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Review Category : Taxes

7 Ways To Save Money On School Supplies

It’s school time again and the alarm clocks will begin to get set for early morning once again.   Traffic patterns to work will become heavier and the weekly routine will be in full swing.   Even though the summer days are fading, you’ll begin to get notices around what school supplies your child is required to bring.    This means it is time to be a smart shopper and make sure you save a few bucks when you get around to buying the student school supplies.  Here are seven quick ideas to stretch your dollar during the back to school season. Use Social Media– In this day and age all of the big stores from Office Depot, Staples, and Best Buy will have ads up on their Facebook business page.  You should check their Twitter feeds and most certainly at least Google the word ‘discount’ and the name of the store to see what coupons exist to trim down your back to ...

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5 Financial Wins For Same Sex Couples

In 2013, the Federal Government struck down a law that prevented the Government from recognizing same sex marriages.  It was still banned in thirteen states, including the state of Georgia.  With recent landmark Supreme Court ruling that allows for same sex marriages, the only victory won wasn’t in the wedding aisle.  A slew of financial benefits will come out of this for same sex couples.  Here are five financial wins for LBGT couples. Inheritance- Generally, when you die, everything will transfer from one spouse to another with a legally recognized marriage with the exception of ‘named beneficiaries’ within contracts such as life insurance and IRA accounts.  This should help same sex couples deal with having to write odd wording in wills and trust to do work arounds within various states. Social Security- Same sex couples who were not recognized in those thirteen states could now see even bigger benefits from Social Security.  The key here as with married heterosexual couples ...

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47% Of Americans Pay No Income Taxes

It’s pretty interesting to look at who pays income tax in America and who does not.  That is until you realize you might just be in the top 1% of all wage earners in America and the differential in the percentage of taxes you pay relative to overall adjusted gross income does not match at all when you add up the numbers.  What’s truly amazing about the data below is that the top 1% of wage earners is about $380,354 and the top 5% of wage earners is about $159,619, but the top 5% account for 58.72% of the taxes. When compared to their share of adjusted gross income, the top 1% are almost double the income taxes against their actual AGI contributed into the mix. WHO ARE THE 47% WHO PAY NO FEDERAL INCOME TAXES? (this excerpt was taking from www.financialsamurai.com) The Tax Policy Center’s Donald Marron said they fall into three main groups: The working poor. The earned income ...

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When Can I Hire My Kids In The Business?

When you run a small business, you often look for almost any tax deduction that you can take off your bottom line that has a legitimacy when it comes to filing your taxes. For most business owners, there is always a blurred line between your personal life and your business life. Often, your children end up getting involved whether it comes to running errands, filing papers, or even assisting with your company Facebook page. So, the big question is when can your hire your children in the family business and how do you document this when it comes to filing your taxes? I truly believe that one of the most underutilized tax deductions for small business owners is getting their children engaged in the family business. By placing children (or even grandchildren) on the payroll who are under the age of 18, you can create a great opportunity to take advantage of something called income shifting. Your company can hire ...

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How Much Of My Mileage Can I Tax Deduct This Year?

During tax time, we often get the question from employees and business owners about how much of their auto mileage they can deduct on their tax return. This is one of the biggest questions where a slippery slope can occur without approaching this topic in the right manner. For most people including business owners, their automobile is not used 100% for business purposes. Thus, if you use the car for both business and personal purposes, you can only deduct the mileage related to the business portion of using the car. Here are some ‘your smart money moves’ guidelines when thinking about how much of your mileage you can deduct on your tax return. You can generally figure the amount of your deductible car expense by using one of two methods: the standard mileage rate method or the actual expense method. If you qualify to use both methods, you may want to figure your deduction both ways before choosing a method ...

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When Can You Tax Deduct Meals And Entertainment?

Tax time is coming up and inevitably there are questions we get each and every year from small business owners and employees about what they can and cannot deduct.  Of course, it’s probably best to consult a CPA that matches your style of being conservative, middle of the road, or aggressive, but I thought I would give you some direction on several of the questions we get over and over again during tax time.  Here is the ‘your smart money moves’ post on deducting your meals and entertainment expenses. Let’s face the facts.  Most small business owners are downright lousy when it comes to keeping high quality records of their meals and entertainment expenses.  All they do know is that they would like to deduct every trip to Starbuck’s, every lunch they had at Taco Mac, and every dinner they ate on their last vacation.  But the question really is where does the line start and where does the line ...

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FREE Always Comes With A Significant Cost

The President recently announced his intention to get a proposal through Congress that would make two years of community college ‘free’ for students.  Of course, the plan doesn’t have an actual price tag attached to it yet.  I guess it may not matter because all we do know is that it would be ‘significant’ if some 9 million students across all 50 states would benefit with an average bill of close to $4,000 per child. I am personally not for this proposal, but here are some potential thoughts on some pros and cons of creating this new type of free schooling proposition: CONS: Doesn’t solve the real problem:  The real issue is the runaway freight train of college costs.  We already have well over 50 colleges and universities that more than a 1 billion dollar endowment.   And, these are supposed to be non-profit organizations, right?  There’s an oxymoron if I have ever heard one. Will needy children actually benefit?:  Most ...

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Do I Need To Make Estimated Tax Payments?

You recently lost your job or your job lost you and now you have decided to take some freelance consulting jobs to pick up some spare cash. You fill out a W-9 in order to get paid, and a few weeks later a check comes in the mail made out to you. You are really excited because no taxes have been taken out and you feel flush with cash. Now, you are beginning to file taxes for 2014 and are starting to wonder when the Government is going to ask you to pay taxes. The reality is that most of you who earned your first 1099 will likely file Schedule C (sole proprietor) with your first year of income. Some of you may set up an LLC, but are still uncertain how exactly money gets from the check that got deposited in your bank account to the IRS for federal taxes and your state for state income taxes. In order ...

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Have You Done The Research?

Giving to a good cause can evoke some of the most wonderful emotions we feel. The problem is that many individuals give without always doing the proper research on the charities or what the charities do with the donated money. Most of you can remember the Seinfeld episodes where George gets people to donate lots of money to the human fund without anybody asking any real questions about the charity. When they did, George gave them a few concise answers and people just accepted it as fact. Nowadays, friends ask us all the time through social media to donate money to various causes by clicking a link and filling out a form. Companies ask us to round up while shopping on line or make a $1 donation at the cash register while checking out our groceries. If you have budgeted aside a percentage of your income or a dollar amount that you can afford to give away, I recommend that ...

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