Taxes

I just noticed that I received my $600 economic stimulus tax rebate via direct deposit today. While I am putting this money in my high yield savings account for now, I have to chuckle at how I’m really going to spend this money: on a trip to Europe this August.

So much for stimulating the US economy personally, although I hope others do. Today that $600 is only worth €393, which won’t go far away from home. But an economic boost just may nudge that exchange rate back up a bit before summer.

How are you spending — or saving — your tax rebate?

I just had an exciting Saturday evening with my stack of W2s and H&R Block’s TaxCut Pro.

I swear, I’m not actually so nerdy that doing my taxes is my idea of a good time, but it does feel great to have them done. (April 14th has often been a long night for me in years past). Continued

If you, like me, are a nine-to-fiver and a part-time entrepreneur, the IRS is not going to congratulate you for your hard work, but they will take their cut. Did your side-gig take a loss last year?

You may be able to deduct that loss and beef up any refund you are owed. But be careful: Deduct a business loss for more than a couple years in a row and you may be flagged for a painful audit.

The IRS has recently caught on to taxpayers utilizing self-defined business losses to reduce their total income and, subsequently, their tax liability. As a result, the IRS has instituted the so-called hobby loss rule.

There is no way to easily distinguish between a for-profit business and a not-for-profit hobby. Whether you are a photographer who shoots weddings, a musician who plays a few gigs, or a blogger with advertising revenue, whether you earn $1 a year or $100,000, your side work could be considered either: a business, or a hobby. Continued

I’m no tax expert, nor do I want to be, but as my taxes get more complicated, I do want to make sure I don’t give more of my money to Uncle Sam than I legally owe. Here are some tax tips that may be especially helpful to the under-30 set. Continued

Congress’ economic stimulus package bill has passed, meaning most American taxpayers will receive tax rebate checks ranging from between $300 and $1,200 per household, plus additional amounts for households with multiple children. Want to make sure you get yours? Continued

No, this is not a sponsored post, and no, H&R Block is not an affiliate. I say that because I am about to lavish their ad wizards with praise, and any right-minded cynic will think I have something to gain by doing so. Alas, I do not. Continued

I’ve never written about health insurance before, but a new law here in Massachusetts mandating that all residents carry health insurance has got my biscuits burning. Continued

It’s that time of year again when third-grade arithmetic can lead to panic attacks and thoughts of sacrificing ourselves to a pack of ravenous ostriches.

That’s right, it’s tax time, and to help you keep your sanity, MoneyUnder30.com has devised the best ways to stick it to the Internal Revenue Service this year.

Don’t just screw ‘em, screw ‘em hard.

10. When filling out your 1040, have the IRS refer to schedules 1-146C to find your information.

9. Send the IRS a bill for the processing expenses you saved them by filing electronically.

8. Fill your tax return envelope with body glitter and perfume. (The auditor’s wife will love it!)

7. List your redneck brother as two-thirds of a qualified dependent, because, let’s face it; he depends on you when he’s drunk, about two-thirds of the time!

6. Write “numbers are against my religion”. (You could actually start a church believing this and you would be tax-exempt anyway).

5. Find a reason to deduct every single penny you spent last year. (Then get your passport ready).

4. Bury your tax payment in the woods and draw a treasure map.

3. List all figures in Chinese Yuan. One Chinese Yuan = 0.129038918 U.S. Dollars. That’ll keep ‘em counting.

2. Indicate you want your refund wired to your account in Grand Cayman.

1. Subtract 10% of the taxes you owe for the government spending you did not previously authorize!

Do you have a fat tax refund coming to you next year or will you owe Uncle Sam? If you don’t know, find out soon. If you will owe the IRS in April, there ways to reduce your tax burden now. While many year-end tax tips benefit homeowners and taxpayers with dependents, there are a few ways young, single taxpayers can reduce their tax burdens too.

Check Your Investments – If you already have non-retirement investments, December is a good time to give your portfolio a check-up and the best time to unload underperforming stocks. This will help offset any 2006 capital gains and up to $3,000 of your wages.

Boost Your IRA – If you have a traditional Individual Retirement Account, annual contributions of up to $4,000 are tax free. Better still, you have until April 2007 to make contributions that can count on your 2006 return. Just remember that you’ll pay those taxes later if you make an early withdrawal from a traditional IRA. Roth IRAs provide – in most cases – tax free withdrawals, though contributions are not tax-free.

Long Distance Refund – It’s not everyday Uncle Sam admits to pocketing more than his fair share. This year, however, the government will issue refunds between $30 and $60 for unfairly collected taxes on long-distance telephone services. Refunds will be calculated based on your filing status, but be sure to review this year’s return instructions to take advantage.

Still Owe? – Start planning now to pay your tax tab come April. With four and a half months to save, you should be able to stash away your tax bill without too much sweat. And, you can throw the cash into a high interest savings account to enjoy the interest you wouldn’t earn had the taxes been withheld from your paycheck.

Tweak for Next Year – If you’re a wage-earner and expect to owe more than $1,000 to the IRS this year, chances are your withholdings are off. Adjust your withholdings with your payroll manager on or before the new year, including allocating an additional amount to be withheld, if necessary. Hint: If you work more than one job, claim the appropriate number of allowances on your largest paycheck and zero on all others.