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Keep Uncle Sam cranky!

  • It's no wonder Uncle Sam is not very happy here. His vault is empty.
    Don't Mess With Taxes aims to keep him cranky by providing tax and personal finance tips and advice that will put more money in your bank account, not the government treasury.

Great Googly Moogly!

July 2009

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Tax Calendar

  • April 15 has come and gone, but millions now have until Oct. 15 to file their 2008 returns. And millions more have 2009 tax planning to do.
  • There are plenty of year-round tax dates to keep track of, as well as lots of tax-saving moves you can make between Jan. 1 and Dec. 31.
    Find them here each month.


    monthly tax moves
  • July 1: You're halfway through the year. Now's the perfect time to make some midyear tax moves that could cut your 2009 IRS bill. If your life has changed significantly since the beginning of the year, adjust your withholding to more accurately reflect your new life, and tax, situation. Just give your employer a new W-4.

    July 4: Happy Independence Day! Celebrate your independence from future tax hassles. Hire a tax professional now to help get your tax life in shape while there's still plenty of time to plan.

    July 10: Does your job include tips? If so and you received $20 in tips in June, use Form 4070 to report them today to your employer.

    July 17: Are your kids at day camp while you work? You might be able to use that expense to claim the child and dependent care credit to cover some of the costs.

    July 21: It's been summer for month. How's your air conditioner holding up? If you need a new one, make sure it's energy efficient; that way on your 2009 tax return you can claim a tax credit for 30 percent of the cost, up to $1,500. Other energy-saving home improvements also qualify. Get the details at EnergyStar.gov.

    July 31: If you kids are older and working summer jobs, make sure they understand their tax responsibilities. You also can help your youngster get a nest egg head start by helping him or her open a Roth IRA with some of those summer earnings.

    Small Business Tax Calendar -- July: Important filing, deposit and record keeping dates your company needs to know.

Carnival of Taxes

  • Where we party like
    it's 1040 ... Form 1040!


  • Check out the latest
    Carnival of Taxes,
    #55: Tax Fireworks


    Want to be a part of the next one on August 3? Just review the Tax Carnival guidelines
    and then send
    your tax musings, mumblings,
    even music to the
    Tax Carnival submission page
    .
  • Catch up on prevous
    Tax Carnivals in our archives.

Tax Terms

  • Earned income -- It's just like it sounds: Compensation you receive from work, including wages, salaries, commissions, tips and self-employment endeavors. Learn more...
  • Unearned income -- Money that is not gained by work or delivery of a service or product. It's most well-known source is from investments. Learn more...
  • Tax rates/brackets -- The U.S. tax system is a progressive one, in which the greater the earnings, the higher the tax rate. Learn more...
  • See these and other tax terms
    in the perpetually updated
    Tax Glossary.

Cool tax quotes

  • The income tax has made
    more liars out of the American people than golf has.

    -- Will Rogers, humorist
  • I'm proud to pay taxes in the United States; the only thing is,
    I could be just as proud for half the money.
    -- Arthur Godfrey, comedian
  • Intaxication: Euphoria at getting a refund from the IRS, which lasts until you realize it was your money to start with. -- Author unknown, from a Washington Post word contest
  • "Internal Revenue Service: The world's most successful mail order business.” -- Bob Goddard, writer
  • "If you are truly serious about preparing your child for the future, don't teach him to subtract. Teach him to deduct." -- Fran Lebowitz, writer
  • "The United States has a system of taxation by confession." -- Hugo Black, Supreme Court Justice

But wait! There's more!

  • If you'd like to view more than
    the posts shown on this page, Arrow_right click here to go to the Don't Mess With Taxes archives page. There you can browse earlier blog items by the month they were posted or by their category.

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I gotta tell ya ...

  • AKA Disclaimer:
    The content on Don't Mess With Taxes is my personal opinion based on my study and understanding of tax laws, policies and regulations. It’s provided for your private, noncommercial, educational and informational purposes only. It’s not a recommendation or endorsement of any company or product. I strongly suggest that when it comes to filing your taxes, you get additional, professional, paid-for guidance from your accountant and other financial advisers who are familiar with your individual circumstances. In other words, don't blame me!

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Rocking Around Austin!

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Monday, June 19, 2006

Baby got backup

Actually, baby (AKA moi) only had partial backup … for my computer, that is.

Computer_crash_2 And that was, staying on the slightly dated musical reference point here, a real pain in the backside when, a couple of weeks ago, my computer decided it had had enough.

Yep, on June 2, after running its weekly system virus scan, my machine crashed.

I knew it was coming. Even though the thing is only about 18 months old, it had been making a disturbing noise for the last month or so. The sound was bad enough that only the week before I had mentioned to the hubby that I needed to look into a full system backup program. Just in case.

Unfortunately, I neglected my prescience and didn't get around to it in time.

So I'm sitting here that Friday night, panicking because my PC had gone into a coma. I rebooted and rebooted, but with only partial success. I eventually managed to get it to reveal my desktop icons, but I couldn't get any of them to open.

I called Dell, where we still had a service contract in force. And after trying a few more rebootings and hitting F8 and F12 keys and me uttering a few F things, the guy told me that my hard drive had crashed. Duh!

Long story short -- really! -- I got a new hard drive the next week and a local PC place was able to salvage all of my documents. That was a great relief. I had been backing them up to a flash drive, but not as regularly as I should have. My latest backup batch was April 25.

But Congress had passed a new tax bill in mid-May, meaning all the data I'd collected on that and stored on my PC was, at least temporarily, inaccessible.

And since it was only Word and Excel and PDF files I'd saved to the portable drive, I had to reload all my software programs, which led to more of that posterior pain I mentioned.

You know how it is. You get your computer set up with special little tweaks and shortcuts and you're comfortable with everything. Then when they disappear, you have to recreate them or worse, find that the new software now on your machine won't let you do things the same way the old one you liked so much did.

Better backups: So I am going to get a backup program to store all the computer recreations I'm still working on. And actually, my delay in getting one before my PC blew up may turn out to be a blessing in disguise.

Last week, New York Times tech columnist, David Pogue, wrote about a new flash drive that hints at "a future where we could abandon not only the heartache of hard-drive failure, but even the expense, frustration and obsolescence of PC ownership. … [Where] we'll store our entire digital worlds onto cheap 160-gigabyte flash drives … jack into public computer terminals everywhere we go -- taxis, restaurants, airplane tray tables -- and pick right up where we left off."

That future, Pogue says, arrives in July when Lexar PowerToGo software, licensed by Ceedo Personal, "will turn a flash drive into a portable Windows XP ecosystem, meaning that you can jack into anybody's PC anywhere and find yourself -- and your software tools -- right at home."

Ceedo has figured out how to get your Windows installer, the thing that runs your programs, on a flash drive so that you can take your entire PC with you in the tiny package and operate your PC on any PC -- one at a Kinko's, in an airport waiting lounge or at a friend's house. You can read Pogue's full explanation here (registration required).

And you can find me at an electronics retailer next month buying a Lexar flash drive.

A computer in every room: The new flash backup system will be a nice complement to the laptop I bought when my PC crashed. I know, my PC was only down for about a week, but since you're reading this I suspect you are as computer addicted as I.

My dependence on my PC has gotten even worse since I started working for myself. All my business contact, contract, job specifics, billing and background information was and is once again on my PC. Plus, I now have the blog that calls for my constant attention! So I had to have another machine.

The hubby offered to let me use his, but sharing computers is like sharing a closet or a bathroom, i.e., nigh impossible. Plus, he uses his computer for work, too, so that meant I would have to wait until he's done for the day and he's almost as connected to his laptop as I am to my PC.

Oh, I did give sharing a shot. After being without my PC for about six hours, I crept into the hubby's office after he went to bed. Sitting there with the laptop's screen as my only light -- didn't want to interrupt his beauty sleep, you know -- I managed to get some stuff done. But I knew it wasn't going to work.

That was confirmed the next morning when hubby, trying not to freak out, asked me what I did to one of his settings. We got his machine switched back to the parameters he prefers and headed to Best Buy for my new laptop.

The laptop definitely was not a planned expense. In fact, it blew my June budget all to pieces and right there at the beginning of the month. But I think in the long run it will be worth it.

It already saved my sanity and probably my marriage during the PC down time. It also will be a good emergency and backup (though not in this sense again, I hope!) machine and something we can take when we travel.

And since it was purchased for work purposes, I can write off the sucker on my 2006 taxes. It's what's known as a Section 179 expense, the portion of the tax code that allows businesses to immediately deduct some Twop_backup_tshirt_2 equipment purchases in the tax year they were bought instead of depreciating them over the equipment's entire business-use life. You can read more about §179 and recent enhancements to it via those aforementioned May tax law changes here.

And please, to paraphrase the advice Keith Mars always gives his computer whiz kid Veronica: Always make a system backup!

"Backup" T-shirt image courtesy of Glarkware

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