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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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Sunday, October 26, 2008

The good side of taxes

"The only thing that hurts more
than paying an income tax
is not having to pay an income tax."
-- Lord Thomas Robert Dewar 

Yes, that Dewar. The Scottish whiskey distiller. The man whose namesake beverage is probably imbibed in large quantities around April 15.

But his observation is sobering. And worth considering as the presidential campaign heads into the home stretch. During these last nine days, the perennial political specter of taxes will be invoked as something more terrifying than any Halloween demon.

Don't get me wrong. I don't like paying taxes, especially when my planning has been a bit off and the hubby and I face a larger-than-expected IRS bill.

And I make a living trying to help people pay as little tax as possible, to Uncle Sam and their state revenue officers.

The long tax-funded list: But we all must pay some of our money to our governments.

Want highways that are drivable? Their construction and upkeep are paid for by taxes.

Want public schools? Most folks do, and that means the teachers have to be paid (more, but that's another topic) and the facilities built to educate our youth.

Girl in swing_solrac111 Want to take your kids, once they're out of class, to the park? Buying the land, putting in the swing sets, mowing the grass are all paid for with our tax dollars.

Want to make sure the park stays safe? Police officers, along with fire fighters and associated ambulance technicians, require taxpayer money so that we all can be protected.

Then there are our tax dollars that go to our armed forces, not to mention Social Security.

You think you, personally, can and would take up the slack for these and many other services that have to be cut every time tax collections aren't sufficient?

Think again.

I know I'm not patching potholes or patrolling my neighborhood. I don't do work in my own yard (and I'm not lending out the hubby!) so those overgrown parks are on their own. And if you collapse at my house, good luck since I don't know CPR.

I'm depending on my tax dollars to cover these tasks, regardless of whether I personally need them.

We are them: Ah, yes. That nagging question of what do my tax dollars get me, specifically and personally. That "me" connection to taxes is the one that politicians always harp on.

"It's your money. You can spend it better than the government."

But can you? Maybe, and in a very limited situation. That's why we need to also keep in mind even more famous tax quote from a former Supreme Court Justice.

"I like to pay taxes. With them I buy civilization."
-- Oliver Wendell Holmes, Jr.

We are part of a community -- many communities -- and we need to think about not just what we need or want from these social structures, but about our neighbors and even those folks we don't know who also are part of the tax-funded system.

There's been a call for decades now to privatize things so that our taxes won't be needed to pay for the services we enjoy. That's more efficient, contend these proponents. But does starving the beast of government really work better?

I don't think so.

Yes, there is waste in governments, bridges to nowhere and pork and the buzzword of this campaign, earmarks. But there is waste in the private sector, too, such as extraordinary perks and payouts for top executives.

Overall, however, government serves a purpose that private industry won't because companies exist to make money. Governments are designed to meet the needs of citizens. All citizens.

So if some of my tax money goes to a school I don't use because I don't have any kids, so be it. That educated child will eventually get a job, contribute to his or her community and, yes, pay taxes to keep the cycle going.

Photo courtesy solrac_gi_2nd and morgueFile

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Comments

Just read this blog. Should be mandatory for all those freaking out about "redistributing the wealth."

Been saying this for 9 months now: either raise taxes or get a sensible foreign policy. Can't use deficit spending on wars.

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