“The hardest thing in the world to understand is the income tax.” - Albert Einstein, physicist. Well! It may be connected to his theory of relativity but, being a physicist that he was, he didn't think of the U.S. tax system in reverse. It would have been a lot easier for him if he understood two things:

  1. The more you make, the less you pay - ever heard of loopholes?
  2. The less you make, the more you pay - never heard of loopholes?

Filing tax returns, for some, is like going to the dentist. If you have flossed once a day and brushed twice a day regularly, then going to the dentist should be a breeze and not something to dread upon.

So keep records of all your income and expenses. Figuring out your tax returns should be a breeze as well.

Always remember this golden rule:
You earn your money in pre-tax dollars but you spend them in post-tax dollars.

Don't try to fool IRS

Al Capone was not sent to jail by Eliot Ness
Al Capone was sent to jail by IRS

How to Make Money with Your Tax Return - INFOGRAPHIC

 

 

 

 




 

 

 

 

 

 

Australian tax calculator
http://www.industrysuper.com/calculators-and-tools/calculators/

 

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Corporate Taxes Less Than One-Third Of Individuals In 2008

Sunday, February 28, 2010, 2:01 PM | Leave Comment

I was surfing yesterday [Internet surfing is the most I do – too scared of water] and I came across a site “The Center on Budget and Policy Priorities.” It has given an example of the 2008 federal budget in terms of spending and financing. Something caught my eye on the graph for financing the […]



Millions Of Households Cannot Qualify For Refinancing

Saturday, February 27, 2010, 12:39 AM | 4 Comments

Refinancing for millions of households is next to impossible for the best interest rates. Statistics show that half of the nation’s borrowers have mortgages with rates above 6 percent even though the average rate on 30-year, fixed-rate mortgages has been about 5 percent for most of the past year, according to research firm First American […]



Put Wide-Ranging New Tax Provisions To Your Advantage

Friday, February 26, 2010, 7:23 AM | 5 Comments

By now, you should have received your W-2, 1099’s and all documents that will help you do your tax calculations and then filing. If you have, then it’s time to start tackling your taxes, at least the preliminary data entry, either using tax software or doing it manually with paper and pencil. For your convenience, […]



Congress Is The Designer, IRS Is The Implementer

Friday, February 19, 2010, 2:59 AM | 1 Comment

Congress legislates, the rest of the country follows. As I understand it, that includes the executive as well as the judiciary branches of the government. Let’s not forget that. IRS is a small entity, but let’s face it, it has one of the biggest responsibilities of the many institutions this country has. The famous slogan […]



Tax Changes In 2009 You Should Know Before You File

Friday, February 5, 2010, 1:03 AM | 3 Comments

For folks, who don’t do taxes themselves but get them done by professionals, I want to say this. Don’t be afraid to do them yourself. Each year, there are some changes in the tax code that you should know about before you file your taxes in the following year before April 15. Most of the […]



4 Small Steps To Take – Away From The Tax-Man

Sunday, January 10, 2010, 2:37 AM | 1 Comment

Everyone is getting ready to do their taxes, most of the folks anyway before April 15, 2010 which falls on a Thursday. Either they would do their taxes themselves or get them done by a professional. But there is nothing you can do now to make any changes for 2009. That year is gone, just […]



Millions Will Have To Repay Part Of Tax Credit

Sunday, November 22, 2009, 3:12 AM | Leave Comment

Washington Post reported on November 16: “Millions will have to repay part of tax credit.” Excerpts from the report More than 15 million taxpayers may owe the government $250 or more because of how the IRS last spring set up President Barack Obama’s tax break that was designed to help consumers spend the U.S. economy […]



First-Time Home-Buyer Tax Credit – Poor Rich Folks

Saturday, November 14, 2009, 3:44 PM | 1 Comment

As we all know by now, the $8,000 tax-credit for first-time home buyer has been extended by the U.S. Congress as of November 6, 2009. It is a true dollar-for-dollar tax credit of up to $8,000 for 10% of the cost of a home. Even if your income is low and you don’t have to […]



The IRS is coming after the filthy rich

Friday, October 30, 2009, 6:17 AM | Leave Comment

Direct from the horse’s mouth. IRS Commissioner Doug Shulman said on Monday “A new Internal Revenue Service enforcement unit targeting the very wealthy will help the tax agency decode partnerships, offshore trusts and other complex techniques used to hide income.” If you think you are filthy rich, watch out. The IRS is coming to your […]



IRS touts its amnesty, trains sights on evaders

Thursday, October 15, 2009, 5:07 AM | Leave Comment

This report is published on nytimes.com. Excerpts The Internal Revenue Service said more than 7,500 U.S. taxpayers with undeclared offshore accounts had stepped forward under its limited amnesty program, and the agency announced a new push to stop tax evaders from moving funds between foreign countries. The accounts ranged in size from just above $10,000 […]