“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

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IRS Will Audit Taxpayers More Rigorously As Never Before

Friday, April 16, 2010, 1:47 AM | Leave Comment

The tax season of 2010 for most of us is over, unless some folks filed in the automatic extension. The Federal government is running a humongous budget deficit this year and will do so in the coming years as well. To lower the deficit, the government has always turned to the American public for better […]

IRS Is Holding $1.3 Billion In Unclaimed 2006 Tax Refunds

Thursday, April 1, 2010, 2:41 AM | 1 Comment

It’s always the IRS that’s after us folks. You don’t get too many chances to square off with the agency. When folks filed their tax return in 2007 for the year 2006, $1.3 billion worth of tax refunds were not, for one reason or another, delivered to the respective tax filers. IRS has your money […]

Two Benefits For Last-Minute Contribution To IRA For 2009

Wednesday, March 31, 2010, 2:41 AM | Leave Comment

Two more weeks till April 15. Most of folks will have filed their 2009 taxes unless some requested the 6-month automatic extension. Everyone wants to look for ways how to lower the tax burden on their income. IRA is one such benefit to do just that. You have till April 15 to still contribute to […]

Understand And Beware Of Refund Anticipation Loans – RAL

Thursday, March 25, 2010, 6:00 AM | 2 Comments

Many of us have already received tax refund – big and small. Some who are in dire need of the refund money now than wait for something like two weeks are increasingly taking advantage of Refund Anticipation Loans (RALs). These loans have extremely short duration and last for as little as when you actually receive […]

2010 Individual Tax Return Checklist And Review

Friday, March 19, 2010, 1:11 PM | 3 Comments

Small Business Tax Review – The tax and management guidance to small and medium sized businesses – like previous years have done a super job this year as well for individual taxpayers convenience. Among other things, they have developed a checklist you can use if you are preparing your own return, reviewing your return, etc. […]

Breakdown Of How Our Federal Tax Dollars Are Spent

Tuesday, March 16, 2010, 12:29 AM | 2 Comments

If you think nothing, you are right. Who knows where our federal tax dollars go? The federal government collects taxes in order to finance various public services. “I don’t see no money being spent in my neighborhood.” Well, you might not see it, but it is being spent on something. That may be apparent to […]

Starting In 2010 IRS Will Issue Tax Refunds As Savings Bonds

Saturday, March 6, 2010, 1:05 AM | Leave Comment

You read it right. Starting in 2010, the IRS will issue tax refunds in the form of savings bonds. That’s an incentive from the government for you to accept the offer or reject it. Most people historically, given a choice when they get the tax refund, will spend all of it or most of it. […]

5 Health Insurance Tax Tips For The Self-Employed

Wednesday, March 3, 2010, 12:33 AM | 7 Comments

If you are self-employed and are managing your business either from home or have rented space, you can take steps to minimize your tax-bite for your health insurance. You can take advantage of IRS-implemented but Congress-designed clauses about how and under what circumstances you can take deductions for your health insurance. You can take advantage […]

Understanding The Essence Of Your Property Tax

Monday, March 1, 2010, 12:25 AM | Leave Comment

Your property tax, as you might very well know, is a big source of public safety [police, firefighters, etc.], schools, roads, libraries, and other services in your town and almost all American communities. During the last few decades, on and off, there have been efforts to stop more increase in local property taxes in the […]

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 […]