“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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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 […]

IRS Will Treat Investment Theft Losses As Ordinary Losses

Wednesday, June 24, 2009, 10:39 AM | Leave Comment

If you have lost money by giving it to a schmuck to invest it for you, help may be on the way especially if you are a victim of the biggest schmuck of them all known as Bernie Madoff. The IRS of the good old U.S. of A. has announced it will treat investment theft […]

States’ Budget Crack Being Filled With Tax Hikes

Tuesday, June 16, 2009, 11:30 AM | Leave Comment

These days, we, the American people, seem to be responsible for almost everything. If the Federal or State needs to fill their treasury, the authorities look up to us. I don’t know about you guys, but I have not felt so important in my life of 6 decades as I do now, even though the […]

Tips For Eligibility To Get $8000 As First-Time Homebuyer

Wednesday, April 29, 2009, 4:33 PM | Leave Comment

There is a nice windfall for some home buyers in the economic stimulus bill signed into law first week of April by President Obama. First-time buyers can claim a credit worth $8,000 – or 10% of the home’s value, whichever is less – on their 2008 or 2009 taxes. This is refundable tax credit, not […]

A Paralyzing Fear of Filing Taxes

Sunday, April 12, 2009, 7:04 AM | 5 Comments

New York Times Online ran a story “A Paralyzing Fear of Filing Taxes” By Charles DelaFuente Published: April 11, 2009. Charles states that Call it fear of filing. It afflicts normal-looking people who function well in other facets of their lives. The symptoms include failing to file tax returns for years on end and squirreling […]

New withholding tables now available from IRS

Tuesday, February 24, 2009, 1:18 PM | Leave Comment

The IRS has released new withholding tax tables that will result in more take-home pay this spring for millions of American workers. The new tables incorporate the new Making Work Pay credit, one of the key tax provisions included in the American Recovery and Reinvestment Act of 2009 that became law in mid. February. No […]

IRS Is Giving Us Some Perks For 2008 Taxes

Monday, February 9, 2009, 12:11 AM | Leave Comment

Don’t forget the stimulus package in 2008 that resulted in a good-sized check for many U.S. taxpayers filing 2007 tax returns. There were other major tax changes in 2008 as well. Therefore, don’t miss out on some much-needed cash when you file your tax return this year. While all that tax repairing tool affects most […]