Personal Tax News

Tax Advice: How to Avoid Getting Audited

Sun, 08 Apr 2007 22:30:20 -0800

IRS audits for high income households are on the rise, and WSJ's Tom Herman has some advices for us. To be honest, producing accurate tax returns is a growing pain now. My last year's tax return adds up to 45 pages, and I couldn't do it without professional help.

Should You Perform Roth IRA Conversion AFTER Retirement?

Sat, 10 Mar 2007 08:23:56 -0800

Fairmark brought a good case about when to convert your IRA to Roth IRA for several tax benefits even after you retire. Among them, you can reap extra tax-advantaged growth provided by Roth IRA, avoid required distributions in IRA and potentially save on tax. Still, one needs to carefully evaluate his tax brackets and time the conversion well to take the full advantage.

Should Bill Gates Oppose of Estate Tax Repeal?

Wed, 07 Mar 2007 13:38:10 -0800

While I can understand where Mr. Gates and Mr. Buffett come from, should they, arguably the best two capitalists of our generation, believe they, or their desginated agents, can spend more effectively than the government?

Unpaid Tax Per Household: $2,680

Mon, 05 Mar 2007 05:01:17 -0800

Isn't it a surprisingly high number? It is estimated that the tax gap, or the difference between what taxpayers owe and what they pay, is $300 billion, or $2,680 per household now. But is there any quick fix? Our tax system is too complicated to allow effective enforcement. There is probably no way we can close this gap.

Funniest Tax Writeoff (Attempts)

Thu, 22 Feb 2007 18:04:39 -0800

Bankrate compiled some super-funny attempts to write off more expenses. Of the 9 stories, I love the following the best:

A Quick $30 Refund You Shouldn't Overlook

Thu, 22 Feb 2007 17:48:34 -0800

This is probably the easiest $30 (or $40, or $50, or $60) tax refund you can get. Don't miss it!

What's Your Marginal Tax Rate?

Wed, 21 Feb 2007 17:48:35 -0800

Two Bosten University economists claimed that almost everyone in this country is having the same marginal tax rate of 40%. It is probably true: the poorer has to pay My marginal tax rate? It is about 46%, including my PRC marginal income tax rate of 45% and the Medicare tax.

Tax Reminder: Telephone Excise Tax Refund

Sun, 11 Feb 2007 22:04:01 -0800

Good to keep in mind you may get $30 or more refund from what the government illegally charged you in the last four years.

Taxpayers May Direct Refund To Three Accounts

Fri, 02 Feb 2007 18:29:52 -0800

Yes, it is good to have the flexibility of sending your tax refunds to three accounts, and you may use it to defeat your spending habits so you can save more for retirement. However, it is a bit over-engineering for me. By the way, the split-refund function is not implemented in major tax softwares like TurnoTax and H&R Block's TaxCut.

Average Size of Tax Refund (1995 - 2005)

Thu, 01 Feb 2007 11:29:51 -0800

Do you know the average tax refund is over $2,000 for the last five tax years? Some quick adjustment of your W-4 form may allow you to touch the refund earlier.

Why You Shouldn't File Your Tax Early

Wed, 31 Jan 2007 03:29:49 -0800

WSJ tax columnist Tom Herman discussed why some recent changes in IRS regulations may bring confusion in investment income reporting, and you'd better to wait for your brokerage firms to sort it out before filing your return.

How Will Democrats Resolve the AMT Issue?

Sat, 25 Nov 2006 14:50:28 -0800

It is in both parties' best interest to extend the AMT relief, but given Democrats' preelection commitment of better fiscal discipline, it will be hard battle to find where to cut budget or raise taxes to offset the loss of AMT revenue.

IRS May Simplify Form 1040 By 2009

Wed, 15 Nov 2006 13:46:45 -0800

Is this an irony? Yes, you can simplify Form 1040, but not at the expense of creating yet another new schedule. Isn't it apparent that the root cause of the dozens of hours every taxpayer needs to spend every year is the complicated tax system, not the complicated tax forms?

What About A Custodial Account For My Kid?

Fri, 03 Nov 2006 15:04:44 -0800

Janet Bodnar's nice column at Kiplinger's Personal Finane reminds me that a custodial account under the name of my 4-year old can mean an easy $500 annual tax savings. Plus, I love the fact that this can easily lead to many father/son discussions over the next decade and a personal-finance smart kid. (I will leave it to my kid to decide if he wants to start a personal finance blog, though.)]]>

It Takes Money To Collect Money

Wed, 01 Nov 2006 15:41:49 -0800

Interesting report from USA Today. Before that, I didn't know IRS is piloting its private collection activities. However, from a controller's perspective, I cannot make sense of why it takes $61.2 million to build the infrastructure.

Is Giving by Wealthy Immune to Tax Changes?

Wed, 01 Nov 2006 12:16:01 -0800

Charity Is Selfish, The economic case against philanthropy at Slate.]]>

Clean Fuel Car Models Eligible For Tax Credit

Sun, 29 Oct 2006 12:18:18 -0800

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Family Business Owners: Get Creative On Tax-Free Compensation

Sat, 14 Oct 2006 20:11:11 -0800

One best-kept tax secret for family business owners: you can start a long list of benefits in your family business and buy these essential benefits tax-free.

How Long It Takes To Receive Tax Refund

Sat, 14 Oct 2006 20:07:19 -0800

This is why you'd better choose to file your tax return electronically if you are entitled to a tax refund: you can get your money much sooner.

How To Amend Your Tax Return

Sat, 14 Oct 2006 20:04:32 -0800

It is probably working to your advantage to timely amend your tax return even if it means you have to pay more tax than your original filing is for. Here is IRS's tips about amending your tax return.

How To Minimize Your Tax Bill: Get Next Year's Tax Refund Now

Sat, 14 Oct 2006 19:56:06 -0800

You don't have to extend an interest-free loan to the government. By carefully deciding the number of withholding allowance you claim on the W-4 form, you can get your next year's tax fund now today to help your cashflow.

IRS Is Actively Recruiting Top Law Graduates

Tue, 10 Oct 2006 04:57:27 -0800

IRS is becoming offensive ... in college recruiting. Lifestyle is definitely a good sales pitch.

Top Tax Saving Tools

Tue, 10 Oct 2006 04:52:28 -0800

Bankrate's "10 ways Uncle Sam helps you save money" is a good summary of top tax-saving vehicles. If you are new to active tax management, it is definite a worthy read.

Many Taxpayers Forgot Sales Tax Deduction

Sat, 07 Oct 2006 17:34:59 -0800

WSJ reports that about half a million itemized taxpayers in seven no-state-income states forgot to include sales-tax deduction, which usually means several hundred dollars in reduced tax. (Unfortunately, the clause hasn't been renewed for 2006 yet.)

Some Tax Breaks May Not Get Extended

Sat, 07 Oct 2006 16:45:33 -0800

Tom Herman at WSJ brings the bad news: some populate tax breaks may not be renewed this year thanks to the political climate in Washington D.C.