Archive for April, 2010
8 Essential Tips for Personal Taxes and Accounting
A very important part of personal financial planning is tax planning. This article will help you take the mystery out of personal tax Planning by providing a financial planning perspective for your overall tax situation.
1. Be aware of the different types of taxes
Many people are not aware of the different types of tax systems that we have. Income: Federal, State and Local. Real estate tax. Tax on Investments: Dividends, interest, capital gain, and passive income on stocks, bonds, mutual funds, and investment real estate. Estate or Inheritance Tax: Federal and state tax due on the estate or the inheritor. Gift tax: tax on giver of large gifts. Entitlement Tax: Social Security and Medicare (FICA), Federal Unemployment (FUTA). Sales, self employment, and corporate taxation.
2. Consider working with a Qualified Tax Professional
Tax planning can be complex for many people, therefore it may be wide to work with a trusted professional tax advisor.
Tax advisors not only prepare your taxes but can help make decisions that will affect your future. They can serve as advisors for a whole host of matters and they can represent you if you face the dreaded audit. Consider the following when selecting a tax professional:
- Local: Someone that you can easily meet with face to face
- Personable: Someone that you can interact with and who cares about you
Is Avoiding Income Tax Moral?
The question of income tax is a thorny one. On one hand everybody hates it, but on the other, no one seriously considers challenging it. It?s like gravity. We simply accept it as if it were a law of nature.
Well it should be challenged, and here?s why. To avoid income tax by whatever legal means possible is entirely moral. And the reason lies in understanding exactly what income tax is, and what it is based on.
To tax a person?s income is to tax that person?s life. For consider this: when you work you expend time and energy. You devote forty or more hours each week of your life to trading your life?s time and energy for money. That money is therefore a tradeoff for the time and energy you put in.
If the government takes 25% of that money as tax, then it is actually taxing your life at the rate of 25%, and saying in effect that one quarter of your life belongs to the state. And if the government takes 50% of your money in tax (as the UK government has just announced as of writing), then 50% of your life has been commandeered by the state.
In order to make this point as clear as possible, consider the plight of black slaves in the early days of America. A slave was someone who did not own his life. His labour was expropriated by the slave owner. Given this situation you could consider the slave?s income tax rate to be around 80% – with the remaining 20% being taken off him as the cost of food and board.
How to Buy a Car with Bad Credit, Auto Credit Express® Video
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State Income Tax Brackets and Rates
The easiest way to understand federal income tax, state income tax and all those other concepts that come with them is by understanding what the progressive income tax scheme is. Simply put, this scheme tells that the tax charge rate rises as income gets larger. For instance, if you compare federal income tax brackets to state income tax brackets, you will find lots of trend similarities.
Basically, except for those living in Alaska, Nevada, Florida, Texas, Washington, South Dakota, and Wyoming, every employee in the United States needs to know about state income tax. Majority of the states, 34 actually, impose state income tax aside from federal income tax. There are also cases where states allow cities to apply an income tax rule above the state income tax and federal income tax. This applies in New York City, for instance. In this city, aside from a state income tax (the maximum from which is 8.14%), there is also a city income tax that reaches to 4.00%. Living in a city that applies two tax rules is definitely more expensive if compared to the cases in “federal income tax only” cities.
The state income tax rates usually range from 1% to 10%. Although the state income tax rule carries different rates, it works in the same way as the federal income tax rule. California, has the highest rate of state income tax. It has a maximum tax rate of 10.3%. Illinois, on the other hand, has the lowest. It levies a flat tax of only 3%.
Poor Credit Auto Loans ? Loans for Automobiles on Bad Credit
Is the poor credit mark on your credit ranking stopping you from applying for financing a car? Your application for a car loan has high chances of being rejected if you approach the traditional bankers. The credit checking is one of the most important factors whereby they approve your loan. Forget the tensions. Apply for the poor credit auto loans with the internet based money lenders.
These auto loans are designed for people who need a car but cannot get them financed as they carry a poor credit. The money lenders operating online do not care about your past. They say that they are not interested in your past. They believe in your present and hence will finance you your car even if you have a poor credit.
Speaking of poor credit auto loans, you can avail either a secured or an unsecured loan. While you get to save some money on the secured loans by way of reduction in interest, you may have to face the risk of losing your property in case you default. On the other hand, if you take an unsecured loan, you get to keep the car without any risk of losing any property.