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Posted
Sep 08 2009, 08:28 AM
by
Karen Datko
Rating:
Money Blog: Smart Spending Blog - MSN Money
This post comes from J.D. Roth at partner blog Get Rich Slowly.
Note: Although I try to keep GRS a politics-free zone, today's topic is inherently political. I've stayed as neutral as possible in the article, but I know that there'll be some political discussion in the comments. Please keep conversation civil, as always.
Because I was frustrated with my own ignorance about the U.S. federal budget and our tax system, I recently spent 12 hours researching a variety of tax topics. From my research came two articles: my recent short guide to the federal budget and today's post, which answers some of my personal questions about taxes.
In the earlier post, we tried to take a few small steps toward understanding the federal budget. We looked at where the U.S. government spends its money. But where does it actually find the cash to spend?
Of the $2.333 trillion in U.S. government receipts:
- $1050 billion (45.0%) comes from individual income taxes.
- $939 billion (40.2%) comes from social insurance/retirement receipts.
- $221 billion (9.5%) comes from corporate income taxes.
- $76 billion (3.3%) comes from excise taxes.
- $20 billion (0.9%) comes from estate and gift taxes.
- $28 billion (1.2%) comes from Federal Reserve deposits.
- $16 billion (0.7%) comes from other miscellaneous sources.
As you can see, nearly half of government receipts come from individual income taxes. Naturally, taxes are a hot-button issue. They have been since this nation was founded. (To be fair, though, the driving force then was "taxation without representation." Modern complaints are against taxes in principle, I think.)
During my research, several questions about taxes occurred to me. In today's article, I'll do my best to share the answers I found.
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Posted
Apr 14 2009, 02:20 PM
by
Karen Datko
Rating:
Money Blog: Smart Spending Blog - MSN Money
On the eve of tax day, we turned to our favorite tax site, Don't Mess With Taxes, to see what was on blogger Kay Bell's mind.
Among her excellent posts about last-minute tax filing tips was this little item -- about a sin tax that wasn't adopted. While state lawmakers and/or Uncle Sam have raised taxes on other less-than-stellar behavior, Nevada lawmakers just said no to a state brothel tax.
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Posted
Apr 08 2009, 12:30 PM
by
Joan Melcher
Rating:
Money Blog: Smart Spending Blog - MSN Money
With the dreaded tax-filing deadline approaching, many corporate chains are looking to provide solace. And what better way than -- you guessed it -- food!
They’re figuring free Cinnabon bites, a taco or ice cream cone likely will soften the blow. And they may be right. So let’s check out the details.
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Posted
Mar 10 2009, 06:08 AM
by
Karen Datko
Money Blog: Smart Spending Blog - MSN Money
This post comes from Jim Wang at partner blog Bargaineering.
Starting today, I'll be volunteering every Tuesday morning in the kitchen at the local Howard County Meals on Wheels facility. It's less than five miles away one-way, but I still wanted to research how to claim the driving mileage on my taxes to reduce my tax burden as much as possible.
At 10 miles a week and 52 weeks, we're looking at only 520 miles for the entire year. The deduction for 2008 was 14 cents a mile (IRS standard mileage rates), so we're talking a $72.80 deduction -- but every bit helps.
This is what you need to do to determine whether you can claim it and what you need to do to document it. (This is covered in IRS Publication 526.)
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Posted
Feb 12 2009, 12:01 PM
by
Joan Melcher
Rating:
Money Blog: Smart Spending Blog - MSN Money
Watching the news, we have to wonder why high-level financial wonks and politicians tapped for Cabinet positions have so much trouble getting their taxes straight. We won’t have that problem because we’ve learned how to have our tax preparation done -- for free online. And it gets better -- it’s through the Internal Revenue Service Free File program. Get ‘em where they live, we always say.
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Posted
Feb 10 2009, 05:44 AM
by
Karen Datko
Rating:
Money Blog: Smart Spending Blog - MSN Money
This post comes from Jim at partner blog Bargaineering.com.
E-filing stands for electronic filing and is an option the IRS offers for those who want to skip paper tax returns and go electronic. There are many benefits to e-filing your taxes, but there are still a lot of people who don't e-file for reasons I'm not completely sure of.
I know that a lot of filers simply aren't familiar with the system and are used to filing a paper return; I completely understand their reservations. I didn't trust electronic bill pay for the longest time and I'm 28, not someone who had been mailing checks to pay bills for 20 years.
For those on the fence, wondering if you should e-file, here are 10 good reasons why you should:
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Posted
Jan 29 2009, 04:32 PM
by
Karen Datko
Money Blog: Smart Spending Blog - MSN Money
The ranks of people collecting unemployment benefits have swelled to unprecedented numbers, and there are some things those people should know. They can start by reading Kay Bell's post called "Tax concerns of the unemployed" at Don't Mess With Taxes.
First off, unemployment compensation is subject to income tax.
"Not to rub salt in the wound, but the tax code often causes additional problems for unemployed folks," Kay wrote.
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Posted
Jan 08 2009, 07:20 AM
by
Karen Datko
Rating:
Money Blog: Smart Spending Blog - MSN Money
The tough economy has produced one blessing we can count. "It's helped the IRS find a heart," Kay Bell said in a post at Don't Mess With Taxes.
IRS Commissioner Doug Shulman announced that the Internal Revenue Service will work with people who can't pay what they owe because of job loss or some other financial catastrophe.
You'll still have to pay your taxes, but you may get more time to do it. "The IRS does feel your pain," Kay wrote.
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Posted
Mar 07 2008, 04:20 PM
by
Karen Datko
Money Blog: Smart Spending Blog - MSN Money
How does Patrick at Cash Money Life really feel about tax refund anticipation loans? He writes, "The refund anticipation loan is quite possibly one of the worst things to happen to taxes since ... well, taxes." First of all, why not wait the 10 to 14 days it will take the IRS to get your money to you electronically. "Unfortunately, some people aren't satisfied with mere days. They want it now!" Patrick says. "Enter the refund anticipation loan," which he calls "essentially payday loans that are guaranteed by your tax refund."
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Posted
Feb 25 2008, 11:16 AM
by
Donna Freedman
Rating:
Money Blog: Smart Spending Blog - MSN Money
This post comes from Abby Freedman, a freelance writer and daughter of Smart Spending blogger Donna Freedman.
As an aspiring accountant, I am just odd enough to find income taxes fascinating.
Still, I understand there are saner individuals out there who prefer to duck and cover until this season is over.
Generally, they cope by forking over $100 to $200 to have simple returns completed -- and not necessarily by a CPA -- at a "tax-in-the-box" establishment.
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