Not much BUZZ today – but, as I always say,
some BUZZ is better than no BUZZ.
* Tax Pros – are there any of you out there
who have not yet seen the premiere issue of THE TAX PROFESSIONAL or the January
1 issue of TAXPRO BUZZ?
* And, tax pros, I have revised somewhat
the TAX PROFESSIONALS FOR TAX REFORM page and membership application.
* Need help finding a tax preparer? Start your search at my website FIND A TAX PROFESSIONAL.
* Jim Blankenship explains “The Top Income Tax Myth That Can Hold You Back” at GETTING YOUR FINANCIAL DUCKS IN A ROW.
Financially speaking, Jim in correct –
“There
are many myths about income taxes that are just plain wrong. But there is one
income tax myth that is likely the most hurtful to you financially – and that
is the idea that a big refund should be your goal. The actual goal,
counterintuitive as it may sound, should be to owe some tax when you file your
return.”
As Jim goes on to say –
“When
you have a big refund every year, you’re effectively loaning money to the
government throughout the year, and getting nothing for it.”
In Jim’s example a $2000 refund means that
you gave Sam $166.67 each month unnecessarily.
I agree with Jim that if you took this additional $166.67 and
automatically invested it in an IRA or other savings vehicle you would most
certainly come out ahead.
I do, however, realize that if many
taxpayers got an extra $167.67 in their paycheck each month, or $41.67 per
week, they would spend the money – and the increased withholding becomes a kind
of forced savings. This is what many of
my clients do.
My alternative is not to get the additional
money in your take-home pay. If you
company allows withholding for transfers to a credit union or other savings
account you will not have the money “in your pocket” to spend perhaps
improperly. Or you can set up a myRA
account and fund it with automatic weekly or other payroll deductions. To set up a myRA account go to www.myRA.gov.
BTW – I debunked a dozen urban tax myths at
MAINSTREET.COM back in 2010. Click here
to read my article.
* News from Washington DC – “IRS Provides Tax Relief to Mississippi Storm Victims; Tax Deadline Extended to May 16”.
* Russ Fox reminds small business owners that
it is now “1099 Time for 2016”.
THE FINAL WORD -
THE FINAL WORD -
Henry and Richard have started running
their 2016 television ads. They are
particularly stupid this year, as they have been the past few years. And they still “star” the bow-tied fool.
I can’t recall any H&R Block ad ever actually
saying that they are qualified and competent tax preparers who will help you to
make sure you pay the absolute least amount of federal and state tax legally
possible. It is always come in and get a
check – whether via their thankfully done away with usurious refund
anticipation loans or now by winning a $1,000 prize.
Do yourself a favor – avoid Henry and
Richard like the proverbial plague and go to a competent independent tax professional instead. You can start your search for a tax preparer
at FIND A TAX PROFESSIONAL.
TTFN
No comments:
Post a Comment