Tuesday, January 12, 2016


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.

* Russ Fox reminds small business owners that it is now “1099 Time for 2016”.


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.


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