I trust everyone had a successful 4-day
Thanksgiving holiday week-end.
* Jason Dinesen continued with his usual
custom at DINESEN TAX TIMES last week – “It’s
a holiday week, so I’m re-publishing popular posts from days gone by.”
“The
moral? File your tax returns, no matter
how old or young you are.”
This post concerns a true “urban tax myth”
that I have seen many times over the past 45 years, with various ages
used. Some people have also told me that
they do not have to pay Social Security tax on their wages if over age 65, 70,
or 72.
One taxpayer, who thought he did not have
to pay income taxes any more when he turned 65, 70 or 72 (I forget the age in
his situation), was brought to consult my mentor by his daughter after the IRS
filed a lien on his personal residence due to non-payment of taxes.
I have always said that if you have taxable income you must pay tax
whether you are 1 year old or 100 years old. And you also have to pay Social Security tax if you earn wages subject to Social Security
tax whether you are 1 year old or 100 years old.
The initials EA (and ATA and ATP from ACAT)
are the only initials that appear after one’s name that have anything to do
with competence and currency in 1040 preparation. Contrary to the popular but erroneous “urban
tax myth”, and the attempts of the AICPA, having
the initials CPA after one’s name does not automatically mean that the person
with these initials knows his arse from a hole in the ground when it comes to
1040s. There are many practicing
CPAs who are competent and current in 1040 preparation – but it has absolutely nothing to do with the initials
CPA!
Enrolled Agents do indeed deserve more
respect!
* Please, please check out my new THE LIBERTY TIMES – and please share with family, friends, co-workers, and
colleagues. BTW – a new “issue” is
coming on December 1st.
Alaska tops the list. You know damned well that New Jersey is not
represented here – it probably tops the list of states with highest taxes.
New Jersey is #8 on the list -
“The
Garden State's tax policies create a thicket of thorns for some retirees.
Its
property taxes are the highest in the U.S.”
Considering the recently passed NJ tax
changes, which increase the “retirement income exclusion” and eventually do
away with the Estate Tax, I expect NJ may not be on future “10 Worst” lists,
although the property tax situation has not changed.
I was surprised to learn that Vermont
topped the list –
“The
Green Mountain State doesn't coddle retirees. It has a steep top income tax
rate, and most retirement income is taxed. Vermont treats Social Security
benefits the same way the federal government does, which means as much as 85%
of your benefits could be taxed.”
“A
good way to do that is with digital documentation. Take a picture of the items
you donate, clearly showing that they truly were in very good shape, worthy of
the slightly greater amounts you've assigned them.
Even
better, make them donation selfies.
Include
yourself in the photos to prove that the topnotch items were yours, not just
photos of well-kept articles that you downloaded from someone else's social
media stream.”
THE LAST WORD –
Is Trump a bigot?
As an extreme narcissist Trump thinks that
every single person – man, woman, white, black, brown, red, yellow, straight,
or gay - is below him.
Also as an extreme narcissist, if a
“non-white” or “non-traditional” man or woman, or an “affirmative” action, will
generate praise for him and feed his ego he will use that person or action to
do so.
The true danger from the Trump
Administration will be the appointed “ring (and other things) kissers” who have
their own actual bigoted agendas. Trump
is certainly not “ideological” – he has absolutely no political philosophy,
beliefs, or convictions other than “Trump is great and Trump is good”. It is his appointments who are truly
“ideological”, with personal bigoted, excessively religious right, xenophobic,
chauvinistic, and hate-filled philosophies, beliefs, and agendas, that will
cause the real damage to America, Americans, and the world.
Of course Trump’s inability to deal with
criticism and challenge like a mature adult, another symptom of his excessive
narcissism, will also do real damage to America, Americans, and the world.
This bears constant repeating. Please share
and tweet -
Trump
was a despicable human being and a dangerous narcissist before being elected.
Being elected President does not automatically endow him with morals, ethics,
or integrity where none existed before.
He has not changed, and we should not
change our disgust, disrespect, denouncement, and opposition to him just
because he was “elected” President.
TTFN
It’s that time of the year again –
time for year-end
tax planning!
Check out my 2016
YEAR-END TAX PLANNING GUIDE
Only $3.00 sent as
pdf email attachment
or $4.00 in print
form send via postal mail.
Click here for more
information.