Posted in Tax Tips on February 1, 2008| Leave a Comment »
Tax Preparation Tip #5: Move to a “No Income Tax” state. No tax, no forms! It couldn’t be easier! Sure, there’s a one-time hit on the Federal taxes when you have to detail your moving expenses, but it’s a smart long-term move.
Would if I could… and try to find a milder winter too.
Posted in Tax Tips on February 1, 2008| Leave a Comment »
Tax Preparation Tip #4: Withhold way more than you need to. This is a two-fer. It ensures that you will get a nice, fat refund after your interest free loan to the Government (See Tip #2 for the benefits of not earning interest) for you and the spouse to spend (See Ancillary Tip #2b), and it will ensure that you do not have to make estimated payments for the next year.
Uncle Sugar likes his crack cocaine, and isn’t willing to wait a year for it. Not only will you have to write a check every three months, but you will also get to fill out yet another form detailing that you did. That’s a lose-lose situation if I ever saw one. Better to let the Uncle spend your excess withholding, then go further in debt paying you back at the end of the year. It’s the PayDay Loans model of governance!
Posted in Tax Tips on February 1, 2008| Leave a Comment »
Tax Preparation Tip #3: Don’t give to charity. The paperwork is a mess. You can salve your conscience far more painlessly simply be realizing the a large portion of the dollar amount listed in Box 63 of the Form 1040 is, in fact, going to various corporate and lower income charities. Some large percentage of filers actually pay nothing and receive money back in the form of tax credits. If you simply must make charitable contributions, do it in a lump sum.
Do not do what I did, which was to make 20 individual contributions through the year, only two of which went to organizations that returned supporting paperwork. The rest required detailed and unprovable documentation. Helllooooo Auditors!
Posted in Tax Tips on February 1, 2008| Leave a Comment »
Tax Preparation Tip #2: If you can’t follow the advice in Tip #1, then use Tip #2: Don’t make any complicated money.
Definitions:
– Complicated Money: money that comes from anything other than straight wages. This includes, but is not limited to, money earned through interest or dividends (see Ancillary Tip #2b), sales of stocks or bonds, or any other type of investment income.
Ancillary Tip #2b: Spend it all. Don’t save any of it, and don’t invest any of it. Just spend it all. Also, spend it in-state. (See “Use Tax, and How to Blatantly Ignore it“)
Posted in Tax Tips on February 1, 2008| 1 Comment »
Tax Preparation Tip #1: Don’t make any money.
The Papa Golf Chronicles 