My Photo

My Online Status

Blog powered by TypePad
Member since 10/2005

disclaimer

  • Disclaimer of Endorsement: Reference herein to any specific commercial products, process, or service by trade name, trademark, manufacturer, or otherwise, does not necessarily constitute or imply its endorsement, recommendation, or favoring. Disclaimer of Hyperlinks: The appearance of external hyperlinks does not constitute endorsement by the author of the linked web sites, or the information, products or services contained therein. The author does not exercise any editorial control over the information you may find at these locations. All links are provided with the intent of meeting the mission of the Ask Uncle Bill blog site. Please let me know about existing external links which you believe are inappropriate and about specific additional external links which you believe ought to be included. Disclaimer of Liability: With respect to information, advice or recommendations available from this blog, the author makes no warranty, express or implied, including the warranties of merchantability and fitness for a particular purpose, or assumes any legal liability or responsibility for the accuracy, completeness, or usefulness of any information, apparatus, product, or process disclosed, or represents that its use would not infringe privately owned rights. The author is not responsible for the content of any "off-site" web pages referenced from this site.

« Gotta Go | Main | The Taxman Cometh »

Saving On Taxes

This is the time of year when the newspapers, magazines and web sites are full of 'tax tips' and overlooked deductions.

Here is one you don't see--DO IT YOURSELF.  Or as in my family, have your dad do it.  I was getting a bit peeved about being the in-house tax service when I realized that doing so meant my kids were working, producing income and off the payroll.  I'm more than  glad to do their taxes. 

And you should be glad to do yours because they aren't that hard.  And if you think those guys down at H&R Block know what they are doing, think again.  They are taught to run the computer program and that is about it.  I know this for sure because I, once, for some reason took the H&R Block training program and scored a 98%.  The average grade was about 70% so I know those guys in the office aren't down there splitting atoms. 

Which is why you should do your own taxes--you probably know more about computers than the guys at H&R Block. 

So go get the program--either Turbo Tax or Tax Cut.  I use Tax Cut because it is cheap--$15 after rebates.  Just follow step 1, then step 2, step 3 and so on.  They will even tell you what paperwork to have handy which is the following-

1)  A copy of your 2005 tax return for reference purposes.

2)  w-2s from all employers.

3)  Your 1099s which come from Fidelity, Vanguard and so on showing your interest income and dividend income.

4)  Amounts you paid for state and local taxes, real estate taxes, and personal property taxes.  These amounts will be deductible if you can itemize which most of you cannot at this stage of your life.

5)  Home mortgage interest and points contained on Form 1098.

6)  Reciepts for donations to charitable contributions--cash and non cash.  These are deductible IF you itemize which, as noted earlier, most of you don't.  If you don't itemize and thus cannot deduct your contributions, you can thank Bill Clinton.

The rest will probably not apply to you at all but I'll include them just to cover all the bases.

7)  Income receipts from any rental properties or royalities.

8)  Records of unemployment compensation or Social Security income.

9)  Records of medical and dental expenses if think you can hit the 7.5% exclusion required for this deduction.

10)  Documentation of casualty and theft losses.

See, I told you the last four wouldn't count.  Probably not the  last seven because you are plain vanilla at this point--wages and taxes.  That is about it.

But you can save by not paying somebody to do your taxes.  Go to Office Depot and buy the program and fill out the forms.  Mail it or e-transfer it in.  Don't get excited about the refund--if you get a big one, change your withholding and quit making an interest free loan to the government. 

But here is the one reason why you probably won't do your own taxes--people don't want to see how much they make--gross income and then how little they take home--net income.  It is rather depressing but do it anyway.  You are still going to pay the same amount except you won't be paying H&R Block.

Final note--if you want tax deductions or tax relief, start your own business.  Working for the man does not include a lot of tax relief.

TrackBack

TrackBack URL for this entry:
http://www.typepad.com/services/trackback/6a00d8341c2eb753ef00d83432f38853ef

Listed below are links to weblogs that reference Saving On Taxes:

Comments

Don't have health insurance and need to buy your prescription drugs, save with free prescription consultation and the lowest prices online at www.DrugsHome.Com, we are online since the year 2005, orders are shipped overnight with FedEx and have 24/7 live chat and toll free customer service. You can visit our website at http://www.drugshome.com

Thank you very much for the information I really appreciate it!!

How i may contact admin this site? I have a question.
iijiivei

Nobody is a stranger to the word viagra. Buy Flomax Online Even the children have heard of it, though they may be unaware of its meaning. Keeping in pace of its increasing demand which resulted from its phenomenal success in treating ED, even the online pharmacies started dealing in Viagra Buy Premarin Online. One can now easily buy viagra or order viagra online. Ever since the day of introduction of viagra online, it has been like a blessing to both the online pharmacies and the customers. Buy Nexium Online The online pharmacies are reaping huge profits and the people are getting Buy Prilosec Online the worlds most sought after drug at their doorsteps that too at a cost relaxation.

It is never okay to lie, sometimes okay to lie

meu site... queria que avaliassem e dessem opinioes!

More or less nothing seems worth thinking about. Not much on my mind today. Today was a total loss. My mind is like a bunch of nothing, but maybe tomorrow. So it goes. I just don't have much to say recently, but whatever.

Buyers of guns must take gun-safety courses

My life's been basically boring recently. I've basically been doing nothing to speak of. That's how it is. I just don't have much to say recently. Oh well.

LÒinteret du forum est precisement de susciter un debat parmi les citoyens pour que le budget et les choix quÒil sous-tend soient places au c?ur du debat public. Un budget, ce sont des choix. Des choix supposent des priorites.

If you are losing your hair, you know that the process doesn't simply affect the way
you look; it can also affect the way you feel about yourself.

Hair Loss Product

This is an age when people are growing more and more health conscious and are becoming more aware about their bodies. The health info sites on the internet are the best guides to these kinds of people.

Verify your Comment

Previewing your Comment

This is only a preview. Your comment has not yet been posted.

Working...
Your comment could not be posted. Error type:
Your comment has been posted. Post another comment

The letters and numbers you entered did not match the image. Please try again.

As a final step before posting your comment, enter the letters and numbers you see in the image below. This prevents automated programs from posting comments.

Having trouble reading this image? View an alternate.

Working...

Post a comment

GoogleAdSense

  • Adsense3
  • Adsense2
  • AdSense