Earned Income Tax Credit (EITC) Information

How to Pay Zero Taxes by Jeff A. Schnepper

Fully updated to include all the latest tax law changes, How to Pay Zero Taxes outlines the easiest, most practical strategies you can use to lower your taxes this year, next year, and beyond. From converting personal expenses into business expenses to avoiding or surviving an IRS audit, Jeff Schnepper's guide comprehensively covers more deductions than any other tax book, all conveniently organized in six fast-access categories: exclusions, credits, “above-the-line” deductions, “below-the-line” deductions, traditional tax shelters, and supertax shelters.

Jeff A. Schnepper is the author of several books on finance and taxation, including How to Pay Zero Estate Taxes and all twenty-four previous editions of How to Pay Zero Taxes. He is a financial, tax, and legal advisor to the Transamerica sales force and runs a full-time accounting and legal practice in Cherry Hill, New Jersey. Mr. Schnepper is Microsoft's MSN MONEY tax expert, an economics editor for USA Today and is tax counsel for Haran, Watson & Company.

     

Earned Income Tax Credit (EITC) Information - Sales Tax Deduction

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Earned Income Tax Credit (EITC) Information * Sales Tax Deduction

How Can Sales Tax Save You Money?   
Steve Dolan

It's that time of the year again... tax time! It may not be one of the more enjoyable times of the year, but it is definitely one of the more important dates on the calendar.

Hopefully, you have listened to all the advice and have started planning in advance. If so, you probably already know that the government has introduced a new way for you to lower your federal taxes, maybe even dramatically lower your taxes; you now have the choice to claim your state sales tax to lower your taxable income on your federal tax return.

Article to continue below----------------------------------------------

Let Bush Tax Cuts End, Economists Say (Fox News)
NABE economist said Congress should let the Bush tax cuts expire.

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Deducting your sales tax in the US


While you used to be able to deduct amounts paid in state sales tax, Congress took it off the books in the Tax Reform Act of 1986. Thanks, Congress. Fortunately, it is now back. Depending on your specific circumstances and where you live in the US, this could be extremely important for your tax planning.

Article to continue below----------------------------------------------

Tax Tips For The Unemployed (CNN Money)
Tax time can be a painful time for many of us, and it's especially tough for people without jobs. If you're unemployed, there are a few twists and turns in the tax code that can work to your benefit.
NY Governor Rejects Reimposing Stock Transfer Tax (Reuters Via Yahoo! News)
New York state should not reimpose a stock transfer tax as this would make Wall Street firms move to other cities such as New Jersey's Newark, or other states like Connecticut, Governor David Paterson...

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Deducting your state income tax vs. state sales tax


The change in the law means you now have the choice between deducting your state income tax vs. your state sales tax. No matter what you choose, however, you have to first decide to itemize your deductions. Instead of going through the process of itemizing your deductions, the IRS gives you the opportunity to take a pre-determined deduction from your taxable income, based on your income level and state of residence. According to the IRS, most people will simply chose the pre-determined number - as many as 66% of all tax payers take the easy way out. For some people, the pre-determined numbers is going to be the better choice. A lot of the people who choose the pre-determined deductions, however, are doing so for the sake of simplicity. Plan ahead and make sure you are picking the best option before signing on for the pre-determined deductions.


The ability to deduct amounts paid in state sales tax could significantly lower the amount of money you end up paying in income tax, or at least lower than what you would pay under the pre-determined deductions. This ability is particularly important if you live in one of the few states - Wyoming, Washington South Dakota, Tennessee, Florida, Texas and Nevada - where there is no state income tax. Previously, if you were a resident of this state you could not claim any state tax deductions. Now, thanks to the new rules, if you are a resident of one of these lucky states you can now claim their state sales tax to reduce their taxable income on their US tax forms. When will you be better off deducting your state sales tax? If you have made any significant purchases - such as a car, a boat, an airplane, luxury items or major events such as a wedding - the sales tax you paid last year could be more than you paid in state income taxes.


Save your receipts!


The most important thing to get your finances in order is to start planning for tax time now. The ability to deduct amounts paid for state sales tax will only be useful if you have the receipts to back your itemizations up. Make sure you hold on to receipts for your expensive items, and fight the natural instinct to take the easy way out and select the pre-determined deduction. If you have paid a lot of state sales tax in the US, this is your chance to pay less tax to the federal government.



Steve Dolan has the good fortune to be married to a CPA so out of death and taxes he has one covered. Find out about sales tax issues at Sales Tax and Save Taxes and for general tax info go to Tax and Taxes

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Who are the CPA Moms?      Your Tax Professional Forever!!!!

“CPA Moms - Tax Moms - EA Moms" are trade names given to Accounting and Tax Professionals who chose to work in an “relaxed” environment. Some "Moms" work from home, other work from personal offices. Not all are Moms, there are some Dads. We call them Mr. Tax Moms. CPA Dads or Enrolled Agents Dads.
Each Mom is independent. Once a client starts working with a Mom, the client will keep the same “Mom” year after year regardless of where the client moves or relocates. Being in a “relaxed” environment has many advantages. Lower overhead, faster response time, more availability, etc.
To be a member a CPA Mom, Tax Moms, or an Erolled Moms the Tax Professional must ALWAYS be in good standing with their state licensing agency, experienced, and must demonstrate a high level of ethics, professionalism and proficiency.
Tax Net Inc, the parent company for all CPA Moms, Tax Moms and Enrolled Moms, developed the marketing and on-line systems to help qualified Tax Professionals who "choose" work from their “relaxed” environment and offer better service at a lower price to the consumer.
Since the “Moms” do taxes and accounting of all complexities, there is always a Mom available for every level of work. Since each Mom has a private 800 number, you are just a phone call away, regardless of where you live.
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Index of Articles about Taxes

What Other Authors say about Taxes

Advice on Internal Revenue Service Audits by Roni Deutch

It is important to keep in mind that the IRS computer system selects the returns that are audited, not human employees. The computer system selects returns that are likely to yield the most money to the...

When To Use A Tax Attorney by Carl LaFresnaye

While most people would not require the use of a tax attorney, those who own their own businesses or who have a multitude of assets are wise to consult a tax attorney. In addition to the accountant that...

Do You Know When To File A Tax Return? by Ken Snowie

Every year, millions of Americans dread the inevitable; they have to gather all of their receipts and records and get ready to file their Federal Income Tax Returns. When was tax season first initiated?...

Deciding when to File a Tax Return? by Keith Hoyng

April 15th - "The Day of Reckoning"! Every year, millions of Americans get ready to pay taxes to Uncle Sam, or get ready to collect a tax refund from Uncle Sam; when did this become the great day that...

A Guide To Tax Forms by Carl LaFresnaye

Looking at the Internal Revenue Service's website (www.irs.gov) can be a bewildering experience. A vast array of tax forms greets you and figuring out which ones to use can be a chore. This guide is designed...

All About Late Filing Of Federal Taxes by Carl LaFresnaye

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