I have a Favicon!

  Just a quick note, I finally have a favicon for me site…and an animated one at that. (Take a look up in the address bar if you don’t know what I am talking about!)

If you want a favicon, you can create one for free at chami.com.

Choose the Right Filing Status

Your federal tax filing status is based on your marital and family situation. It is an important factor in determining whether you must file a return, your standard deduction and your correct amount of tax.

Your marital status on the last day of the year determines your status for the entire year. If more than one filing status applies to you, you may choose the one that gives you the lowest tax obligation.
There are five filing status options:

1. Single. Generally, if you are unmarried, divorced or legally separated according to your state law, your filing status is Single.

2. Married Filing Jointly.  If you are married, you and your spouse may file a joint return. If your spouse died during the year and you did not remarry, you may still file a joint return with that spouse for the year of death.

3. Married Filing Separately.  Married taxpayers may elect to file separate returns.

4. Head of Household.  You generally must be unmarried and you must have paid more than half the cost of maintaining a home for you and a qualifying person.

5. Qualifying Widow(er) with Dependent Child. If your spouse died during 2005 or 2006, you have a qualifying child and meet certain other conditions; you may be able to choose this filing status.

For more information about filing status see publication 501, Exemptions, Standard Deduction, and Filing Information available on the IRS website at IRS.gov or by calling 800-TAXFORM (800-829-3676).

Remember that for the genuine IRS Web site be sure to use .gov.  Don’t be confused by internet sites that end in .com, .net, .org or other designations instead of .gov. The address of the official IRS governmental Web site is www.irs.gov.

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What Comes After the Holiday Season? Tax Season!

Now is the time to take a look at your business and see if there is anything you can do to save money on your taxes for 2007. Once January 1st hits it may be too late for many of these tax saving ideas.Get Your Books In Order
Set up an appointment with your accountant and make sure everything is together. If you wait until the last minute you may forget something and potentially lose the deduction forever.

Defer Your Income
Put off as much as you can until 2008. Give your clients a Christmas present, and another 30 days before you send the bill. Next year the tax rates will be indexed for inflation and you will pay less tax.

Accelerate Your Expenses
Use credit cards to get the expense deduction while making the payment in 2008. Pay your bills early, and see if there are any large purchases you need to make.

Look at Your Investments
Did you sell stock this year and make a profit? Now is the time to see if you need to sell a few losers. You can write off all of your capital gains plus up to another $3,000 in ordinary expenses with capital losses. Just don’t buy back the same stock within 30 days.

Set Up and Contribute to Your Retirement Account
You’re not losing anything, you are just putting it away until later. You probably won’t miss it anyway, so max out your retirement account.

Make Full Use of the 179 Deduction
This year small businesses can take an immediate $112,000 deduction for purchases of equipment and software that would otherwise need to be depreciated. Whatever you don’t use this year is gone forever.

Keep Track of your Mileage
And finally, if you have a vehicle that you use part for business and part for personal, you need to keep track of your mileage. Make it a new family tradition, on New Year’s Eve, when the clock strikes twelve and the shiny ball drops, kiss your honey and then go run out and get the odometer reading off of your car. Your going to need it for next year!

Happy Holidays and a Prosperous New Year!

Tax Quotes

Did you ever notice that when you put the words “The” and “IRS” together, it spells “THEIRS?” ~Author Unknown

Intaxication: Euphoria at getting a refund from the IRS, which lasts until you realize it was your money to start with. ~Author unknown, from a Washington Post word contest

Unquestionably, there is progress. The average American now pays out twice as much in taxes as he formerly got in wages. ~H.L. Mencken

Why does a slight tax increase cost you two hundred dollars and a substantial tax cut save you thirty cents? ~Peg Bracken

Taxation withrepresentation ain’t so hot either. ~Gerald Barzan

Over and over again Courts have said there is nothing sinister in so arranging one’s affairs as to keep taxes as low as possible. Everybody does so, rich and poor, and all do right, for nobody owes any public duty to pay more than the law demands. Taxes are enforced exactions, not voluntary contributions. to demand more in the name of morals is mere cant.
~Honorable Learned Hand, US Appeals Court Justice

“Worried about an IRS audit? Avoid what’s called a red flag. That’s something the IRS always looks for. For example, say you have some money left in your bank account after paying taxes. That’s a red flag.” ~Jay Leno

Don’t you long for the good old days when Uncle Sam lived within his income and without most of yours?