Tax Freedom Day

This year Tax Freedom Day arrived on Wednesday, April 23, 2008. What is tax freedom day? That is the day that Americans stop working for the government, and start working for themselves. Just think about it, all the money that you have earned up until last Wednesday, went to pay taxes. Not just federal income taxes, but state income taxes, payroll taxes, corporate taxes, sales taxes and property taxes.

Every year The Tax Foundation calculates Tax Freedom Day. They ask “What price is the nation paying for government?” The answer is shocking. Americans pay more for taxes than for food, clothing and housing combined. About 33% of all income goes towards maintaining the government.

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You Won’t Be Getting a Tax Rebate Check

Henry Paulson, the Unites States Treasury Secretary announced on Friday that Congress has approved the $167 billion, debt financed, Economic stimulus package, and that the IRS will be working through the tax season in order to send out the “rebate” checks starting in May of 2008. I hate to break the news to everyone, putting … Read moreYou Won’t Be Getting a Tax Rebate Check

Entrecard and Taxes?

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I’ve just recently become involved with Entrecard. Entrecard is a networking site for bloggers that involves “dropping” your card on websites and having cards dropped on yours. Sort of like the calling cards of old. I have found Entrecard to be a great marketing tool and it has already brought tons of traffic to my site.

Thanks to Entrecard I have also found plenty of interesting sites that I might never have found otherwise! I’ll be featuring some of them in another post, in my newly added Off-topic category!

Now on to taxes. At Entrecard you earn “credits” (some are now calling them entrecredits) by dropping your card on sites, and by selling ads on your site. You can then use those credits to buy ads on other sites. Simple enough so far. But a whole economy is springing up where people are buying and selling other goods and services using entrecredits. Today people are selling advertising, web consulting, and even cookie recipes using entrecredits. That brings up an interesting question, are these taxable events? Do the sellers need to report taxable income when all they have received are entrecredits? The answer is a surprising probably!

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Tips for Choosing a Tax Preparer

If you pay someone to prepare your tax return, choose that preparer wisely. Taxpayers are legally responsible for what’s on their own tax returns even if prepared by someone else. So, it is important to choose carefully when hiring an individual or firm to prepare personal returns. Most return preparers are professional, honest and provide excellent service to their clients. Here are a few points to keep in mind when someone else prepares your return:

  • A Paid Preparer is required by law to sign the return and fill in the preparer areas of the form. The preparer should also include their appropriate identifying number on the return. Although the Preparer signs the return, you are responsible for the accuracy of every item on your return. In addition, the preparer must give you a copy of the return.

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