Can you find more than five Tax Code provisions to criticize?
As April 15 approaches, some of us experience a short-lived obsession with, and resentment of, taxes. For fairly obvious reasons, those of us who put off sending in the old 1040 until the last minute tend to be those who need to accompany our returns with checks made out to the Treasury. Folks entitled to checks going the other way tended to file weeks ago.
Having to fill out lengthy government forms is bad enough. Capping off the process with a savingsectomy is enough to turn anybody into a grumpy Republican. For me, this is like being an Irishman on St. Patrick’s Day. I enjoy the company of my temporary compatriots, even though I know it won’t last long.
Pandering to this grumbling constituency this week was The Big Money, which shared a list of the five worst parts of the tax code. The fact that they could come up with only five tells me they are only seasonally grumpy. A year-round resident would have come up with at least 10.
Without further ado, here are their five nominees and my comments.
Once you ask for a payment agreement, collection efforts cease.
You finally got your tax return done and it’s ready to be mailed except for one small thing. You owe a shipload of money and have nothing in the bank. What do you do?
File anyway and send what you can. There’s a penalty for filing late in addition to the interest and penalty for not paying what’s due.
Then run to your bank and borrow against your home equity. Interest on a home equity loan up to $100,000 is tax-deductible, regardless of what you do with the money. But, what if you have no equity in your home?
Many are failing to file the proper paperwork to receive the $400 ($800 per couple) Making Work Pay credit.
Here's a tax season newsflash that's no longer news to anyone: Many Filers Confused by Stimulus Tax Credit.
I've heard this complaint all filing season from readers and tax professionals (and my own family!).
Sadly, the cliche that no good deed goes unpunished is never more evident than when Congress creates a new tax law and the IRS implements it.
Tax revenue may rise as the Obama administration sets its sights on America's 2.5 million high-income families.
By Joe Mont, TheStreet
The tax deadline is three days away, but for the 2.48 million wealthy American families, the pain of higher taxes and increased scrutiny by the government is only starting.
President Barack Obama's proposed budget lets many of the tax cuts enacted by the Bush administration expire, a move benefitting the middle class at the expense of the richest Americans. Tax increases, including those included as part of health-care reform, will hurt those earning more than $250,000 a year, defined as "wealthy" by the IRS.
High-income earners can protect themselves. Here are three major tax changes, with a longer review and action plan following.
IRS will automatically extend filing deadline to Oct. 15, but you still have to pay what you owe now.
Time is running out and you still haven’t filed your tax return.
You tried doing it yourself but every time you attempt to translate the tax form instructions they come out as a stream of incomprehensible syntax strung together without logic or meaning.
End of Bush tax cuts and additional Medicare tax will mean higher taxes, especially for wealthy. And inflation could push more into that group.
Have you seen the tax changes in President Obama’s health care bill?
Get ready to cough up a lot more to feed the federal trough.
Singles with an adjusted gross incomes of more than $200,000 ($250,000 on a joint return) will be hit by an additional 0.9% more tax on wages and self employment income. That’s your income before any deductions for medical expenses, taxes, interest, charitable contributions, casualty deductions and miscellaneous itemized expenses. That’s your income before any deductions for exemptions.
The child tax credit and other tax breaks mean more middle-class earners are paying no federal tax at all. Is that right?
As millions of us are staring down April 15, the big question we have is how do we pay Uncle Sam as little as possible?
Some folks have that answer totally figured out.
One-third of individuals who last filing season submitted a 2008 return paid no tax whatsoever, according to the Tax Foundation. The Tax Policy Center estimates 47% of Americans won’t pay taxes for 2009.
You can call, but the IRS would rather you checked online.
OK, where’s my refund? I filed early, as the IRS requested, but I still haven’t gotten my check.
If you’re in this situation, what do you do?
You can start by calling 1-800-829-1954. If you filed more than four weeks ago, call 1-800-829-4477.
But, the IRS really doesn't want to talk to you. They’d prefer you go to www.irs.gov and click on “Where’s My Refund.” If you e-file, you can get refund information 72 hours after the IRS acknowledges receipt of your return. If you file a paper return, the IRS doesn’t post refund information until three to four weeks after the return has been mailed.
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