paying taxes

A Tax Increase

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We're heading into the official start of tax season and this year Uncle Sam wants just a little bit more.

For millions of Americans the first thing they will see when they visit the tax man is a tax increase. This year about twelve million workers will be hit with an automatic adjustment in their payroll taxes. And for the first time in 34 years the amount of income subject to be taxed is 7.3%. That tax could cost you as much as $534, more if you're self-employed.

So what's behind the increase? The social security taxable minimum is adjusted based on U.S. wages and not consumer prices. Accountants say the sudden hike is two years of wage gains packed into one. So as wages go up so does the amount the government can tax you.  read more »

Tax Cheats

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The tax deadline has come and gone and chances are not everyone paid up.

A new report from the IRS says that most of the people who refuse to pay Uncle Sam reside in the country’s wealthiest areas. And the biggest offenders can be found in Los Angeles, San Francisco, Houston, Atlanta and Washington, DC.

The study also says that the most common offenders are the owners of construction companies or real estate offices where annual income is easy to under-report. The IRS says it’s much harder for people whose companies take taxes directly from their paychecks to cheat the system. And that bad karma will come back around.  read more »

A Bitter Berlin

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Twenty years ago the world celebrated as the Berlin wall came tumbling down. But now some Germans want the bricks put back together.

According to a new survey one in seven Germans want the Berlin wall back, saying they were better off when the country was divided. The survey of a thousand now-unified Germans shows 15 percent of the country’s 82 million citizens long for the old days of two Germanys. This revelation comes just weeks ahead of the twentieth anniversary on the fall on November 9th.  read more »

Tax Myths Busted

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Spring has sprung, meaning its tax time but this season is painful enough without paying more than you owe. So beware the tax myths that could cause you to empty out the piggy bank.

Jeff Schnepper, a former Professor of Taxation, Accounting and Finance and author of “How to Pay Zero Taxes” has compiled a list of five tax myths that can cost you money. Schnepper says from Santa Claus to the Tooth Fairy our culture is full of myths, and in the world of taxes these myths can cost you big bucks if you don’t know the rules.  read more »