You Think You're Paying Too Much In Taxes?

Justin here. For all its quirks, it's hard to find a better (and cheaper) place to easily track what you spend that at www.mint.com. On top of that, the Mint blog does an equally great job at relaying financial concepts in easy to understand methods; today's post doesn't disappoint.

Note that the y-axis numbers are misaligned with the chart for some reason, but the meat of the chart is still right (for those of you who don't remember, the "y" axis is the vertical axis, also known as the "yo-yo" axis because it goes up and down . . . how about that?)


Personal Finance Sofware Mint.com

Who Is Paying Taxes?

Justin here. We're getting near year-end and so taxes are on the brain. I ran across this graphic from Mint.com. They do some really great visual explanations (they recently did one on reverse mortgages) but, seeing as though my second language is "Charts and Graphs", they could probably make a diagram about paint drying and I'd be fascinated. Enjoy.


Personal FinanceSoftware – Mint.com

"Well, I'm just a bill . . .

. . . just a lonely old bill, and I'm sittin' here on capital hill. But now I'm off to the Senate where they sit and debate: adding a surtax to millionaires, an extension to unemployment pay, tax breaks for businesses and renewable energy, increasing FDIC insurance and adding a $1,000 tax credit for less affluent homeowners."

Justin here. I know that doesn't quite carry the same tune as the original Schoolhouse Rocks song, but this is a lot more complex than just "school buses must stop at railroad crossings" (no offense Bill).

Did someone say Trillion dollar deficit?

Bill Gross, by many accounts, is one of the wisest persons on the planet, at least when it comes to fixed income investing. His perspectives and explanations about plain old Main Street Economics are worth knowing; I recommend adding him to your Reader.

Gross prefaces his July 2008 Investment Outlook with this…

“Thought I would jot down this little note to President Obama. It’s a little presumptive of course; first that he’ll even be President (he will) and second that he’d read it (he won’t). But presumptiveness is an inherent requirement of an investment manager and so I shall proceed.”

If the prospect of a one Trillion Dollar Deficit by the year 2011 makes you just a little curious as to how something like that could really happen, take the next five minutes and read Bill Gross’ letter to Senator Barack Obama.

History may not repeat itself, but it does rhyme. Take a look at what happened to another nation when their deficit grew out of hand to nearly 11% of their GDP.

What you need to know about tax stimulus payments

Fellow Gate City Rotarian and helpful friend Darlene Leonard, C.P.A., of Smith Leonard, PLLC, shared this important heads up:

If you have elderly friends or relatives, let them know that they will need to file a tax return for 2007 in order to be eligible for the stimulus refund payment of $300 for individuals or $600 for a couple.

To be sure there are many elderly folks out there who do not file a return simply because they are only receiving social security benefits or have minimal income.

But they won’t get their stimulus refund payments unless they file a tax return. And unless someone like you tells them, they’re not likely to know, so here’s what you need to know:

If you normally don't have to file a tax return but have enough in qualifying income to receive a stimulus payment, more information is available in Fact Sheet 2008-16. If you qualify, all you need to do is fill out Form 1040A in a few places. A sample version of Form 1040A illustrates which lines to fill out. Click this link for a 2007 Form 1040-A (PDF) U.S. Individual Income Tax Return and click this link for instructions 2007 Inst 1040-A (PDF) Instructions. Pretty easy, huh?

Now hear this: The only guarantee I can make is that my Chief Compliance Officer will totally freak out if I do not make the following disclosure, so here goes:

Neither Jonathan Smith & Co. nor any of it’s employees (this writer included) is qualified to give tax advice, therefore nothing in or about this message, including any external internet links, shall be construed as tax advice, or for that matter, investment advice. If you need assistance, for goodness sakes, you should contact a qualified tax professional. Like the warning label on my father's chainsaw, Do Not Sharpen Saw While Motor Running, you could get hurt and you could hurt someone else if you don't know what you're doing.