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Yes, we had two extra days this year before your tax bill was due. Even with two extra days, it is still painful. Make sure it is postmarked by April 17 at midnight. Need a playlist to help numb off the sting? If you are working late on your taxes, here is some music to keep you motivated: - Taxman by the Beatles - Money by Pink Floyd - It’s Money that I Love by Randy Newman - Take the Money and Run by the Steve Miller Band - Tax Free by Jimi Hendrix - Who Will Buy My Memories by Willie Nelson - Taxman, Mr. Thief by Cheap Trick - I Want to be a Billionaire by the cast of Glee - Mo Money Mo Problems by the Notorious B.i.G. ft. Mase & Puff Daddy - Sweetest Girl by Wycliff Jean - If I had a Million Dollars by Bear Naked Ladies - Take this Job and Shove It by David Allen Coe

We filed our taxes this week. The picture on the wall of our tax preparer’s office included the quote: “When the first 1% income tax rate was being debated in 1913, a U.S. Senator opposed to it stated, "If they get away with 1% today, some day it may be raised to as high as 5%!" How lovely would it be today to be capped at 5%? We would even be excited to cap at a certain ex-governor’s 15% if fairly distributed to all tax payers, whether their earnings were by way of nursing a patient bedside or from long-term capital gains. We know that paying taxes is our legal obligation. And we believe it is a social responsibility to pay taxes to support the common good – our roads, street lights, schools, libraries, fire fighters, and so on. But it is a bit painful to see all in one lump sum the amount of our ‘giving’ to the government for the past year. In the words of Scottish whisky distiller Lord Thomas R. Dewar (1864–1930) “ The only thing that hurts more than paying an income ta...

On a recent trip to visit our son in the Army stationed in Italy, I started to think about the "underground economy," Greece and their debt problems, and taxes. As we were purchasing items, most if not all places prefers cash (Euros) then take a credit card. Some places even charged you 10% more if you used your credit card. Now I'm sure some of this is to offset the credit card fee but I wonder how many sales do not get reported for tax purposes. Greece is, in part, in trouble because of an underground economy that deals in cash and where income is not reported to the government. As they implement their austerity measures and cutbacks, have they increased their tax collections and increased reported income? Would they need to cut back as much if everyone, and I mean everyone, reported their income? This may be against their culture and custom, but the Greek government needs every Euro it can get to provide services and pay down its debt. The same is true in the United St...

From Guest Contributor Ila Zimmerman For the last 10 years I have prepared tax returns on weekends for a couple hundred clients. No matter how much income individuals make, they always welcome a tax refund and scorn paying more taxes. The tax refund is like a gift from the government even though it is your money. If you want to make every frugal penny count, calculate what your tax liability is going to be and make sure you are withholding just enough each paycheck to cover your tax liability. The government provides the W-4 form and instructions to help you project your withholdings for the year. Withholding more than your liability is simply letting the government use your money for free instead of you earning interest on it. When I don’t see the money in my paycheck, it’s much easier not to spend it. To get a chunk of money all at once seems to have lots of possibilities. With your tax refund, you might be able to invest in an IRA and save yourself a little more. Or maybe you can p...

As we rush around getting last minute gifts, we should also be mindful of the end of the year for tax reasons. Here are a few items to check off your list before 2012 rolls around. - Last Minute Charitable Contributions: Time to get in the last minute charitable contributions for the 2011 tax year. Is it time to clean out your closet and make a donation to Good Will? Can you afford to give a little extra to a charitable cause? It has been a rough few years for a lot of people and your donation may be just what your favorite charity needs to help those in need. -  Unreimbursed Medical and Dependent Care Accounts : These are your "use it or lose it" accounts. You have to use the money by the end of the year or you forfeit your balance. If you have money in these accounts, maybe it is time to get your eyes checked or a new pair of glasses. Make sure you have paid all of your dependent care expense and that your balance is zero.   - 529 or Educational Savings Deposits: In some ...

Do you know what would have happen if we followed a federal balanced budget amendment?   We would all be speaking German.   Deficit spending allowed the federal government to finance World War II by selling “war bonds.”   Our nation’s monetary policy allows the government to borrow (by selling bonds) to finance necessities and to smooth out the ups and downs of natural business cycles. The deficit Super Committee deadline is Monday, November 21 st , 2011. As the committee meets, I hope they are listening to some of those in the 1% who say they would not mind paying their fair share in taxes. I hope they listen to the 99% who want to see fairness in the tax system. I hope they listen to the majority of economist who say we should be borrowing and investing in infrastructure. Let’s think about it for a minute. We borrow money to fix our roads, bridges, schools, and dare I say, Internet, so all would have access to the World Wide Web via high speed connection.   We brid...

Okay, so I have my MBA in finance and I know that we should have our tax withholdings set from each paycheck so that come April 15, we still owe $1,000 or more on taxes. My propblem is that I really like getting a tax refund. Financially I know that if we get a tax refund, we have just given the government an interest-free loan. We could have invested the money or paid off debt instead of having a “forced savings of 0%” by overpaying taxes. If we owe money come tax time, I REALLY dread doing my taxes, put it off until the last minute, get moody and am generally no fun to be around. I feel that the government is taking way too much of my salary for taxes and look for every possible deduction that I can find.  When I know that I’m getting money back on my taxes, I look forward to getting them done to see how much I get back. I’m in a much better mood and feel good that I’ve done my civic duty of paying taxes. I then put the money towards debt reduction, investing, savings or vac...

The holidays are here and it’s a time of gathering family and friends. Do you feel that itch for a bigger homestead? Tax incentives make the jump even more enticing. On 11/6/2009, the homebuyer credit was expanded. Under the new law, you may be eligible for up to an $8,000 credit if you purchase a home in 2009 or enter into a binding contract to buy a principal residence before May 1 of 2010 and close by June 30, 2010. For qualifying purchases in 2010, you have the option of claiming the credit on either your 2009 or 2010 tax return. The new law opened up the credit to long-time homeowners buying a replacement principal residence as well as raised the income limitations. The full tax credit is available to taxpayers with modified adjusted gross incomes (MAGI) up to $125,000, or $225,000 for joint filers. Those with MAGI between $125,000 and $145,000, or $225,000 and $245,000 for joint filers, are eligible for a reduced credit. For more detail on eligibility and how to take advantage of...

Do holiday trips and gas prices get you thinking about a new ride? There are a few tax advantages you may want to consider under the American Recovery and Reinvestment Act of 2009 when looking at your new vehicle options: 1. Plug-in Electric Drive Vehicle . Purchasing a plug-in, 4 or more wheeled electric drive vehicle after 12/31/2009 can earn a tax credit between $2,500 and $7,500, depending on the battery capacity of the vehicle. 2. Low Speed Plug-Ins . Certain low-speed electric vehicles and two- or three-wheeled vehicles can earn a credit of 10% of the cost of the vehicle (up to $2,500) for purchases made between 2/18/2009-12/31/2011. 3. Conversion Kits. You can earn a tax credit of 10% of the conversion cost (up to $4,000) for converting a vehicle to a qualified plug-in electric drive motor vehicle between 2/18/2009-12/31/2011. A taxpayer may claim this credit even if the taxpayer claimed a hybrid vehicle credit for the same vehicle in an earlier year. 4. Lowering Alternative Mi...