Taxes

You know the saying, nothing is certain but death and taxes. Well, we can't help you with the first one, but here you'll find all the latest tax planning news, advice and calculators you need to help you with the second.

Learn how to maximize the money you keep in your pocket without setting off red flags to the IRS.

Stay on top of today's top tax news and take advantage of expert advice.

NYC's $11 cigarettes mean it's time to quit

Linda Doell Jun 23rd 2010 @ 12:30PM EST Filed Under: Tax, In the News

With the New York legislature approving new taxes on tobacco products as part of a emergency state spending plug this week, the average cost of a pack of cigarettes in New York City could go to $11 starting July 1 -- the highest in the country.

The tax on smokeless tobacco also is going up to $2 an ounce, The New York Times is reporting. Other taxes including those on cigars and dips also is going up. In addition, the state also wants to start collecting taxes on cigarettes sold to visitors on Indian reservations.

While some smoking cessation proponents hope that higher taxes mean people will quit smoking, not everyone's convinced that will happen.

Tamara Leach, the tobacco recovery program director at the nonprofit Lifespan, says it depends on a smoker's resolve. "Addiction is strong. If people don't want to quit, they won't -- bottom line," Leach told the Rochester Democrat and Chronicle.

In a blog post in May, CigarettePriceWatch criticized such taxes because they single out smokers. "Fairness to smokers isn't important to them."

If California legalized pot, smokin' hot income would follow

Tom Barlow Jun 21st 2010 @ 11:00AM EST Filed Under: Make Money Fast, Tax

If California is going to pot during the recession, just how much cash could it wring out of pot? Mint.com took a look at the income potential to the state if it totally legalized marijuana. The cash infusion could be, like, high as a kite, dude.

To see the infographic in a larger format, click on it and you'll be taken to the original at Mint.com.

Today's tax burden much lower than 30 years ago

Tom Barlow Jun 18th 2010 @ 2:15PM EST Filed Under: Tax, 101 taxes

One thing most Americans can agree upon is that taxes are just too darned high. Our forefathers and foremothers didn't have to put up with such a problem, did they?

Well, yes they did, according to this illuminating infographic courtesy of our friends at Mint.com. Click on the graphic to see it in a larger size on Mint.com.

Personal Finance Sofware Mint.com

Do celebs influence tax policy?

Kelly Phillips Erb Jun 18th 2010 @ 10:00AM EST Filed Under: Tax, Celebs & Money

When Clark Gable famously took off his shirt in the 1934 film, It Happened One Night, to reveal a bare chest, sales of undershirts reportedly dropped. Gable's apparent fashion statement proved the power of celebrity. Ever since, trends inspired by the rich and famous have shaped our lifestyles. If Jennifer Aniston wears it, we rush out to find a knock-off. If Oprah recommends a book, we buy it. But is the same true of politics and taxes? Are we influenced as much by celebrity political and tax trends as we are fashion trends?

Clearly most Americans don't have the resources to imitate the fiscal lifestyles of celebrities. While we may not be structuring our finances to be like Donald Trump, the tax lives of celebrities may get us talking ... about tax.

Consider the the little-touted tanning tax. The 10% excise tax on tanning services was included as part of the recent health care reform bill. Even though the tax was given the thumbs up from the American Academy of Dermatology Association (AADA) and the American Medical Association (AMA), it didn't receive much press until reality TV star Snooki had tongues -- and tweets -- wagging.

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What's the tax on Oprah's iPad and $10,000 check for 'O' Magazine?

Kelly Phillips Erb Jun 17th 2010 @ 2:21PM EST Filed Under: Tax, Career, Celebs & Money

These days, reaching your 10th anniversary in business is a big deal (trust me, my law firm just turned 10). Most companies celebrate by handing out pens, chocolates or other trinkets to their employees. But O, the Oprah Magazine, isn't most companies. It's a media powerhouse run by one of the most influential and wealthy women in the world. So you can pretty much count on Oprah to do something big to mark the occasion -- and this year, she didn't disappoint.

On Tuesday, Oprah stopped by the magazine to thank her employees. And she left a little something behind: an Apple iPad, a leather iPad case with the staffer's initials, and a check for $10,000 for each employee. The gifts were given regardless of how long the employees had worked for the company. Awesome, right?

In January 2011, each employee will get another gift from Oprah: a form W-2 reporting the value of those gifts. The total value of the gifts was approximately $11,000, which includes the check, the iPad (valued at between $500 and $800) and the case (similar cases retail for about $80). That amount must be reported as taxable income to the employees.

I know what you're thinking ... but it was a gift, right? It doesn't matter.

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Continue reading What's the tax on Oprah's iPad and $10,000 check for 'O' Magazine?

5 things you can do now to get ready for huge tax hikes in 2011

Kelly Phillips Erb Jun 11th 2010 @ 8:00AM EST Filed Under: Tax, Tax - Advice

In less than six months, taxes for many Americans are going up. Tax cuts originally signed into law by former President Bush are set to expire at the end of 2010 unless Congress makes a change in the Tax Code. Unfortunately for taxpayers, 2010 is also a significant election year, which, if history has taught us anything, means that Congress is unlikely to do much at all. If the law stays the same, on January 1, 2011, you can expect that the highest federal income tax rate for individuals will increase to 39.6% from 35%; capital gains tax rates will rise to 20% and dividends will lose their tax favorable status and retreat back to ordinary income status.

Even worse, state and local governments are struggling to make budgets balance. A whopping 45 states reported receiving less revenue in 2009 than in 2008, a trend that states can't sustain in 2010. Last year, at least 10 states considered major tax increases and others sought to increase or expand the tax base by hiking sales taxes or imposing excise taxes on such items as cigarettes and soda.

How can you avoid extra hits to your wallet in 2011? Here are five tips to consider:

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Al and Tipper Gore's inconvenient divorce means their finances will be affected

Kelly Phillips Erb Jun 2nd 2010 @ 7:00AM EST Filed Under: Tax, Celebs & Money

An inconvenient divorce: How will this affect Al and Tipper Gore's finances?

There was no tell-all article in a national gossip magazine. No racy photos. No whispering about an unexpected pregnancy. Just an e-mail.

After 40 years of marriage, Al and Tipper Gore announced they were calling it quits. The e-mail that announced their split said simply:

"After a great deal of thought and discussion, we have decided to separate. This is very much a mutual and mutually supportive decision that we have made together."

Al Gore, 62, and Mary "Tipper" Gore, 61, had been married since May 19, 1970. Their love story became political history after the couple shared a now famous kiss at the 2000 Democratic National Convention.

Continue reading Al and Tipper Gore's inconvenient divorce means their finances will be affected

Wesley Snipes' tax adviser found guilty ... again

Kelly Phillips Erb May 30th 2010 @ 8:00AM EST Filed Under: Tax, Celebs & Money

My mom always said that you are judged by the company you keep. If that's the case, then Wesley Snipes needs to find a better group of people with which to associate.

Eddie Ray Kahn, who advised the actor on financial matters, was found guilty last Wednesday of conspiracy to defraud the United States and to commit mail fraud. Kahn, the founder of Guiding Light of God Ministries and American Rights Litigators, was indicted in 2006 on charges related to promoting tax evasion schemes. He fled to Panama, where he was subsequently detained and returned to his home in Florida (the U.S. has an extradition treaty with Panama).

Kahn's most (in)famous client, actor Wesley Snipes, was previously indicted for allegedly claiming more than $12 million in fraudulent refunds and not filing any tax returns for several years. He was found guilty of failing to file tax returns from 1999 to 2004 and was sentenced to the maximum three years in federal prison. Snipes is currently out on bail, pending an appeal in his case.

Continue reading Wesley Snipes' tax adviser found guilty ... again

Paying TV productions to shoot in your state may be money poorly spent

Tom Barlow May 25th 2010 @ 2:00PM EST Filed Under: Tax

Ever wonder why so many television series are filmed in New York or Vancouver, Canada? Well, you'd shoot there too, if they offered you the cornucopia of cash savings that these areas do. Why? Because most states and some countries embrace the common wisdom that television productions bring big bucks to the local economy. This is also why the host locations for two major television series (Law and Order in New York City, Lost in Hawaii) are singing the blues as these two series come to an end.

Hard numbers about the economic loss are difficult to come by (more about that later), but, according to Bizjournals, Hawaii estimates that Lost pumped $400 million into the state's coffers during its six-season run. It reportedly employed more than 2,000 people in the last shooting year, and bought airliners-full of food, paint, wood, and other set supplies as well as renting fleets of vehicles and paying for lodging.

Continue reading Paying TV productions to shoot in your state may be money poorly spent

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