Archive for the ‘Taxes’ Category

2009 Back to School Sales Tax Holiday Schedule

By: Green Panda | Date posted: July 30, 2009 (7:00 am)

The new semester is starting again and many college students and their parents are stocking up on supplies, dorm furniture, and computers for the new academic year. The good news is many states are having a sales tax holiday to celebrate going back to school.

If you’re considering to save some money, this may be a great deal for you. First check the list below to when your state has its sales tax holiday.

Check to see if your state has a sales tax holiday coming up.

Check to see if your state has a sales tax holiday coming up.

Participating states have already listed what items are eligible. Here are a list of the  states and some brief information from their respective sites.

Please check your state’s site for details and restrictions.

2009 Back to School Sales Tax Holiday Schedule by State

  • Alabama: ( August 7- 9, 2009) General use clothing – $100 or less; Computers, software, and school computer supplies -
    a single purchase with a sales price of $750 or less; School and Art supplies, Instructional material -  $50 or Less, per item; Books – Sales Price of $30 or Less, per book
  • Connecticut: (August 16 – 22, 2009) Clothing or footwear costing less than $300
  • Georgia: (July 30 – August 2, 2009 ) Clothing and footwear with a sales price of $100 or less per item; A single purchase of $1,500 or less of personal computers; general school supplies with a sales price of $20 or less per item
  • Iowa: ( August 7- 9, 2009) Clothing – $100
  • Louisiana : (August 7th and 8th, 2009) Consumer purchases up to $2,500
  • Mississippi: ( July 31 – August 1, 2009) Clothing & footwear – $100 each item
  • Missouri: ( August 7- 9, 2009) Clothing – $100 each item;   Computers – $3,500 ; School supplies – $50
  • New Mexico: ( August 7- 9, 2009) Clothing – $100; Computers – $1,000; School supplies – $15
  • North Carolina: ( August 7- 9, 2009) Clothing – $100; School supplies – $100 ; Instructional material – $300 ; Computers – $3,500 ; Sports equip – $50
  • Oklahoma: ( August 7- 9, 2009) Clothing – $100
  • South Carolina : ( August 7- 9, 2009) Clothing ; school supplies ; computers
  • Tennessee: ( August 7- 9, 2009) Clothing – $100 ; School supplies – $100 ; Computers – $1,500
  • Texas: ( August 21- 23, 2009) Clothing, backpacks, and school supplies- $100
  • Vermont: ( August 22, 2009) Personal purchase – $2,000
  • Virginia:( August 7- 9, 2009) Clothing – $100; School supplies – $20

I hope this list help you find a great deal. Let me know what you specials you find.

Psst….. I may be able to help you with getting a new computer! I’m really excited about this, but I don’t want to spoil the surprise yet.  Check back tomorrow and Saturday to see what I’m talking about. Better yet, subscribe to the site to find out quickly.

Photo Credit: Lordcolus

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    Two Ways To Wisely Spend Your Tax Refund

    By: Green Panda | Date posted: April 07, 2009 (10:21 pm)

    Start or add it to your emergency fund.

    You should do this first if you don’t have at least $1000 in your emergency fund. One great place to put it is in a high interest savings account, some of which are several times higher than many brick and mortar banks.

    There’s also HSBC Direct and EmigrantDirect.  If you have less to deposit, then don’t worry. You’ll still have your money grow faster than if you leave it a regular savings account.

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    How can you save additional money for an emergency fund?

  • Look at your package deal for cable, phone, and Internet. Call your cable provider, such as Time Warner Cable and Comcast, to see if they can give you a better rate. It works sometimes, but if they don’t, then consider cutting back on the cable package for a month or two, just to get your emergency fund started. You may not notice a big difference and keep the change. Either way you can save $30-50/month for this and that’ll help with your fund.
  • Examine your cell phone plan. Can you change your plan? With Alltel you can change it without getting an extension on your contract. I’m sure about the other plans.
  • Look at your land line plan. It didn’t make sense for my husband and I to have a land line AND our cell phone plans. So far, so good. If you must have a land line and a cell phone, you may want to take off long distance with your land line.
  • Compare insurance companies for auto insurance rates. I saved $50 a month on car insurance for the same amount of coverage. Shopping does pay off. Just make sure you’re given a policy that can comfortably cover you and your situation.
  • Go during happy hours when you decide to eat out. I know that many college students hang out as a part of the cultural, so it would be impractical to tell you stop going out, but at least save money while you’re there. There a great place down the street that offer 50% drinks and has 50 cent tacos. So we plan our eat outs around that time (4pm-7pm). It’s still just as fun, but a lot cheaper.

    • Suze Orman caused a bit of a stir by advising people to pay minimums on their credit cards until they have eight months saved. The point taken for me is that socking away some money in these uncertain times can be a wise move.

    Pay down your credit card debt.

    Congrats if you have some money leftover from #1 to put towards paying down your debt. This is a step that can make you feel better as your debt shrinks. Depending on the size of your bonus you can completely eliminate your credit debt out take a chuck out of it.

    You can tackle it one of two ways:

    • 1. Go after the small debts and feel great about knocking them out completely. This debt snowball method could give you a psychological incentive to continue. Dave Ramsey notes that many problems can be overcome by psychology.
    • 2. Put it towards the highest interest debt and gain a financial advantage. If you’re looking at a strictly numbers standpoint, this is the logical choice.

    Choose a method that will work best for you.

    How do you do get rid of debt?

    1. Stop using credit cards. Hide them or perform a plasticomy.
    2. Discover the exact amount of debt you’re in. You can’t come up with a plan until you know what you owe.
    3. Work to see if you can lower your interest rates. If you can’t, you may consider choosing a 0% card to transfer your balance. Balance transfers are a temporary fix and do not address the root problem.
    4. Control your spending and write a simple budget.
    5. Automate your bills and put aside some money for savings.

    Do you have any tips or plans for your tax refund?

    Photo Credit: Crystl

    Related Blogs

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    My Take: H&R Block Tax Cut

    By: Green Panda | Date posted: January 30, 2009 (8:01 am)


    In the interests of full-disclosure, I purchased H&R Block Tax Cut before signing up for affiliate ads. 

    We’re filing our taxes ourselves this year and decided to get tax software. We don’t believe our filing will be complicated, but between the move and some other changes, we wanted a program to enter our financial information. After some thought, I picked  H&R Block Tax Cut, specifically the Premium Federal Edition. 

    TaxCut appealed to us for two reasons:  Ask a Tax Advisor (1 session) and Worry Free Audit Support. We don’t anticipate an audit, but I might have a question or two concerning our taxes. 

    I picked up the program from Wal-Mart Tuesday as I was picking up a gift for some friends. It was by the electronics section and there were three options to choose from: TaxCut Basic Federal + E-file, TaxCut Premium Federal + E-file, TaxCut Premium Federal + State + E-file. I didn’t see the TaxCut Home & Business + E-file Edition, maybe they were sold out at the store.  

    When I reviewed the package  a bit more at home, I noticed that I also got WILLPower CD for estate planning. Installation didn’t take too long. I installed both TaxCut and the Deduction Pro program that came free with the software. When I first ran the program, it checked for update, which was about a minute or two. Maybe this will motivate me to actually get some important paperwork done.

    Our Premium Federal Edition of  H&R Block Tax Cut includes up to 5  free federal e-files and 1 state e-file. Since we moved, we’ll need to pay for the second state.  I decided to start entering our information into the program. We’re still waiting on some W-2s to complete our filing and as they come in, I’ll enter them. The process is relatively painless and it’s like an interview with questions to answer. It’s easy to save and enter new data in our return.

    It transferred our federal return information to our state return, a nice time saver. So far, I’m finding the program to be easy to use and I don’t feel intimidated with getting our taxes done.  I like the summary pages which allow to go back fairly quickly to section you want o double check or update. My only big gripe is that a second state e-file is $19.95. 

    Update: We sent our federal and one state tax return through the e-file. It was quick and painless. The other state needs a paper tax return, so I’ll get busy with sending that tomorrow. 


    Operating Systems for H&R Block Tax Cut: 

    • Windows XP / 2000 / Vista
    • Mac OS X

    Tax Resources

    Helpful Tax Information for College Students

    By: Green Panda | Date posted: December 22, 2008 (4:14 am)

    After looking at the IRS’ site, I included some common questions on taxes that people have.  I added my own commentary to some points that I found interesting. It’s always interesting to find out how the US tax system works.

    2009 Standard Deductions Rise and Changes in Earned Income Credit

    The new standard deduction is $11,400 for married couples filing a joint return (up $500), $5,700 for singles and married individuals filing separately (up $250) and $8,350 for heads of household (up $350).

    Tax-bracket thresholds increase for each filing status. For a married couple filing a joint return, for example, the taxable-income threshold separating the 15-percent bracket from the 25-percent bracket is $67,900, up from $65,100 in 2008.

    The maximum amount of income you can earn and still get the credit has increased for 2008. You may be able to take the credit if:

    • You have more than one qualifying child and you earn less than $38,646 ($41,646 if married filing jointly),
    • You have one qualifying child and you earn less than $33,995 ($36,995 if married filing jointly), or
    • You do not have a qualifying child and you earn less than $12,880 ($15,880 if married filing jointly).

    Investment income amount increased. The maximum amount of investment income you can have and still get the credit has increased to $2,950 for 2008.

    Source: USA IRS

    Use the Hope Credit or Lifetime Learning Credit to Save on Taxes

    If you’re in college, take a look at the Hope Credit and the Lifetime Learning Credit. If you are in your first two years of college, you may qualify for the Hope Credit. Otherwise, look at the Lifetime Learning Credit for all other years (unlimited number of years). Keep your receipts for tuition and educational expenses. You cannot claim both credits in one year.

    I couldn’t find the new adjustments for your gross income. In 2007, if your modified adjusted gross income was between $47,000 and $57,000 ($94,000 and $114,000 if you file a joint return), you should be able to qualify. We won’t be able to take this credit since I’m not a student anymore but I hope you guys can put this to good use.

    Some Easy Ways to Lower Your Taxes

    By looking at the IRS and other sites, I found some tips that can help reduce your tax burden.

    • Contribute the most you can to your retirement. You can contribute to your 401(k) and it isn’t taxed as income when you put deposit. Even with the bad market, you can still get some benefits.
    • Donate to worthy charities that fit with your goals. If you donate money, keep all receipts. If you donate items you can deduct their fair market value. If you drove for a charity there’s a small deduction you take.
    • If you moved for a job, see if you qualify for a deduction. It has to be more than 50 miles away and you stay at the job at least 39 weeks.
    • Deduct Student Loan Interest. Keep the paperwork to get a tax deduction.

    Check out some other deductions you may be overlooking.

    How much does a student have to make before he or she has to file an income tax return?

    If you are an unmarried dependent, you must file a tax return if your earned and/or unearned income exceeds certain limits.

    I included the IRS chart to see if you are required to file a tax return by looking at your income earned.

    Table 1.2008 Filing Requirements Chart for Most Taxpayers

    IF your filing status is… AND at the end of 2008 you were…* THEN file a return if your gross income was at least…**
    single under 65 $8,950
    65 or older $10,300
    head of household under 65 $11,500
    65 or older $12,850
    married, filing jointly*** under 65 (both spouses) $17,900
    65 or older (one spouse) $18,950
    65 or older (both spouses) $20,000
    married, filing separately any age $3,500

    Source: IRS Publication 501

    If you’re looking for a specific question, want to get some tax help, and want a reliable source, try the IRS’s website. There is a huge amount of information to search through. I also included some information from other personal finance sites that were helpful.

    How do you plan for your taxes? What tips do you have to keep your money?
    Photo Credit: NickStarr

    Our Game Plan for the Economic Stimulus Check

    By: Green Panda | Date posted: May 12, 2008 (6:41 pm)

     

    It’s not exciting or ‘fun’, but our economic stimulus check will go towards knocking down the car loan. This is the best plan for us as it will eventually lead us to having an extra $235 each month to spend as we please (after the loan is paid for).

    I’m so tired of seeing the stupid plans retailers have come up with on the stimulus checks. Some seem ok, while others seem just plain stupid:

    • Sears: They are adding another $10% to your stimulus amount if you convert it to a gift card.
    • Car Dealers: I’ve seen on TV where they are matching part or all of your refund when you buy a new car.
    • Ace Hardware: Their stores will have 20 % off sales on selected merchandise.
    • Kroger: They will convert a tax rebate check for a Kroger gift card, with a 10% bonus.

    My opinion: Don’t give Sears your money! Taking your stimulus money and converting it to a gift card here limits your options severely. (Note: I have personal bias against Sears as I’ve seen them charge family members practically 30% a year in interest.) Something like an extra 10% for groceries would actually be useful for many people as we have to eat.

    • If you have high interest debt, use the stimulus to pay down or eliminate it.
    • If you have no savings, put it in a high interest savings account to start your emergency fund.
    • If you have no debt and have savings, looking into depositing the money into an IRA.
    • If all of the above is in place, have fun with the money. Actually you could send it to me. :P

    Please, just have a rational plan for your economic stimulus check. Don’t waste this opportunity.

    Photo Credit: dbking

    Our Federal Refund was Delayed

    By: Green Panda | Date posted: February 28, 2008 (7:02 pm)

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    We filed our taxes a couple of weeks ago and got our state refund back.  That money will be added to the car payment in March as per our plan (commentors helped convince me along with my husband), so I can get the extra money applied towards principal.

    The bad news is we’re not getting the refund we expected. Whatever, onward we press!

    If you’re federal refund is delayed and you want to check the status of it, go to the IRS official site. If you prefer to speak to someone on the phone, the number is 1(800)829-1040.

    While still under the weather, I continue to look around the blogsphere and I found some good posts about taxes:

    I hope this information helps you out.

    Did you owe taxes this year or did you get a refund? How have you spent it if you got a refund?

    Photo Credit: Phillip

    Tax Forms With Personality?

    By: Blue Panda | Date posted: January 23, 2008 (1:27 pm)

    This is a guest post by Green Panda’s husband.

    It’s early in tax season and if you’re expecting a refund, then you’re probably looking forward to it. On the other hand, if you aren’t expecting a refund, then you still know you’ll have to fill out some very boring IRS forms and perhaps state forms.

    One day, I happened to be looking at the individual tax form for Maine and I noticed that the form gives you a smiley face if you get a refund. Maine doesn’t do anything special if you owe money, of course. But, hey, that’s neat, there’s a bit of personality here.

    Maine's glad it got an interest-free loan from you

    After seeing this, I wondered if any other states put a little personality into their tax forms and went digging through tax forms for other states (some this year, some last year) to find out.

    Well, Utah apparently didn’t want to be outdone, and decided to sympathize with you if you owe money.

    Utah doesn’t like interest-free loans of its money

    As did Rhode Island.

    Rhode Island doesn’t like interest-free loans of its own money

    But then Rhode Island apparently figured they could take it a step further, and added clip art to their tax form.

    Clipart on a tax form?

    Illinois decided to add something like clip art. I guess they figured, “hey, as long they’re paying taxes, maybe they want to give more, too!” Well, at least they’re donations. But why is “giving” in quotes? Is there something I don’t know about?

    Illinois makes (air-quote) giving (end air-quote) easy!

    North Carolina likes to make you fill in circles.

    North Carolina’s circles

    Interestingly, that example circle appears after the earlier circles. I hope you didn’t mess up in filling in the circles earlier, before they gave you that help!

    Now, North Carolina isn’t much for clip art. Well, maybe a dollar sign sort of counts. Yes, I’m sure they want their money in dollars.

    We want you to pay in dollars. DOLLARS. Got it?

    However, they don’t bother specifying that detail when you get a refund, though. Sneaky. (Either that, or they pay you in arrows? Tax forms can be so confusing at times…)

    But we’ll pay YOU in arrows.

    And, finally, Georgia has decided to help you out a bit if you failed basic math and are trying to figure out what percentage of your total income is taxable Georgia income. You’re on your own for all the other math on the form, though.

    Ratios don’t go over 100%.

    Anything I missed from the tax forms where you live?

    Our Rough Draft Plans for a Tax Refund

    By: Green Panda | Date posted: January 18, 2008 (1:39 pm)

     

     

     

    I just got my W-2 this week and I’m excited as I’m expecting a refund this year. My husband hasn’t gotten his yet, so we’re just playing the waiting game. I hope I entered the data right; it would be horrible to have to pay taxes and then find out we owe some.

     Last year we receive a refund bigger than this, but I’m budgeting for the smallest refund as a buffer and a way to keep my hopes in check.

    Right now our joint savings account is a combined emergency fund/house fund account. We dump an extra from our joint checking that we didn’t spend that month (we do keep a buffer in checking) and my husband has a regular monthly deposit in it.

    The tax refund will go into the joint account and we’ll not touch it. We figure that would be best and it’ll be ‘forgotten’ until we need, hopefully as a down payment on a house. When I say house I mean a condo or a townhouse.

    There’s only two of us (three if you count my cat) so we feel that a house isn’t necessary. If we somehow got a miraculous deal on a detached, then we’d consider it. Also by looking at condos, we can perhaps living closer to the city, which would allow us to possibly use public transit. I was born in New York City (visit many times for family, but left when I was young) and I have no qualms using it as long as it is consistent. (Currently in this city, the buses have been known to be off by 20 minutes. You could be at the bus stop at the right time and just missed the bus, then you’d have to wait an hour before the next one comes.)

    Some savvy reader will remember that my goal is to pay off my car loan as possible and may wonder why I wouldn’t use the tax refund to speed that up. Here are my reasons for planning it this way:

    • It’s my car loan. I got this before I married my husband. I feel that I should take responsibility for this. He bought his car outright, so I don’t think it’s fair that he pays for mine.
    • I use my car 95% of the time. If my husband drives, he likes to use his car, a two door with slightly better mileage.
    • I can afford to pay my car loan. If I was unable to make the minimum payments, then it would have to be discussed, but I’m doing alright right now.

    Well, that’s our plan. What are your plans if you are expecting a refund this year? Any suggestions?

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