Tax Carnival Ecstasy – July 30, 2013

Cover of Book, The Art of Investing in America.
Cover of Book, The Art of Investing in America. (Photo credit: Wikipedia)

Welcome to the July 30, 2013 edition of Tax Carnival Ecstasy. We start this edition with some short term financial goals by Viveka on the blog ‘My Journey to Millions’. John Schmoll takes a look at investing in the stock market and the level of difficulty that you face when you invest for retirement. And finally Bill Smith looks at annuities as investments and the tax implications of investing in them. Hope you like all the articles, bookmark our carnival, like on Facebook, tweet the link and come back real soon.

David presents Quick Way to Save Money on Booking a Hotel Reservation posted at Financial Nerd, saying, “Interesting Way I saved money by booking a hotel reservation”

viveka presents Top 15 Most Popular Coupon Websites posted at Top 15 Most Popular Music Websites, saying, “Here are the 15 Most Popular Coupon Websites ranked by a combination of constantly updated traffic statistics.”

deductions

viveka presents Short Term Financial Goals posted at My Journey to Millions, saying, “Short Term Financial Goals – My Journey to Millions”

filing

viveka presents The Detroit Bankruptcy Should Teach You that Nothing is Guaranteed with your Finances posted at My Journey to Millions, saying, “Detroit\’s recent bankruptcy should teach you something about risk and your personal finances and retirement. Real possibility of reduction in pension and trimming of bonds”

viveka presents Dividend Investment Portfolio Archives posted at My Journey to Millions, saying, “Dividend Investment Portfolio Archives – My Journey to Millions”

retirement

John Schmoll presents Is Investing in the Stock Market Really That Easy? posted at Frugal Rules, saying, “Many are overwhelmed when it comes to investing in the stock market. With a little homework and due diligence it can actually be simplified quite a bit and can lead to more efficient investing for long term needs like retirement.”

viveka presents Will I ever Lose my 401k? posted at My Journey to Millions.

tips

Bill Smith presents Are Annuities a Good Investment posted at 2011 Tax, saying, “There are two different types of annuities: deferred annuities and immediate annuities. The type of annuity you choose depends on how soon you expect to receive payments.”

That concludes this edition. Submit your blog article to the next edition of tax carnival ecstasy using our carnival submission form. Past posts and future hosts can be found on our blog carnival index page.

Learn About The Buffett Rule

Learn About The Buffett Rule

Watch out for debate misdirection when it comes to taxes. Dr. Cornwall wants everyone to know that there will never be a tax increase on the extremely wealthy population (The Buffett Rule) that will put the tiniest dent in the tax shortfall of the United States.

So why is everyone so focused on the debate about making those who bring home over $250,000 a year pay more in taxes?

The answer is the Buffet Rule by President Obama. This Buffett Rule raises the taxes on a group of extremely wealthy people, but we hear that many of them would be glad to pay more in taxes.

We are also hearing that this group is about two percent of the population of taxpayers. In all honesty, they are about 1.8% of the population that pays taxes. They are over two and a half million people according to data provided by the IRS.

The deficit right now is $1.1 trillion. That is $440,000 for each wealthy household a year. There will not be any type of increase in taxes that can resolve this tax situation.

If you are wondering whom the two and half million super wealthy people are, according to surveys from the Spectrem Group up to twenty five percent of them are entrepreneurs. These professionals are the people we need to be expanding their businesses so that our economy can get better.

So why are political figures trying to soak the rich?

President Barack Obama and Warren Buffett in t...
President Barack Obama and Warren Buffett in the Oval Office, July 14, 2010. (Photo credit: Wikipedia)

I am a believer that this is just a set up for what we can expect in our future. This is just a way to get started on the real tax increase so that the masses will be more open to it.

There have been many talks about using a value added tax system for our tax burdens right now so that we can fund our federal government. It is surprising how little attention the press is paying to the VAT tax. What we are mostly hearing about is in regards to taxing the very wealthy.

The VAT tax has not been a favorite choice for Democrats because of it being such a flat tax. This European method is going to need to be covered if they decide to add it America’s tax system.

In the next few months, this is what I see happening…

There will be an agreement that the top marginal rates will have to be increased to at least where they were before the Bush tax cuts. This will be the Democratic cover.

After that, the VAT tax will be implemented. Republicans will be able to say that even if they did not want to raise our taxes, we should be happy that they did so by implementing a flatter tax system instead of huge increases in income tax rates.

When this happens, America will be facing an expanding government that has a new tax program for politicians to use however they see fit.

Tips On Preventing Tax Refund Identity Theft

Tax Refund Identity Theft

Tax filing tips can help someone prevent tax refund identity theft, but there are tax filing tips that can keep someone from becoming a citric of this crime when he is filing his taxes 2011 or his taxes for any other year.  There is vital information a person must place on every return. The return needs his name and his social security number. He needs to be honest about his income, but if more than one social security return is filed for the same  number may or may not send up a red flag. The IRS cannot check everyone.  The checks or the debit cards need to be sent to their intended recipient.

Many people rely on their tax return to make large purchase. Some people use their taxes to buy new cars or to make other large purchases. If the IRS gets two different terms from the same social security number, it flags the return. IRS agents need to go over the return manually. The need to process a return manually can delay the return for weeks or months. The IRS needs to figure out which return is legitimate and which return needs to be processed.

A taxpayer who has followed the rules all of his life may wonder why  his tax return has undergone such scrutiny. It has to do with the way the organization processes returns. The return that gets handed in first is processed first. A later return coming in later causes an investigation to be launched. There may be times when the mistake comes about because of a transcription error. There are other times when it comes about because someone has stolen the original taxpayers social security number.

Tax Carnival Ecstasy – January 12, 2012

Welcome to the January 12, 2012 edition of Tax Carnival Ecstasy. In this edition we have Tim @ Faith and Finance looking at When Are 2011 Taxes Due? aka. Tax Deadline in 2012 which happens to be April 17th instead of April 15th. There is also an article on Ways To Take Advantage of 2012 Tax Rules by Robert Moore. And Jill Thompson examines Potential Hazards of Rent-to-Own when you are the seller. Hope you enjoy the articles, bookmark, share, tweet, like on Facebook and come back real soon.

retirement

Patrick LaRue presents 4 Ways to Get the Most out of Your Retirement Budget posted at 2010 Tax, saying, “As medical technology advances, society becomes safer and health knowledge becomes more mainstream, the life expectancy of humans tends to increase.”

Rachel Cleary presents Where to Retire for Less than $1,500 Per Month posted at Senior Care, saying, “As of the first quarter of 2011, the average retiree benefit from Social Security was under $1,200 per month. For retirees with a modest nest egg saved for retirement, drawing on the 4% withdrawal rule to supplement Social Security still does not bring their annual income over $18,000 per year. Unfortunately, finding a place to retire on less than $1,500 a month is not easy, unless a retiree is willing to move. There are numerous cities throughout the United States, and definitely places abroad, where a small budget can still provide a comfortable lifestyle.”

 

tax law

Amy Gardner presents How to Improve Your Business Credit posted at Small Business Credit Cards, saying, “There are many different factors other than simply paying your bills on time that will cause your credit to fluctuate.”

 

taxes

Tim @ Faith and Finance presents When Are 2011 Taxes Due? Tax Deadline in 2012 posted atFaith and Finance, saying, “Here’s an update on when the 2011 taxes are due. Hint…they’re not due on April 15th.”

Gavin R. Putland presents How tax causes financial crises and unaffordable housing posted at The world according to GRP, saying, “Here’s a simple theory of financial instability.”

Robert Moore presents Ways To Take Advantage of 2012 Tax Rules posted at 2011 Taxes – Free Tax Filing Options, saying, “Its almost tax time again this year, a frightening period for many people. How can you make the most out of your tax return this year?”

Beth Montgomery presents History of Credit Cards posted at Credit Cards for Fair Credit, saying, “When credit cards started, in the early 1900s, the cards were issued by individual stores or gas stations.The cards were designed and issued to create brand loyalty and encourage customers to return based on the convenience of having established credit at the merchant.”

Rachel presents Tax Return Tips | taxreport.info posted at taxreport.info.

 

tips

Judy Blackburn presents Build Your Credit and Be a Full-Time Student posted at Debt Consolidation, saying, “Everyone wants to be successful, and for many people, graduating with a college degree is a big step towards that goal.”

Steve Smith presents Forex Trading For Beginners posted at Forex Trading System Central, saying, “Forex trading seems a complicated affair and most of us put our money in the bank and hope that our money magically grows.”

Jill Thompson presents Potential Hazards of Rent-to-Own (Seller) posted at How Does Rent To Own Work?, saying, “There are potentially serious consequences for engaging in one of these arrangements without fulling understanding the law governing them.”

CreditShout Kevin presents Understanding Statute of Limitations on Debts posted at Credit Repair Guide.

Melissa Rothstein presents Why Are Legal Fees So High posted at Best Online Colleges.com, saying, “In the United States, it is considered illegal to practice law without having the proper license. The laws governing what constitutes the practice of law, and thus what requires a license, varies by state. While the laws may vary, it is generally understood that practicing law involves one individual representing another in a legal matter, with some form of compensation exchanged.”

That concludes this edition. Submit your blog article to the next edition of tax carnival ecstasy using our carnival submission form. Past posts and future hosts can be found on our blog carnival index page.

 

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Top 5 Online Tax Scams

Yes, you don’t want to think of your taxes for 2011 until Tax Day comes along, but you should be wary.  Online scammers are planning already how to steal your identity and tax refund. The 2011 tax season’s scams include new tax credits going for donations to Japan for disaster relief, Websites that are search engine optimized and are filled with malware, dangerous e-mail, and Facebook “likejacking” techniques.

Around 19 million filed their taxes at their house for 2011 taxes.  This is a six percent increase from 2010, according to a report by the IRS.  During this time of year, tax-related online scams abound.  Tax scammers are aware that taxpayers are putting in their personal information online, as well as storing confidential financial documents on the hard drive of the computer.  They are also accessing sites to look for information on tax laws and deductions.

A representative for the security firm Sophos, Jennifer Torode, states that most people procrastinate and file their tax forms at the last minute.  Scammers take advantage of the frantic behavior of these latecomers, and lure their into their deceitful webs.

There are five top scams for this season-make sure to avoid them. First, the Japan Quake scam mimics an actual law from last year to set up a means for taxpayers to donate to the Haiti Fund. Gone Phishing (a bogus IRS website that looks as though it’s a tax preparation service, but is really meant to trick someone into downloading malware) is another one that trips people up. Black Hat SEO (Search Engine Optimization), is a way by which the criminal uses sites such as Google Trends to determine popular search keywords for people researching taxes, to optimize their chances of luring someone in. Likejacking on Facebook, or hiding a button over a like button directs to a link advertising a tax service, but it is actually a scam. Last, but not least, phony e-mail is used in the form of a fake message from the IRS to download a form and then give your social security number.

All of these scams have been successful on occasion, but as long as the public is made aware of them, there is less likely to be a chance that as many people will be tricked into giving personal information or allowing someone to get their documents from their hard drive.