You Can Pay No Income Tax and Still Get a Huge Tax Refund!

Believe it or not, about 50% of all Americans pay no federal income tax. Zero, nada, zilch, nothing, a huge goose egg! Today’s Super Saving Tips post might just be the biggest money saver ever and could be worth thousands of dollars to you and your family right now. There are two reasons for it: your income level and certain tax laws and benefits, like the Earned Income Credit and the Child Tax Credit.

It's possible to pay no income tax and still get a big tax refund if you qualify for the Earned Income Credit and the Child Tax Credit. Here are the details...see whether it can benefit you and your family.

The tax system in the United States is designed to be progressive, meaning that higher incomes are asked to pay a larger percentage in income taxes. If your income level is relatively low, standard deductions and exemptions can quickly lower your tax burden to zero according to the Tax Policy Center, a non-partisan research center. But then there’s something else. Because of credits, you can actually get a “refund” of real money without having paid any taxes at all! Continue reading

Your Tax Forms: Very Important Info and Dates for 2018

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Even though I can never quite figure out why people want to do it, many people are expecting and excited to get a federal tax refund every year. As I have written before, in almost all cases, the money you get back from Uncle Sam is your very own money that you have overpaid. It’s money you are literally lending to the government at no interest and they are very happy to just return it to you when you file your tax return. First though, this year there is an extra monkey wrench in the picture you need to know about!

It's important to understand when to expect your tax forms to file your 2017 taxes, as well as how to fill out your 2018 tax forms. Here's the details you need to know.

New Withholding Amounts for Your Paycheck

The Trump administration is pushing American businesses to withhold less in taxes from paychecks by February, aiming to quickly deliver the boost in take-home pay that Republicans promised their new tax law would bring. Sounds like a really good thing, right? Continue reading

17 Year End Tax Moves & 1 More Thing to Save Money

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It’s that time again to examine the moves you need to make to increase your net income and save on your tax bill. For 2017, it’s even more important to look at this now because of the proposed major changes which are currently being debated in congress for 2018.

If you want to maximize your income tax returns for 2017, the time to act is now with these year end tax moves, before any possible changes from a tax bill.

It’s more confusing to try to make any year-end adjustments to income and deductions this year because of the potential changes that the reform bill being debated in congress right now has created. Although it’s tempting to take action based on any expected changes to the law, use some caution. Until the tax laws actually change, it may be difficult to plan exactly what can benefit you the most right now. Continue reading

Record National Debt + Tax Cuts = an Alarming Scenario!

Andy Kim had a hit record back in 1968 with the song “Baby, How’d We Ever Get This Way?” That was a great question then and an even greater one today, especially when it comes to the national debt.

With a record high national debt and proposed tax cuts, I'm worried about our future and I'm not the only one! Can the federal government go bankrupt?

I feel a little like Sgt. Joe Friday of “Dragnet” as I give you “the facts and just the facts” on the status of “all things debt”. This week both the Senate and the House passed the Trump proposed budget for next year and it will not be cutting any of the national debt in the plan, that’s for sure. In fact, according to the Congressional Budget Office, the proposed tax cuts combined with the CBO’s already-projected mounting deficit could ultimately drive the deficit upwards another $10 trillion in the next 10 years. Increasing the debt another $10 trillion seems just crazy! Continue reading

Who Will Pay the Taxes When Robots Take Your Job?

It seems we are always talking about jobs and unemployment numbers, doesn’t it? After all, no matter who you are or where you live, earning a living is your major priority and concern. That applies even if you see yourself as a minimalist who is focused on being totally earth friendly and working just for yourself on the internet or even if you are a corporate mogul running a Fortune 500 corporation out in Silicon Valley. But as was heard long ago on the old 60’s “Lost in Space” TV show: “Danger, Will Robinson! Danger!”

In a world of increasing automation, tech and AI, is a robot tax in our future? How will government fund itself when our jobs are taken over by robots?

What will happen when robots take your job?

Robots are taking over the world’s workforce—and why shouldn’t they? For so many jobs, machines are faster, more consistent, smarter, and cheaper than you or I will ever be. As advances in artificial intelligence (AI) accelerate, robots will spread into all corners of the labor market: blue collar and white collar, service work and knowledge work alike. Continue reading

Trump’s Tax Reform: Can It Really Become Law?

Just so you know, it requires a great deal of restraint on my part to keep from writing about my political opinions here on the blog, especially about our new president and the chaotic events that seem to occur almost every day down in Washington, DC. My wife has reminded me that my readers here at Super Saving Tips aren’t looking for that sort of thing, and that you the readers are more likely to peruse the New York Times or Washington Post if you want political fodder. But wonder of wonders, I finally do have a little something to say that actually involves your personal finances and politics. So hopefully you’ll be interested this time around. It’s about…tax reform!

Trump has proposed some broad changes to our tax code, the biggest tax reform since the 1980's. But can it really become law? Here's why it isn't likely.

Trump’s Proposed Tax Reform

Our new president has presented the first trickles of information about his plans to reform the tax code and fulfill his campaign promise to review and change the federal tax laws. He and his Treasury Secretary, Steve Mnuchin, say it will be the biggest tax cut ever (fact check: actually it will be the biggest cut since the 1980’s and Ronald Reagan). Now normally when you talk about cutting taxes, that’s a pretty popular idea out there among the constituents. Continue reading

Deep in the Heart of TAXES

Benjamin Franklin once said “In this world, nothing can be said to be certain, except death and taxes”. Particularly here in the USA, you certainly can’t deny that, can you? You can’t really ever avoid the subject of taxes, especially right around now since the big and dreaded April 15th deadline (ok, this year it’s April 18th) is less than a month away! The truth however is this: income taxes are not the only taxes we have to deal with every day, and retirement and taxes is something we need to plan for. It’s not something that is new and it’s not something that is going away.

Taxes are an inevitable part of life, but when you mix retirement and taxes you know you need to do some planning. Here are some tax situations to consider.

The net is this: my paycheck is gross!

Back in the days when I used to get an actual paycheck, the first thing I would look at was the “net” amount of my check compared to the “gross”. There was always a big difference between those two numbers and most of it was centered on taxes. It always amazed me how many different ways they could slice up my paycheck and no matter what my salary was that number was always smashed by those payroll tax deductions. Continue reading

Income Tax Time – Do It Yourself or Tax Pro?

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It’s now income tax season and (hopefully) you are gathering all of your tax information and planning to file your return over the next couple months, certainly by the April 18th, 2017 deadline. Yes, you have a couple of extra days this year because the 15th is a Saturday and the 17th is a Washington, DC holiday this year.

It's time to get those income tax returns rolling. Are you going to hire a tax pro or DIY with online tools and software? Here's how to decide.

But once you’ve gathered your information, how are you planning to prepare your returns? Are you planning to do it yourself, or will you hire a tax professional to help? Continue reading

Strategies to Avoid the Dreaded Tax Audit

If you’re anything like me, you sometimes think about the possibility of a tax audit and wonder what you can do to make sure that never happens. Truthfully, tax audits are pretty rare, only about 1% actually ever get audited. They mostly occur with wealthy people (audited at 2.5%) and questionable returns with itemized deductions that may net the IRS some substantial amount of money.  There also audit some small number of totally random returns as well. Those that earn less than $200,000 (audited at about 0.7%) and file as individuals or joint earners stand the very least chance of an audit even though the numbers are increasing ever so slightly since 2008.

Strategies to Avoid the Dreaded Tax Audit Continue reading

33 Most Overlooked Tax Deductions You Need to Know

Billions of dollars are left behind every year by people who prepare their own taxes, often because they fail to take advantage of all the tax deductions available to them. While I believe that most of us can do our own taxes and not leave our money on the table, it’s imperative to prepare now for the tax return deadline which is April 18th this year (the 15th is a Friday and this year’s deadline has been extended to Monday the 18th). In Maine and Massachusetts it’s the 19th due to Patriots day.

33 Most Overlooked Tax Deductions You Need to Know

To help you with your 2015 tax returns, don’t skip this important list.  While I’m not a tax professional, you can always research these and other tax deductions at IRS.gov. Remember, if you have difficulty or your return is more complex than you can handle, see an accountant or check out the many free options either online or in your own community. Continue reading