For your consideration: Tax Rebate Check: Why Do You Do It?

We were sitting around thinking of easy ways to waste money.

Our big questions were for the following:

1. Eating out.
2. Alcohol.
3. Designer clothing for children.
4. Consumer electronics.
5. Food that you don’t actually intend on eating.
6. Porn.
7. Gambling.

It’s not like we actually have answers to these questions. We have more of, what you would say, antidotes: 1) Eating in is cheaper than eating out; 2) Alcohol from the liquor store is always cheaper than the bar; 3) Clothes from hand-me-down stores, et cetera, are fine for your kids; 4) Paying a little more attention to all those cans of corn you don’t eat as an indicator that you shouldn’t buy more canned corn is cheaper than not paying attention to what’s in your pantry; 5) Porn is free all over the internet; 6) Gambling is something you do with your life everyday, why push it in the casino?

These are easy and really, really common antidotes to common money-waster issues.

The Money Kings want to know why you do it. You’ve got a bunch of answers. Some of those answers are great; some are lame. Big deal.

What we want to know is: Why the hell will most of you spend your tax rebate check on consumer electronics?

For your consideration: The Money Kings' Top 10 Reasons To Love The IRS.

We’ve never done a Top 10 list, but with the most recent announcements about the problems of US economic policy, tax rebates, recession and the like, we thought everyone could use a list from The Money Kings targeted at every American’s favorite governmental office.

Top 10 Reasons To Love the US IRS

1. If only death and taxes are certain, and they’ll be the last two things for you to love in your life, then the IRS provides an easy choice.
2. Of all the people that send you garbage emails, at least the IRS states publicly that it will never try to collect your information via email.
3. The IRS is always ready and able to help you solve the stressful problem of getting rid of any money you don’t think you need.
4. The IRS has no reason to discriminate! All money is green to them.
5. The IRS has absolute power, and never lies about it by saying it’s YOUR FRIEND.
6. You never have to wonder why they’re calling or visiting your house. No ulterior motives . . .
7. You never have to sit around WONDERING about whether or not to get your buddies together with a bunch of sticks and signs to protest the IRS. You already know it’ll be a waste of time.

Here are your 2008 Federal Income Tax rates!

You can use this to determine your marginal tax rate and be reminded of just how much of your 2008 earnings will not go into your pocket. You can also calculate how much tax you’ll save if you increase your deductions! Once you see how much you can save then you may also be more inclined to start planning for your 2008 deductions now. You’ll want to ensure that you document every deduction that you can take throughout the year in order to maximize your return.

The published 2008 Federal Income Tax Rates are as follows:

Single Filing Status

• 10% on income between $0 and $8,025
• 15% on the income between $8,025 and $32,550; plus $802.50
• 25% on the income between $32,550 and $78,850; plus $4,481.25
• 28% on the income between $78,850 and $164,550; plus $16,056.25
• 33% on the income between $164,550 and $357,700; plus $40,052.25
• 35% on the income over $357,700; plus $103,791.75

Married Filing Jointly

• 10% on the income between $0 and $16,050
• 15% on the income between $16,050 and $65,100; plus $1,605.00
• 25% on the income between $65,100 and $131,450; plus $8,962.50
• 28% on the income between $131,450 and $200,300; plus $25,550.00
• 33% on the income between $200,300 and $357,700; plus $44,828.00
• 35% on the income over $357,700; plus $96,770.00

Married Filing Separately

• 10% on the income between $0 and $8,025
• 15% on the income between $8,025 and $32,550; plus $802.50
  

Very soon everyone will start preparing to do their 2007 income tax returns. However, today on Tax Tip Thursday I will share a tip on how you can start planning for your 2008 tax return. I know, I know. . . You are still working on getting all of the documentation together for your 2007 taxes. Your 2008 return probably seems like a lifetime away. However, read on and I will share one simple tip that I have been using for years to help keep me organized. And it will only take about 30 seconds of your time.

On January 1 of every year I pull out a new manila folder, and write the current year on it followed by the words “tax return”. In my case the folder I recently created is labeled “2008 tax return”. I then add this empty folder in with the rest of my files, and through the year I put everything and anything in it that may have some impact on my tax return. If I don’t yet know if something will have an impact, I stick it in the folder anyways and let my accountant decide if it is useful when tax time comes. The bottom line is that I have one spot where all documentation is kept that may impact my tax return for the current year. This includes things like receipts I get when I donate items to Goodwill, receipts related to my consulting practice, or even the receipt for that storm door I purchased so that when tax time comes I remember to claim the appropriate energy credit.

Hopefully this simple tip will help keep your important tax return documents together and organized in one spot. If you haven’t yet created your folder, it’s not too late!