Since I was married to a teacher, I know about this tax deduction – do you or any of your teacher friends? If you are an educator, remember to keep any receipts for unreimbursed classroom supplies so that you have a record of them. There is a line item deduction on your tax form for $250 for these costs, and while you don’t have to submit your receipts to get the deduction it’s always a good idea to have them around just in case. I just read recently that some 66% of teachers use their own money for classroom supplies and/or food for their students, so while this $250 is nice it doesn’t seem like nearly enough. But it is what you have for now, so remember to take it!
Did you file an extension back in April so you could have more time to file your taxes? Well guess what – your due date is coming up next week. October 15th is the tax extension deadline, so be sure to file your taxes so you don’t get in any trouble with the IRS. While I have always filed and paid my taxes in April, when most people do, I have friends who file an extension every single year. There is nothing wrong with doing so, but you have to remember to file by October 15th so you don’t get in hot water with the government! My brother does my taxes for me, as he is a CPA, but you can either do them yourself or use a service like TurboTax – but either way, make sure you get them in by the 15th of October!
If you pay estimated taxes, please do not forget to pay your 3rd quarter installment which is due at the IRS tomorrow, September 15th. I have been paying estimated taxes for almost 4 years now as a self-employed taxpayer, and while it can be a pain in the butt to set aside that taxes due each quarter, I wouldn’t trade it for the world. And while many people send in the paper forms with a check every quarter, I pay my taxes due online with my Amtrak Rewards credit card. Sure, there is a little fee that goes along with it, but the miles I earn by paying thousands of dollars every 3 months far outweigh the cost. The IRS’ official way of paying estimated taxes online is through Official Payments, which is how I pay mine. So if you owe estimated taxes, be sure to pay them by the end of the day tomorrow!
You think your taxes are bad? I don’t necessarily think I pay too much in taxes (although I would like to see waste cut back on, for sure, so the taxes I do pay actually go further than they do), but when you look at the tax rates for the rest of the world, the people of the United States actually pay less taxes per person than most other countries. In the US, the tax rates for mostnormally falls between 15% and 35% of income, but if you look around the globe at some other countries, even the 35% doesn’t sound all that bad…
It’s just about that time of year again, when most states in America offer up a few days to shop without paying sales tax. While some states are not having the days this year (Massachusetts & California being two states without “no sales tax” days), many states will have sales tax holiday shopping days for their residents. To help you out, I have assembled the following list of the dates, number of shopping days, the items included, and the website you can go to for more information. Enjoy!
August 7-9, clothing – $100, computers – $750, school supplies – $50, books – $30, http://www.ador.state.al.us/salestax/SalesTaxHol.htm