Financial Musings of a Burbank CPA: The Simple Mind Trick That Will Boost Your Savings in No Time

If you are behind in saving for retirement or college for your kids, maybe thinking about things differently will change your savings discipline.  See this article in Money by Brad Tuttle for more details: http://time.com/money/3855517/tricks-boost-savings-retirement-college/?utm_campaign=Daily+Clips&utm_source=hs_email&utm_medium=email&utm_content=17663702&_hsenc=p2ANqtz-8OkdySB6_owZGX7-LOu2Zl6KlobgnZBYHOVq6vAh7T-GoKyiZpJXQTsF3k3p60UUwjUbG_srNNowPGklaxT1Qo_M6LaQ&_hsmi=17663702#money/3855517/tricks-boost-savings-retirement-college/?utm_campaign=Daily+Clips&utm_source=hs_email&utm_medium=email&utm_content=17663702&_hsenc=p2ANqtz-8OkdySB6_owZGX7-LOu2Zl6KlobgnZBYHOVq6vAh7T-GoKyiZpJXQTsF3k3p60UUwjUbG_srNNowPGklaxT1Qo_M6LaQ&_hsmi=17663702 In addition to how you think about savings, taking the thought out of the equation always helps, streamlining things and making it automatic.  As the article says, automatic payroll deductions to 401Ks to saving for retirement is a great idea.  You can also set up automatic transfers to your IRAs – if you never see the money you tend not to miss it (what a novel idea!)   For financial,  accounting and tax musings, You can count on us to count for you! Email: bstonercpa@sbcglobal.net  Phone: 818-317-6035   Website: www.briantstonercpa.com   Android and the IPhone:    Has been Featured On   https://twitter.com/bstonercpa        

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Musings of a Burbank CPA: Can states boost growth by cutting individual tax rates for the rich?

So, does reducing income taxes increase growth on a state by state basis?  In the past people wanting lower taxes have said yes, people wanting higher taxes have said no.  This article by Howard Glickman in the Christian Science Monitor says in actuality, it depends on the tax, the state and the economy in a lot of cases.  You can see the article here and decide for yourself: http://www.csmonitor.com/Business/Tax-VOX/2015/0505/Can-states-boost-growth-by-cutting-individual-tax-rates-for-the-rich?utm_campaign=Daily+Clips&utm_source=hs_email&utm_medium=email&utm_content=17540178&_hsenc=p2ANqtz–2Gcdjpb0i8dcVumNJ4_T3WT3ITLphBclafjZ0B7Bur0pBrISa4YUY3nkMYhktLFTa1iumXWZUB5yb2mJ_L_VQkMv1uQ&_hsmi=17540178 It is interesting that property taxes have more positive economic effects that income taxes.  Guess more testing is necessary to come to a consensus, since there are many still on both sides of the fence (like economists telling us where the economy is going, or weathermen telling us if it is going to rain next week.)  For financial,  accounting and tax musings, You can count on us to count for you! Email: bstonercpa@sbcglobal.net  Phone: 818-317-6035   Website: www.briantstonercpa.com   Android and the IPhone: Has been Featured On https://twitter.com/bstonercpa          

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CPA Tax Musings: How To Avoid a Penalty for Late Taxes If You are Self-Employed

This blog is specifically for the person who is self-employed and doesn’t know how you pay the federal government  the income taxes owed to avoid an underpayment penalty. So you are now an independent contractor and receive a 1099MISC for your freelance work.  This works to your “employer’s” advantage since he doesn’t have to withhold taxes for you, pay worker’s compensation insurance or unemployment insurance (which are the bad things for you, so now you are responsible for the taxes and have no unemployment or workers comp if you are injured doing work or your contract gets terminated).  You now have to pay income, social security and medicare taxes on the 1099 income, but can reduce that income by any expenses you had to pay that are work related (since they will not be reimbursed by anyone.)  To avoid the underpayment penalty, you have to pay taxes during the year equal to last years tax you owed or 90% of this year’s tax (during the year you would have to estimate as you go.) Figure out the lesser of the two tax amounts, 100% of last year or 90% of this year (remember to include social security (11.45% of your [...]

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