The Federal Tax Credits Blog

Question: Advice for avoiding owing taxes in 2008?

We are sick of owing around $3000 in taxes! The so called tax reform did us absolutely no good – we owed more this year, and our bracket did not change. Taxable income, around 120,000 – standard deduction, no mortgage interest to claim. Each of us claim 0 deductions from work, even though we have 2 kids. We do have interest income from trying to be good savers, which at 25% tax rate would account for some of the taxes owed — but only about 1/2. If we could take the child tax credit, it would look good – but we are over the limit for that. Tax time is a real downer around here – any advice in planning for 2008?

Answer: I had the same problem a couple of years ago, I had my taxes done by professional tax preparers and I thought I would be getting back at least a thousand or more in refunds,I was so very disapointed and aggravated, I actually had to pay in a couple of thousand. I look at it this way, when you go to these type tax preparers, they say” hey ,looks like you have some extra income this year,looks like your gonna have to pay in.These people work for the government, they are just as dishonest as anybody else, they don’t allow you any extra loopholes, to save you money, let alone bothering to tell you about it and any extra monies that you thought or were anticipating getting back, will always end back up in their pockets.
For the last 2 years I do either Turbo tax online or Tax act online, they give you many more options as far as finding and using those loopholes and they walk you right through it, step by step, its so easy, really. Needless to say, I was able to get back a nice sizable refund, as compared to the latter years of having to always pay in.

The whole sad truth here though is that you just can’t ever get ahead, the IRS drains the very essence of your life out of your bank account. And they just don’t care, I know one thing though, now I see why many people choose a second job off the books for cash, or work totally for cash, because the IRS enjoy us supporting their high paying jobs for one and they actually push people to become dishonest for those reasons, mainly because most people are just trying to get by these days and struggling due to inflation of many things like gas prices. Instead or rewarding people for working harder and longer hours trying to do the right thing, the IRS takes it away from you and slaps you on the wrist.
Hope this was helpful, and thanks for letting me vent about the dreaded IRS.

Money insider: Brighter times ahead for housebuyers…

The last 12 months have proved difficult for people looking to move house or buy their first home. However, as we enter 2010 the outlook seems much far brighter. With house prices remaining firm since the summer, and the worst of the banking turmoil hopefully behind us, mortgage lenders have started to regain their appetite to lend.

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