Taxes

The Future: Where Will Tax Brackets Go In 30 Years?

I try very hard to avoid political discussions on The Simple Dollar because it often winds up in partisan bickering, but I feel that a discussion about the future of taxes and their impact on your personal finance decisions today is vital. First of all, why is it important to think about future tax rates? …

Categories: Retirement, Taxes

Should I Prepay On My Home Loan Or Put It Into Savings?

I had a lengthy and interesting discussion with my wife this morning about the interest rate on our home loan. We are locked in at 5.875%, and I told her that at that rate, we were better off not paying extra on the loan and instead putting it away in an HSBC Direct account at …

The Simple Dollar Talks Politics (Sort Of)

Although I usually avoid politics like the plague, I felt this was an important issue to address. Yesterday, one of my fellow personal finance bloggers wrote a piece entitled What Is The War In Iraq Costing You? In it, the author makes the following statement: According to this report of the National Priorities Project, the …

Categories: Taxes

Don’t Fear The Higher Tax Bracket

One of my readers, Annie, writes: I am up for a promotion at work, but a coworker says that I shouldn’t try to get the job because it will put me in a higher tax bracket. Is this something I should worry about? Would I actually make less money after getting a raise? Don’t sweat …

Categories: Careers, Taxes

Tax Refund: 10 Things To Do & 5 Things Not To Do

Tax season is finally over, and millions of Americans will receive checks in the mail in the coming weeks from the IRS. Although I do some consulting and other independent work (which means that I don’t typically receive a tax return at all), my parents often received a very nice return (having a low income …

Categories: Investing, Taxes

Debunking Henry Blodget

Hopefully that title got your attention. In fact, it’s a variation on the subtitle of an article posted to Slate.com yesterday, Spend Every Dime!, which says that you’ll actually lose money by saving and investing it, so why not spend now? Normally I would ignore such tripe, but this article has been making the rounds …

Tax Witholdings and Savings Questions

Recently, a reader of The Simple Dollar contacted me with an interesting question about tax withholdings: With the tax year over, we get to see what we owe the IRS and the State in taxes. Normally we have our employers withhold amounts and send them to those entities, where they sit doing nothing. Alternatively we …