Of all the states, California is the state most closely associated with running a budget that ends up either always posting a deficit or having various discrepancies in its revenue. However, a special commission has been designed that will recommend a complete overhaul of California’s ancient tax system, a development that should bring plenty of financial relief to everyone involved.
 
Financial experts throughout California have long agreed that the state relies too heavily on taxing the wealthy and on the stock market while neglecting to focus on getting taxes from the service sector. The special commission, which was created by Gov. …read more

We pay fewer taxes than other countries, so why are we so bummed about it?

Shoppers in North Carolina and South Carolina will have the opportunity to enjoy a break from taxation this weekend, allowing people a much-needed chance to save money. Throughout the weekend, no tax will be collected from sales of clothing, shoes, school supplies, computers, and linens, amounting to as much as 9 percent savings.
 
For retailers, the weekend is a popular time to stock up and advertise specials that draw even more shoppers in for a chance to save money. Many stores have extended hours during tax-free weekend, while many customers plan to purchase more expensive items at that time in order …read more

I’m learning quickly that everything in this world costs something. Every when it doesn’t cost something for another person to produce, they charge you for it.
There was a mix up with one of my estimated tax payments from last year. It’s easy enough to clear up – I just need a copy of the canceled check. Like with most banks, my checks aren’t included with my bank statement. You can see them online, though. Good enough, right?
Wrong. Because they apparently don’t keep records online back that far. I went to the bank and talked to an incompetent teller, who said …read more

Tax Day, April 15, is only five days away. There are a number of interesting facts about Tax Day, provided by BillShrink.com. My favorite is also a money saving tip:
The average family could recoup 10% of their tax bill by choosing a better wireless plan and getting cheaper gas. Cool, huh?

I’m back for part 3 of talking about estimated taxes – you can (and should) read part 1 and part 2 first. Thanks, everyone, for sticking this out – I know the info can be a little dry by it’s definitely worth knowing! Let’s finish by talking about how to pay.
Image via sxc.hu.
What forms do I need?
You’ll enclose Form 1040-ES, which is an estimated tax voucher. You don’t need help filling this one out – all it is is your name, ssn, and amount you’re paying. Once you’ve done it your first year, they’ll automatically send them to you afterwards, …read more

Tax day is just nine days away. Eeeeeeeeek! If you’re like me, you’ve just begun to sort through your receipts and 1099s. I haven’t even gotten to working on the actual form. If you’re still working on your taxes, here are some last minute tips for small businesses, such as freelancers, from the people at the National Association for the Self-Employed:

– Check for hidden deductions: There are a number of deductions that small-business owners and the self-employed forget when filing taxes. If you work out of your home, your office may qualify for a …read more

Thanks for coming back for part 2 of our FAQ on paying estimated taxes if you’re a freelancer. You can read part 1 here, where we covered what estimated taxes are and whether or not you have to pay them. Let’s continue with some more information about estimated taxes.
Image via sxc.hu.
When do I pay estimated taxes?
You probably know that taxes for each year are due the following April 15. Estimated taxes are paid during the year, however. You’ll pay them quarterly by April 15, June 15, and September 15, of that year and January 15 of the following year …read more

Early this week, I posted some information about budgeting for your business taxes, and Jennifer Rowland left the following comment:
Could you do a follow-up article on quarterlies? A lot of new and accidental freelancers would appreciate some info about when you need to pay quarterlies, how you do it, when you need professional advice from a business banker or an accountant–that sort of thing.
I agree, Jennifer. When I first got into freelancing, I had no idea what I was doing. Lucky, the person I was dating at the time is a CPA! Since tax laws change ALL the time and …read more

As a freelancer, you don’t get paid in the same way as an employee. As you’ve likely noticed, clients don’t take taxes out of your check whenever they pay you, like happens when you’re on a payroll. That doesn’t mean that you don’t have to pay them, though. While many people get refunds this month when they get their taxes done, you’ll owe them if you earned money freelancing in 2007. New to freelancing for 2008? Let me sure with you a really great way to make sure you’re prepared to pay the tax man this time next year.
First, when …read more