18 Dec, 2010
Credit Score Score
Your credit scores are generated from a complicated scoring algorithm that takes all of the information in your credit reports and summarizes it into an easy-to-read three digit number. This three digit number helps lenders assess your credit risk and predict how likely you are to pay back a credit obligation– on time. In simpler terms, your credit score is your credit report’s grade, and you want this grade to be as high as possible.
However, before you can achieve a high score, it helps to know what factors are used to determine this three digit number. We sent Farnoosh Torabi, Credit.com Money Expert, out on the streets of New York to ask consumers if they know how their credit scores are calculated. Wat
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18 Dec, 2010
Tax Deductions
A deduction reduces the amount of income you’re taxed on. The greater your deductions, the lower your taxable income.
There are two deduction categories, standard and itemized. With very few exceptions, you’re allowed to take one or the other when filing your taxes for the previous year.
The standard deduction is a flat amount that you’re allowed to deduct based on your filing status. For 2010, the standard deduction for a single is $5,700 and $11,400 for a married couple filing jointly.
Itemized deductions are a variable amount that you’re allowed to deduct from your income. This am
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18 Dec, 2010
Security Social Security
You can start taking Social Security benefits at age 62 but it’s reduced compared to what you’d at 66, which is full retirement age. You would start claiming the benefits at 62, put them in an interest bearing account, and then withdraw your application when you turned 66. At that point, you’d pay back whatever benefits you received and keep the interest. Then immediately apply again and get full benefits.
The door has pretty much been closed on the free loan loophole (OK, technically it’s been shut to a sliver) when the SSA created a 12-month deadline to withdraw your application. In other words, you can get a loan but it’s only for a year. A percent
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18 Dec, 2010
Collected Sales Tax
In our next edition of our nascent What If? series, we take a look at a target of the fiscal hounds. Since the dawn of time, sales tax was only collected on internet sales if the vendor had a physical presence in the state of the buyer. As many state governments ponder how they will get their budget back into the black, after plummeting home values and real estate tax revenues, collecting sales tax on online purchases seems to be a popular idea.
What would happen if sales tax were collected on online sales?
For Vendors
They hate it for logistical reasons because having to collect fifty different sales taxes (technically fewer than that because some states don’t collect sales tax) and filing them with the state would crush many small businesses. T
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18 Dec, 2010
Day Sick Day Take Sick Take Sick Day
According to statistics in the article, “57 percent of U.S. salaried employees take sick days when they’re not really sick—a nearly 20 percent increase from statistics gathered between 2006 and 2008.” I haven’t taken a illegitimate sick day in the last three years (I work for myself so it’s hardly a feat) but in all my time at previous employers, I think I’ve only ever taken four or five sick days total. I can only remember one of them being illegitimate because I wanted to add another day to a weekend.
Now that I’m older, I don’t think it’s OK to lie and tell your employer that you’re sick when you’re not actually sick. With many employers you
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18 Dec, 2010
Tax Tax Cuts
I held back on putting up a post about the fate of our tax brackets because of all the political tap dancing lately, with both sides complaining about the compromise, but it appears that we’ve reached a final resolution.
The timeline:
- Monday 12/13: The Senate voted to end debate (cloture) 83-15
- Wednesday 12/15: The Senate vote 81-19 in favor of passing Senate Amendment 4753 (which amends H.R. 4853 Middle Class Tax Relief Act of 2010)
- Thursday 12/16: Despite all the complaints by House Democrats, the House of Representatives approved the $858 billion tax deal on a final vote of 277-148.
- Friday 12/17: It’s expected that President Obama will sign this bill today.
If you’re one to keep track of who scored which political points, then I think each side came out with what they wanted. Presi
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