Financial Freedumb and Brownie

If someone is deep in debt, trying to pay their way out of it, do you take their financial advice?  There are unusual circumstances that lead to debt, but in most cases bad judgement got them there.  So do you take advice from people like that?  I’m not so sure I would.

In life, I’ve met many who give others advice, and it’s the same in the blogging world.  I hope people are wise enough to decide for themselves what’s prudent and, ultimately, accountable for their own decisions –especially in these times when it’s so easy to blame other people.

I finished my taxes last week, and I was just reviewing all the information–I haven’t sent my amount owed to the IRS yet.  Hey, every penny counts!

I use Taxact.com every year.  Initially, when I first started using Taxact.com, it was because the price was dirt cheap.  Today, I use it because I’m just familiar with it, and I’ve never had any issues.  I think it’s still really cheap.

At the end of filing, they give you one report called TaxWatch 2009, in it is one thing I find really useful, and that’s the “Effective Tax Rate.”  ETR = Total Tax Paid / Adjust Gross Income x 100.  The lower the better!

• 2004 = 16.30%
• 2005 = 17.33%
• 2006 = 20.50% (highest AGI)
• 2007 = 11.43% (lowest AGI)
• 2008 = 17.30%

I need to figure out a way to reduce my ETR.

Did you know in some states, if you don’t pay your taxes your name gets plastered on a website?

http://www.spiesonline.net/delinquent-taxpayers.shtml

I think it’s a good tactic to some degree, although I’m sure a lot of people who are trying to work things out will get put on these sites.

Anyway, it’s almost time to send in that envelope with my payment since I’m not getting a refund. Just thought about filing for an extension to delay paying, but in the end, I don’t think it makes sense. You pay an estimated tax with an extension and then owe interest when you do finally pay, I believe…I could be wrong. I didn’t want to spend too much time looking into it. Oh well, taxes 2008 done. Hopefully.