If you want to see your name on a cake like this someday, don't cash out your 401k.

If you have a 401k, you may think that cashing it out to pay off your debt is a logical idea. It’s your money, right? And why let it sit there and collect dust while you are struggling?

I’ll tell you why: So you can retire someday. And debt consolidation will not be an option when you have no income.

Paying the price

People often think they will save money by cashing out their 401k. They figure if they pay off their debt right away, they’ll save on interest. However, cashing out a 401k is a very costly venture.

401k funds are heavily taxed. Plus, there are hefty financial penalties in the form of fines if you cash it out early. Furthermore, you are earning interest and possibly matching payments from your employer on that fund. Any extra money you would have earned while trying to build it back up will be lost.

Can’t fight the future

Think of it this way: Say you cash out your 401k right now and pay off your debt. You’re even-steven, but you have to start all over to build up your 401k again. Chances are, when the time comes around that you planned to retire, you’ll find that you do not have enough money in the fund. You’ll either have to keep working or live in poverty.

How a debt counselor will help

When you sit down with a debt counselor, you will come up with a financial plan. Not only could you save money on interest, you will know how soon your debt will be paid off. If you leave your 401k intact, you can leave your future retirement plans undisturbed and pay off your debt at the same time.

Well, Tax Day has passed, and most Americans are breathing a sigh of relief to have it over with. However, an estimated 10 million taxpayers still have unfinished business. If you filed a 4868, you probably already know that filing a tax extension does not give you more time to pay if you owe taxes.

That’s right, if you filed a tax extension but didn’t pay the full amount you owe, the clock is ticking. The  IRS is charging you interest. The interest the IRS charges on unpaid taxes is lower than the rate on most personal loans or cash advances, so don’t panic.

Tick tock, tick tock

If you filed a tax extension, you have until Oct. 15 to send your tax paperwork to the IRS. Most taxpayers also know that if you file a tax extension and you expect to owe money, you should estimate the amount you owe and send in that much. If your guess is high, you will have the difference refunded to you whenever you do file your taxes.

However, if your guess was low or if you didn’t have enough money to pay you could end up having to pay a penalty. If you didn’t pay anything at all, you could face real trouble — although you probably already know that.

No, not that kind of trouble

If you filed a tax extension but didn’t or couldn’t pay, you will not get sent to jail.

“You can go to jail for not filing a tax return,” said Greg Plechner, certified financial planner with Modera Wealth Management. “You can’t go to jail for not having the money to pay on your tax return.”

But there is both a late payment penalty and interest charged on unpaid taxes. The late payment penalty is 0.5 percent of the total tax owed per month. The interest rate on unpaid taxes is about 4 percent.

For people who have wages withheld and just owe a few hundred dollars, this won’t be too much of  a problem. However, for some it could get pretty pricey.

Warning to the self-employed

For those who are self-employed and must calculate their own taxes, underpaying or paying late can be expensive. If you are lucky enough to be self-employed and make a decent salary, the amount of taxes you have to pay can quickly get up into the tens of thousands of dollars. Four percent might be a low interest rate, but it adds up quickly

A lesson from the Secretary of the Treasury

Tim Geithner

Those who are working for international companies also have to calculate their own taxes. Even if you’re working for a company that is not based in the United States, you must pay social security and medicaid, which won’t automatically be taken out of your paycheck.

Our current Secretary of the Treasury, Tim Geithner, learned that the hard way. He had to go through rigorous scrutiny and criticism during his nomination process because he didn’t pay those taxes for a few years while working for the International Monetary Fund.

Ready, set, go!

So, long story short, if you file a tax extension and you owe money, don’t wait until Oct. 15 to find out how much. Get it done asap. You can file your taxes online for free, and quickly, at TaxAct.

More and more Americans are looking to payday loans to cover their bills. While the economy continues to suffer, people are finding themselves short of cash. An internet search for “payday loans” will bring you to a long list of lenders willing to extend emergency funds to the qualified consumer. More than ever, before people are relying on loans to get them the resources they need to pay bills, and taxes are no exception.

Tax day just past

April 15th just past and to Americans that means, tax day. Even President Obama recently admitted that tax day incites a frenzy of emotion in taxpayers, adding that he wants to “take the dread out of the deadline day.” The President is trying to reinvent the tax codes and rewrite supporting policies that encumber taxpayers, rather than help them. He acknowledges that for working families, April 15th is a day to fret and wonders if taxes were prepared correctly, if they would be ready before the deadline and also wonders how taxpayers will find the money to pay Uncle Sam.

On a positive note, the President stated that rather than think of the day as a dreadful deadline, it should be thought of as a reminder to elected officials that they have a responsibility to the people. That responsibility includes simplifying the tax codes for the working man, but still maintaining an all around level of fairness for those who know how to play the system. Years of loopholes and tax maneuvering have left the tax structure with a less than positive reputation throughout the working population. “I want every American to know we will rewrite the tax code,” states the President, “so that it puts your interests over any special interest.”

Would a rewritten tax code help?

It’s encouraging that the president is asking legislators to rise to the occasion by helping rewrite the tax codes. Hopefully it will bring a more easily read and understandable law to taxpayers. But what does that do for Americans now? It isn’t until the end of the year that the President is asking for these rewrites and April 15th, 2009 is here and gone. This new simplified tax code won’t be seen by Americans until 2010.

Tax payers need to find ways to help themselves

People who owe taxes are looking to payday loans to hold them off until their next paycheck. The quickness of faxless payday loans is becoming a standard in society when additional money is needed. Fortunately due to the rise in popularity, there are many lenders who are willing to advance funds to those who qualify. If a person has a job, a checking account and is over 18 years of age, there may be a lender willing to extend them quick cash.

Make the payday loan work for you

An increasing number of Americans are using the payday loan to pay taxes. With the struggling economy, finding extra money is difficult for everyone. Hopefully by next year the tax codes will be simplified and reworked to benefit the common man. Until then, it’s crucial to know how to handle April 15th and the payday loan might be the easiest answer.

From a Tea Party in Texas

We have all heard about the numerous Tea Parties going on nationally, thousands of which happened on Tax Day. Supporters of a conservative grassroots movement protested government spending, taxes and the economic stimulus package.

In Texas, many residents took to the streets with signs touting secession. While Texas Gov. Rick Perry did not come out and say that Texas should or would secede, some of his comments are being taken that way.

Politicalspeak

Here is the direct quote from Rick Perry:

“Texas is a unique place. When we came into the union in 1845, one of the issues was that we would be able to leave if we decided to do that. My hope is that America and Washington in particular pays attention. We’ve got a great union. There’s absolutely no reason to dissolve it. But if Washington continues to thumb their nose at the American people, who knows what may come of that.”

Some people have taken this to mean he is threatening secession, and a lot of Texans apparently are all for it.

Yee-haw, let’s become our own country

This implication of secession, however small or vague it may be, has gotten Texans riled up like a peace activist talking about military loans. Aside from posters attached to sticks at the Tea Party rallies yesterday, there are a few more signs that some conservative Texans are jumping on the secession bandwagon.

Brand-new blog “Texas Secede!” addresses whether it is constitutional for Texas to become an independent republic. The answer, according to the site, is that the constitution doesn’t say it can’t. The site also advocates pretty heavily that the state take advantage of this  not-necessarily-unconstitutional right:

Public opinion and ignorance won’t stop us from suggesting that secession is still a good idea for people who value their rights and personal liberty.

Blogger begs to differ

According to Texas Politics, Texas v White, a, 1869 U.S. Supreme Court case, said Texas cannot secede.

Wikipedia also reports that Texas v White says the Constitution prohibits states from seceding. However, Texas Secede! insists that … wait for it … no it doesn’t.

This year, you might get a whole bunch of little stimulus checks. But they won't look like this.

As of April 1 the “Making Work Pay” tax credit is in effect for working Americans. You probably read or heard about this back when the economic stimulus package was the No. 1 topic among news media. Well, now it’s here, and you might start noticing a difference in your take-home pay.

How much more?

How much extra cash you will see depends on your marital status, salary and how many exemptions you take. The credit works by withholding slightly less from your paycheck now, unlike most tax credits, which appear in your tax refund. Single taxpayers will probably get about $10 to $15 per week.

Who will not get the credit?

Of course, this tax credit will only go out to those who need it, so people who make higher salaries will still have the same amount withheld from their checks. The stimulus measure is not meant for people who already have enough money. That would be like taking out payday loans for things  you don’t need: a financially irresponsible idea.

For married couples filing jointly, you will only get the credit if your adjusted gross income is less than $150,000 annually. For single-filing workers, you will get the credit if your AGI is less than $75,000.

What do I have to do?

In order to get your “Making Work Pay” tax credit, follow these instructions closely: Do nothing. Well, OK, you do need to pick up your paycheck. But your money will automatically appear in your check without any effort from you. If you are like me, meaning you have direct deposit,  you don’t have to do a thing. Just spend  your extra dollars wisely.

What if I don’t have a job?

Look, ma! More coffee money!

Unfortunately, as you might surmise from the “Making Work Pay” moniker, this tax credit is only for working people in the United States. If you’re retired or on Social Security, you aren’t eligible for this credit. Likewise, this particular provision won’t increase your unemployment checks.

However, the stimulus package does include other types of help for unemployed Americans, such as extending benefits an additional five weeks.

Why make work pay?

The philosophy behind the “making work pay” tax credit is simple: try to get Americans to spend more money. It is similar in idea to the stimulus checks Bush issued last year, which gave workers $300-$600 in one lump sum.

That stimulus effort did not appear to have much effect. However, the Obama team is hoping that spreading out the money over several paychecks will make people less likely to stow it away in a savings account and more likely to spend the extra money on everyday items.

Governor David Paterson and top legislative leaders Sunday finished negotiations on the proposed budget for the state of New York. The governor, along with Assembly Speaker Sheldon Silver and Senate Majority Leader Malcom Smith rolled out the $131.8 billion package.

Yes new taxes

Critics, of course, had plenty to say about the governor’s proposals. The package raises taxes and ups spending. Paterson says taxes must be raised to rectify a $16 billion budget gap. The budget also eliminates a property tax rebate. In total, the plan brings in $7 million in new taxes and fees.

But before you New Yorkers run out and get payday loans, CBS reports that taxes will only be raised for the wealthiest New Yorkers.

A little help from the feds

New York state will receive $7.2 billion from the federal stimulus package. The biggest spending boosts are for education, although there are some pretty big cuts to education as well.

Less for the little guys

The budget includes cutting funding for community colleges in New York by $49 million. However, it adds $125 million in funding for the State University of New York. That will put the total funding for that university at $2.5 billion. It also give $86 million more to the City University of New York, for a new total of $1.4 billion.

It also adds $50 million to the tuition assistance program.

More on schools

As for primary education, public school funding will increase by about $1.1 billion. The  new version of the budget does not contain the $700 million cut in school spending Paterson proposed in December. The new spending will make New York one of the highest spenders in the nation on education.

Bottling up taxpayer money

5 cents

The budget adds to the state’s bottle bill. It requires a 5 cent deposit on water bottles in addition to the 5 cent deposit already required for carbonated drink containers. It ups the cigarette tax on cigarillos so it is equal to the regular cigarette tax.

In a first-of-its-kind event, President Barack Obama today held a town hall meeting in the White House that was broadcast live on the internet. He answered questions submitted to Whitehouse.gov before taking live questions from the audience in the East Room.

Taxing questions on taxes

One question from a small businessman in the East Room audience has gotten some attention in the blogosphere. He explained that all the profit he made was being reinvested in his business or going toward paying off his personal loans for his business.

However, he has to pay income tax on that money, even though he never sees a penny of it. To make matters worse, it puts him in the highest tax bracket. He asked what Obama will do to help him.

Might need some fine-tuning

Obama was pretty general in his answer. He assured the businessman that he was committed to lowering the tax burden on small businesses and start-ups. He added that a cut in capital gains taxes for small businesses will go into effect in about five years.

Public schools

Another online question addressed education: How does the president plan to restore education as a right and a core cultural value?

Obama said the education system needs resources and reform. He talked about teacher incentives and being open to charter schools. I thought it was a bit of a curve ball when he threw in: “We have a school system designed for the agricultural era” that gives children three months off in the summer.

Bringing it home

Obama also fielded a question about homeownership.

What benefits are in his programs “to those of us paying our mortgages, but living paycheck to paycheck,” an online questioner asked.

Obama said his efforts so far have lowered mortgage rates and opened up more FHA loans. This makes it easier for homeowners to refinance, he says.

If you are like most Americans, who are seeking ways to save or earn money any way they can, you might want to look to your tax forms.

This story by CNN Money contains some things I sure didn’t know about tax breaks and credits you can get. Check out these tips before you send in your 2008 taxes.

1. Losses on investments

Most people have seen the worth of their portfolios go down, down, down as the stock market flails. Did you know that you can claim losses on stocks, bonds and mutual funds on your taxes?

If you sold off investments for a loss and didn’t experience any gains, you can write off up to $3,000 in income on your return. That will lower your adjusted gross income and reduce the amount you owe. If you’re due for  a return, it could feel like an instant payday loan!

2. New tax credits!

You could qualify for brand spanking new tax breaks this year if:

• You pay property taxes and don’t itemize
• You bought a new home and didn’t own a home for the three years previous
• Your income is less than $75,000
• You and your spouse’s combined income is less than $150,000

3. Unemployed? Write off your job search

Unemployment made a huge leap in 2008. If you were one of the unlucky millions who lost their jobs, there is one teeny silver lining.

Money you spent on your job search, including costs of creating and printing your resume, is tax deductible. You can also deduct expenses for transportation to and from job interviews and the cost of career coaches.

Also, if you lost your job in 2008, you might be able to qualify for a rebate check. Check out the calculator at irs.gov to see if you are eligible.

Find even more ways to get the most out of your tax returns at http://money.cnn.com/galleries/2009/moneymag/0902/gallery.tax_tips.moneymag/index.html.

It’s been a torrid morning and it’s left me in a ratty mood. If I had staff working in my office I would fire everyone right now! However, mine is a one-man business. It’s kept pretty busy, or as busy as I want it to be. It allows for such pleasures as a nap after lunch, a visit to a grandchild, or an extra-long lunch hour with a friend. The office is a few steps away from the bedroom and it boasts all modern conveniences such as a computer, fax and telephone.

It’s not all fun and games

The biggest disadvantage of my business is the long hours – I work 24 hours a day. This doesn’t mean that I am working all the time, but the office is open to anyone who calls.

Financing the business

The financing arrangements are simple. I finance everything. I have a partner who makes no contributions at all. When there is a cash crisis, I apply for and receive a Payday Loan which sees me through to the next payday.

Why do I feel like the IRS is now my business partner?

My Partner the IRS

I have a partner, aka the Government, alias the IRS, also known as the Income Tax Department and secretly known by me at various times of the month as “The Bloodsucker,” “The Parasite,” “The Thief” and some shorter 4 letter versions of all the above.

My partner knows everything

Because we are such close partners, we meet regularly. I, as the active partner, divulge all the intimate secrets of the business. I tell him about my old clients and about my new clients. I boast about the amount of work I have been doing in order to properly impress him. He, being the sleeping partner, simply gazes at everything and remains silent.

The partners meeting

I was at his office this morning. We decided a long time ago to meet there and not in the place where I do the actual work. Unlike my desk which is always covered with stacks of papers, little notes on scraps of paper and the back of coffee-shop napkins and a hundred reference books, his desk is clear, containing only a computer screen and keyboard. Sometimes I wish I could be as organized as he is.

The partnership arrangement

We have a partnership agreement. It is simple and straightforward and is based directly on the sharing of income. This is what led to the argument this morning. After I had formally tabled the trading results for the past year, my partner looked at me, smiled, nodded his head in delight and said “thirty-seven point three percent.” I laughed and thumped the table with my fist saying, “very funny indeed! Got any other jokes for me?”

“I’ll check it,” he grumbled and went back to the keyboard and the screen and then said, “I beg your pardon, you are right. I made a mistake. Thirty-seven point one percent.”

This time I hit the top of his desk with the palm of my hand, sending off a loud bang and causing the keyboard to leap into the air.

My partner is upset

“There is no need for that,” said my partner. “We have an agreement, after all.”
“What about your contribution?” I yelled. “What did you do to justify your share?”
“I am upset by your attitude,” he said.
So my partner is upset? Who cares!

President Barack Obama has made several bold proposals in his budget plans. His biggest project is a plan to put $634 billion toward health care reform. It’s a spendy project, and it’s Obama’s job to figure out how to fund it.

Among his budget proposals, he has suggested limiting tax breaks for itemized deductions. That would only apply to families that make more than $250,000 per year or more.

Will people be less charitable?

Itemized deductions include tax breaks for charitable giving. Critics worry that if tax deductions are capped for wealthy people, they won’t donate as much to charity. The majority of donations to charitable causes come from the same income bracket that would experience the decreased tax breaks.

Obama’s proposal

The 2010 budget proposal that Obama has laid out calls for a 28 percent limit on the value of the tax break for itemized deductions. So, for every dollar donated to charity, people who make more than $250,000 would save 28 cents on their taxes.

Currently, the rate people save on itemized deductions is about 20 percent higher than the proposed cap. So the wealthiest people can save 48 percent on itemized deductions.

Bringing in big money

The cap on itemized deductions would raise $318 billion. That would get the president about halfway to his $634 billion health  care goal, which is aimed at making health care more affordable and available to everyone in the United States.

The itemized deduction cap would also apply to deductions for mortgage interest.

Charities worry about funding

Independent Sector, a coalition of charities and foundations, and the Council on Foundations  have said they are worried that they will get less funding as a result of the limit on tax breaks. A study from Indiana University says it’s possible that billion of dollars in charitable giving are at stake. Others say the effects of the change could be limited as far as charity donations go.

Two points of view

Washington lawyer Sheldon Steinbach says the proposal could hurt many groups, including the colleges and universities he represents.

“Any disincentive to charitable giving, especially in the current economic climate, will have an impact far beyond the black letter law. It will have an exponentially negative impact,” Steinbach says.

However, Stanford University associate professor Rob Reich says even if there is a decrease in charitable giving, the new health care system will be worth it. In a way it will balance things out.

“Is the good that will be done through health-care reform greater than the good that would have been done with the charitable projects of the wealthy people?” he says.

The great divide

Reich also points out that the charitable deduction favors the rich and is unfair to the poor. People with incomes too small to itemize get less of a break because they are in a lower tax bracket.

Obama believes the deduction cap is an important step toward a goal that will benefit the country as a whole.

“With this budget, we are making a historic commitment to comprehensive health-care reform. It’s a step that will not only make families healthier and companies more competitive, but over the long term it will also help us bring down our deficit,” Obama said.

You may think that with all of the other problems the government is dealing with they don’t have time to worry about whether you did your taxes right. However, the opposite is true.

In the last 10 years the IRS has more than doubled the amount of audits it conducts. It uses a complicated formula to decide who it will audit, but there are a few steps you can take to decrease the chances that it will be you.

Take advantage of technology

There are plenty of web sites out there that will let you submit your taxes online. Filing electronically is helpful in a lot of ways. Forgetting to sign tax returns is a very common mistake, but tax software and web sites won’t let you submit a return without an electronic signature.

Most sites and software programs also have built-in programs that check for mistakes on your paperwork so you can catch and correct mistakes before you submit your taxes.

Keep track of donations

Taxes are a good example of a time when doing the right thing can come back to bite you. Deductions for large charitable donations will raise red flags for the IRS. Average charitable donations are usually no more than 2 percent of a person’s income. If you have donated  more than that, make sure you explain what the donation was for and why it is so big. Also, it’s very important to include receipts.

Proof to back up big deductions

Other large deductions will raise red flags, too. Many medical bills can earn deductions, but if you have an especially large medical bill that amounts to a large deduction, make sure you have careful documentation. Make sure you have copies of your bills, especially if they amount to more than $50,000.

If you’re itemizing deductions, remember that any deductions for meals or entertainment that cost more than $75 requires a receipt.

Extension does not defer payment

If you file for an extension on your taxes, remember: An extension only puts off submitting your tax forms. It does NOT put off the date you must pay if you owe money to the IRS. Any taxes you owe are due by April 15. If you can’t pay the full amount you owe, you must set up a  payment plan before April 15.

Steer away from credit cards

Already millions of Americans have used credit cards to pay off their taxes this year. Using a credit card to pay tax bills is a huge mistake. With convenience fees and interest, it could take years to pay off a tax bill. When people owe taxes, the average amount is $2,200. Including convenience fees, if a person made minimum payments at 12 percent interest it  could take up to 14 years to pay off that amount.

Unemployed or underfunded

If you owe less than $25,000 in taxes and you can pay it off within five years, you can arrange a payment plan with the IRS. You will have to pay interest, but the rates are generally a lot more favorable than a regular loan. And the IRS interest rate will be a fraction of a credit card interest rate.

Obama talks "bold action and big ideas."

In his speech last night, President Barack Obama reiterated the point that access to easy loans is an important factor in getting our economy back on track.

He also emphasized that “education, health care and energy were a vital part of the long-term sustainability of the economy,” says The New York Times.

Why easy loans are important

When speaking about the banking system, Obama emphasized that he wasn’t out to give handouts to failing organizations.

“It’s not about helping banks, it’s about helping people,” he said.

The banking system must be stabilized, he said, so that credit will start working normally again. If Americans can get easy loans, they’ll be able to buy cars and houses again, and the economy will grow again.

Restoring confidence

Obama’s tone was optimistic and encouraging throughout his speech. He spoke about the United States as a nation that does not quit. He said we must seize “opportunity from ordeal.”
He told stories about a bank executive who split his $60 million retirement bonus with all of his employees. He hailed the man as a great example. He assured listeners that the days of executives padding their paychecks with taxpayer money are over.

Not nonpartisan

News organizations are pointing out many of his ideas go directly against Republican ideals. He is proposing raising taxes on the wealthy, revamping health care and reversing climate change.

Obama says he does not want bigger government, but he is headed toward having a more activist government.

No baby steps

One New York Times writer suggests:

“Another approach might have been simply to preach patience, to seek time for his initiatives to take root.”

However, in Obama’s speech he made it clear that he’s confident that we, as a nation, can turn around the economy while still accomplishing other important goals. He has not abandoned the issues he focused on during his campaign.

Where credit is due

After a little more than a month in office, Obama enjoys a fairy high approval rating. It’s different depending on whose poll you look at, but consensus is that a healthy majority has faith in our new leader.

Obama no doubt will become even more popular if his plan to right the economy works and easy loans start flowing to the public once again.

Friday, Arnold Schwarzenegger signed California’s much-debated budget, which includes quick loans, hefty tax increases and deep spending cuts. So what’s next?

The tax man cometh

New income taxes, sales taxes and vehicle license tax will kick in on April 1, according to the Los Angeles Times. The dependent tax credit will be reduced, which will apply when Californians do their 2009 tax returns.

Switcheroo

Strangely, about seven weeks after the tax increases go into effect, California voters will get a chance to approve or deny them.  Voters must agree pay the tax increases for the next two years. Well, the next one year and 10 months or so.

Banking on the lottery

On May 19, the same day they vote on the tax increases, voters will weigh in on all ballot measures related to the budget. This is where the quick loans come in.

In addition to the tax increases, Californians will vote on whether to borrow $5 million against future lottery proceedings. That way the state can spend future lottery purchases now.

How much?
Sales tax will go up by 1 cent on the dollar. Obviously, how much this tax costs individuals depends on how much money they spend. The vehicle license fee will double, bringing the total fee to 1.15 percent of the car’s value.

Income tax will go up 0.25 percent. For those on the lower end of the income scale, this will cost about $53 per year. For those making $1 million or more who have two dependents, it will cost about $2,250. The dependent tax credit will be reduced by $210 for everyone.

“According to a legislative analysis of those four tax increases, an average family of four with an annual income of $75,000 would pay $963 more a year in taxes.”

More budget ballot

There will be a few more items for Californians to vote on come ballot time. The budget proposes reducing spending on mental health programs by $226. It also takes $608 million from programs aimed at children younger than 5 years old. Voters will have to approve these measures for them to go into effect.

Another ballot measure would put a cap on future state spending — if the voters say the tax hikes can stay in place four years instead of two.

No free lunch for legislators

State leaders’ salaries could take a hit, too.

A constitutional amendment on the ballot would “eliminate salary increases for state officers, including the governor and Legislature, in years with a projected budget deficit.”

Vote heard around the world

Budget negotiations in California were not pretty this year. California requires that two-thirds of legislators approve the budget. After two weeks of debates and battles, they were still coming up one vote short.

Democrats gave some last-minute concessions and won the vote of Republican Sen. Abel Maldonado. According to Central Coast News, Maldonado became “an instant celebrity.”

What happens?

If Californians vote down the tax increases and spending cuts, it will be up to the legislature to figure out how to fix the hole in its spending plans. The legislature may need to try to find more ways to get quick loans in order to avoid another deficit next year.

Payday loans can be used as your ultimate weapon to settle tax issues. If you have tax payments due, if you are scurrying around to arrange funds to help you through to your next payday, then this article will shed light on where to find the resources you need. Maybe it is our subconscious rebellion with tax payments that even if though we know we have to pay our taxes every year we hardly ever take steps to set funds aside to make those tax payments.

How many years, after we have found a way to make that tax payment, do we promise ourselves we will not let this happen again, only to have April 15th sneak up on us again?  We keep repeating our follies year after year. Luckily, year after year, a payday loan is there for us.

Next year

Getting a payday loan each year may not be the most economical way to pay off your tax burden but a useful remedy when you do not have any other choice and your payment is due. If you use a bit of common sense, you won’t be in this predicament next year.

How can it be done?  Either set up a savings account for next year or set up some sort of investment program.  If you choose a good investment plan, you should easily have the money you need next year to pay your taxes.  There are several good investment ideas on this blog. You will also get the added benefit of a tax exemption if you invest in the right investments.

How to take out a payday loan

If you are unsure of how to get your payday loan, learn how to do it here. Make an application for these loans either right here, online, or over the phone. The easiest way is to press the apply button right on this page.  Payday loans through Personal Money Store are short term loans for small amounts of up to $1500.

Once your application is approved, you will get your loan funds transferred to your bank account usually within 24 hours. At Personal Money Store, typically there is no credit check or faxing, no charge for an application fee and no hidden charges. Be sure to read the terms and conditions provided by your lender before you sign.

So, if your taxes are bogging you down, use a payday loan to help you out.

Tom Daschle

Quick payday loans can help consumers with financial emergencies, but I don’t think they’ll be much help for Tom Daschle.

Senator Jim DeMint told President Barack Obama he shouldn’t hire Daschle to be health and human services secretary. Daschle made a $134,000 income tax error. Though he has paid back the money, plus interest, DeMint contended Daschle is unfit for the position. Daschle has since withdrawn his name from consideration.

Quick payday loans no help

While most Americans’ problems could be solved with some extra cash,  Daschle needs help in the credibility department — not the credit department. DeMint says Daschle knew about his tax errors long before his nomination, before he reported them and before he paid them back. According to DeMint, this constitutes a “problem with integrity.”

More tax troubles?

The White House has run into trouble with another nominee, who withdrew her own name from consideration today. Nancy Killefer, nominated for Chief Performance Officer, has decided not to accept her nomination.

Killefer withdrew her name because she failed to pay unemployment taxes for her household help.

“I have … come to realize in the current environment that my personal tax issue of D.C. unemployment tax could be used to create exactly the kind of distraction and delay those duties must avoid. Because of this I must reluctantly ask you to withdraw my name from consideration,” Killefer wrote in a letter to Obama.

Two for the money

Nancy Killefer

Daschle’s decision to withdraw his name from consideration came so closely after Killefer’s that the two appear to be linked. This morning, it looked as though Daschle  would be nominated “barring some other major revelation.” Hours later, after Killefer withdrew her name, Daschle did the same.

More than quick payday loans

Critics have been quick to point out that already-appointed Treasury Secretary Timothy Geithner also had tax troubles. However, Geithner’s mistakes amounted to about $34,000, which pales in comparison to Daschle’s $134,000 error. Considering Americans are taking out quick payday loans of $500 to $1,500 in order to make ends meet, $134,000 is a pretty big chunk of change.

President Barack Obama recently nominated Geithner for the position. The Obama team is defending Geithner, saying the tax discrepancies were “an honest mistake.”

The errors

Because the IMF is an international organization, it does not withhold employees’ wages for Social Security and Medicare. But those employees are responsible for paying those taxes on their own. Just as payday loan recipients are responsible for paying their loans back.

The Senate Finance Committee’s official statement says he “failed to pay self-employment taxes for money he received while he working for the International Monetary Fund.” The IRS found errors in 2006 when they audited Geithner for 2003 and 2004, for which he owed $16, 732 in taxes and interest.

Geithner’s response

After the 2006 audit, Geithner promptly paid the amount owed in full. After Obama nominated him for the Treasury Secretary position, he voluntarily amended his 2001 and 2002 taxes. He found that he owed $25,970 in taxes and interest and paid that amount in full.

Obama spokesman Robert Gibbs says that Geithner’s errors are a common mistake. Geithner discussed his tax mistakes with the Senate finance committee, and he said the errors were unintentional. He also emphasized the fact that he repaid the full amount of taxes and interest that he owed.

Support and dissent

Democrats are fully supporting Obama’s nomination of Geithner.

“He’s the right person to help lead our economic recovery during these challenging times,” Gibbs said.

Republicans have not specifically said that they believe his tax errors should prevent Geithner from being appointed. However, at least one Republican Senator objected to holding the nomination hearing on its originally scheduled date, Friday. The hearing is currently scheduled for Jan. 21.

The numbers game

The consensus among both parties seems to be that Geithner made an honest mistake. He’s human, after all. Messing up on his tax forms doesn’t make him a bad person or a dishonest person. I’m sure most of us have done the same thing.

So if average Americans can mess up on their taxes and then simply be forgiven if they pay it back, should Geithner receive the same courtesy? Well, I just have one thing to point out. The average American is not in charge of the entire nation’s money. I’d be lying if I didn’t say I was concerned that the would-be Treasury Secretary doesn’t know the nation’s tax laws.

Room for growth

In his defense, the errors happened several years ago. He was intelligent enough recently to re-do his own taxes and discover the amount he owed on his own. To me, that shows he is good with numbers. It also shows that he believes in doing the right thing. He could have saved 25 grand, but instead he basically turned himself in.

It is disconcerting that the possible future Treasury Secretary has had problems with money and numbers. However, it is possible that he has learned from his mistakes and grown as a politician and an itellectual since then.

What about that other thing?

Those of you who have already read the news reports about Geithner know there is another issue being discussed. For a short time, Geithner’s housekeeper, an immigrant, worked for him after her work eligibility had expired.

To me, this is a non-issue as far as Geithner’s appointment is concerned. The woman he employed was married to an American citizen, and thus should have been considered a citizen herself. I don’t think this is an issue of whether Geithner made a mistake, it’s an issue of flaws in immigration policy. And that is all I have to say about that.

You decide

What do you think? Should Geithner be appointed? You can leave your comments here on your payday loan source’s Money Blog.

The men in black suits who never give up

You can count on them. They never go to the wrong address. And they never forget you. It takes a payday loan to see one of these guys reverse back through the garden gate.

Grandpa’s theory on taxes

My wise old grandfather once told me, on the day I was crying about paying my very first income tax payment, that it was a good sign. “Paying taxes means you are making money,” he explained. “So you have to give the government their share. Think of all the things they do for you. No matter how much tax you pay, you will never have to pay one hundred percent of what you earn. There will always be something left for you. So pay the taxes and smile, my boy. You are winning!”

Okay, grandpa, may you rest in peace, I have always adopted your attitude toward paying taxes.

My current tax rate is 47%, probably double what grandpa paid. Half! I am paying half of what I earn to the government. I get the use of the money for most of the year and I pay small amounts in advances or in monthly installments during the year, but there’s always a big hit in about April, when the income tax department gets their act together and goes out hunting. And that’s when I need a Payday Loan.

My theory on taxes

My attitude towards taxes is simple. I do not wish to pay them. The government should find another way of raising money, especially the big money. How about hiring one of these major rip-off artists like that chap Bernie, and put him to work on something that we will all benefit from. The guy managed to raise 50 billion for himself. Imagine what he could do with the government backing him.

Maybe I should work less?

Feeling rather stupid and completely counter-productive, I did the exercise to see if there is a real difference between working less, earning less and paying less tax, as opposed to working more, earning more and paying more tax. The difference was not dramatic but I am still better off working. As grandpa said, they never hit you for one hundred percent, it just feels like it.

I also found that I was thoroughly disgusted with myself for doing such an exercise – this is me investing in the possibilities of working less? But the culprit here is actually the government who, through imposing these high taxes, is putting these thoughts into my mind. Make it worth my while, Mr. Government and I’ll work many more hours per day!

Facing the showdown

I will pay my taxes because I am a law abiding citizen. I will have to take a payday loan in order to make the payment and I may even have to extend the payback period for more than one month, but I’m sure they will agree to this. Good thing the government isn’t into the payday loan business as well!

Haven’t you noticed that when it comes to money everybody wants their hands in your pockets. Every service comes with a fee and don’t forget a tax as well.

Taxes today consume about 43% of the average American’s paycheck. We are taxed upon making the money, and on everything we buy, or consume afterward such as groceries and gas.

When is enough, enough?

What’s even worse however is that once our heavily taxed and hard-earned American dollars finally pay off our personal assets, our beneficiaries get taxed on what is willed to them at our death. After a set amount of about $10,000 a year, you can’t gift anything more without the receiving party being taxed on the gift you have given.

Oh, and did I tell you there is a death tax as well. Yes it’s true. The IRS doesn’t stop with the just taxing the living. They get you when your dead, too. I will spare you the story however, and let you die in peace.

Can You Make Your Own Financial Decisions?

The point I am trying to make is that if it involves money it almost always involves the government who tells us what we can and cannot do with the money we have already been taxed on.

Shouldn’t we have the right to make our own decisions with our own money? After all, we have already paid our dues. Is it right that giving the money away should cost us more?

You see a lot of this frustration in the economy today. As of lately, the bailout bill has caused the greatest outcry as the federal government has stuck the US taxpayer with over $700 billion dollars of debt, the price to bail out the nation’s biggest banks who helped create the crisis in the first place.

The Last Frontier

There is a last frontier of financial freedom, that although not left untouched by government legislation, still operates quite freely. This industry is the payday loans industry.

There are not many places that you can go today and get quick cash without a drawn-out loan process that you expect to see in places like the bank. Payday loans can be applied for in person or online, approval takes just minutes and deposits are made in as little as two hours.

The costs associated with payday loans are minimal, usually between $15 and $25 dollars per $100 borrowed. This may seem high for some but you have to take into consideration the risk that the company is taking in consumers to provide by providing them funds almost instantly and often time without a credit check.

This is a service that will serve you well in times where you need payday loans. Good examples of these times would be like when you have fallen short on your mortgage or car payment. Avoiding the late penalties by using a payday loan can save you quite a large sum depending on how much you have fallen short and therefore how much you need to borrow.

Many states are losing this privilege as the government and big bank lobbyists who want the consumers to come to them first wrestle the payday loan industry to shut them down or lower the interest rates to a point that they cannot stay in operation. You may recall Ohio passed legislation that capped interest rates to such a low APR that for every hundred dollars loaned, only about a $1.08 could be made, and 79 of these payday loan stores had to close doors.

Know that amidst all the decisions that are be taken away in the financial arena, you still have a place to go that understands your needs and we aim to provide for you anyway that we can.

-Personal Money Store

Your Online Source for Payday Loans