Archive for April 16th, 2018

HELP! I GOT AN EXTRA TAX REFUND!

So you haven’t even filed your taxes yet and you got a refund from the IRS. Free money, right? Not to mention the time you just saved gathering all the paperwork, going to your financial advisor or accountant, and filing your 1040.

Unfortunately, nothing with the IRS is ever that easy. It may be an actual government error (in which case you are liable for the money if and when the correction shows up), or you may have just become an unwitting participant in the latest tax scam. Read more…

What Was The Personal Exemption Anyway?

One of the biggest changes in the 2017 tax bill is eliminating the personal exemption. But what exactly was it? And how might this affect you as you file your taxes this year?

The personal exemption originated, along with the modern income tax itself, in the 16th amendment to the US Constitution. It originally exempted the first $3000 of each earner’s income, somewhat above the average income at the time (and equivalent to about $65000 modern dollars). This was in keeping with the intent of the tax: to be a progressive tax, on the “excess” income of high earners. Read more