Tax Free Weekend – Success or Bust?

tax free

This weekend in tax free weekend and people will be lining up everywhere to get items that they want at a “great” discount. And usually, with a deal like this, people tend to purchase items with a larger price tag, such as TVs.

But is tax free weekend really all it’s cracked up to be? Experts say that you would be better off with any regular sale that a store is having that offers 20% off. When you get down to the nitty gritty, tax free weekend only takes off around 6% of your purchase. “‘Tax free’ sounds impressive but it’s only about a 6.25% off sale, compared to routine advertised store sales of 20% off or more,” states Joseph Henchman from the Tax Foundation.

The reality of all this is that tax free weekend is a good idea, but not as good of a bargain as everyone makes it out to be. You can save much more by just going to a regular sale at the store any other time of the year. Feel free to go out and enjoy the weekend, but be aware of how much you spend and when other sales will be occurring for those bigger items, in case you can get a better deal another time in the near future.

What is your take on tax free weekend?

http://taxfoundation.org/blog/massachusetts-approves-last-minute-sales-tax-holiday-again?utm_source=twitterfeed&utm_medium=twitter&utm_campaign=Feed%253A+TaxPolicyBlog+%2528Tax+Foundation+-+Tax+Foundation%2527s+%2522Tax+Policy+Blog%2522%2529

Wealth in America

wealth

What does wealth in America look like to Americans? Most of us probably look at celebrities and how they have large homes with six exotic cars in the driveway and describe that as wealth. Others just believe it is having enough saved for financial emergencies. And some may not even have a concept of what wealth looks like.

But many wealthy Americans do not view themselves that way. Maybe they think they have just enough or they are not satisfied with the amount of money they have in savings. Brad Tuttle (TIME) states, “Compared with the huge portion of the population that barely has any savings — about half of Americans don’t have an emergency fund that’d cover three months of expenses — it sure seems like the people in the survey are doing quite well financially.”

Our views on wealth are also varied when it comes to our location in the country. Certain states might have a very high bar for being considered wealthy or rich, such as New York or Massachusetts. Other states, like those in the Mid-West will probably have a lower expectation of what rich is compared to New England. Expenses in some areas almost require people to be wealthy so that they can afford to pay the bills.

Wealth is a continually varying thing and many people have differing views on what wealth looks like in our country and in our world. There are too many variables that we cannot truly pinpoint what wealthy looks like for each individual person

What is your view on wealth, and what do you consider wealth to look like? Comment below.

http://business.time.com/2013/07/24/what-it-means-to-be-wealthy-in-america-today/

The Skinny on Vacation Homes

beach house

Do you have a vacation home, condo, apartment, etc. that is weighing you down financially? The IRS has some useful tips on how to rent your property so that you can make a few bucks while you are away from your beloved abode. They have information on how renting works with your taxes as well, so that when the time comes, you are not confused about how your second property will effect your taxes.

http://www.irs.gov/uac/Newsroom/Renting-Your-Vacation-Home-1

Comment below with thoughts!

RI Tax for Unemployment Under Scrutiny

Rhode-Island-facts-rhode-island

Rhode Island is trying to figure out how to best handle it’s unemployment tax. Many companies will hire an employee and lay them off for a season when their business is slower. They will then rehire them after a period of time once business picks up again and there is a need for more workers. Rhode Island’s unemployment tax is the highest in the nation, as well, which is what is causing much of this new questioning.

“They point to a pattern that suggests some businesses, despite the high costs, are finding the tax to be a real bargain. These businesses lay off on a regular basis, which raises their tax bills. But even with the extra money they pay in, the return on investment is bigger. That is, their contributions fall short of what the fund pays out to their laid-off employees.” (Providence Journal)

What is your take on this new policy? Do you think it will help businesses?

http://www.providencejournal.com/breaking-news/content/20130622-r.i.-unemployment-tax-targeted-as-unfair-bad-for-business.ece

Household Employment

To Tax Or Not To Tax

Does it ever confuse you on your taxes when they ask you about household employment? Stay-at-home moms probably feel as though they fall under that category. But really, does anyone actually know what this means?

Massachusetts posted this article/guide on how to determine who counts as household employment or not to help people like you and me figure out who we are taxed on and who we are not. Now you can hire that pool boy and not worry about trying to remember if his labor is taxable or not.

http://www.mass.gov/dor/individuals/taxpayer-help-and-resources/tax-guides/household-employment-tax-guide.html