TAX ADVICE | BIDaWIZ Blog

SALES TAX

More Dollars Going to New York Sales Tax

By The BIDaWIZ Team on October 28th, 2010 at 2:58 pm

About four weeks ago, the 4% New York State sales tax for clothing & footwear items priced below $110 was reinstated. Yeah, that’s right shoppers. If you purchase a pair of jeans now for $85 in say New York City, you will have to pay $85+(4%+.375% metro tax) or $85+$3.71 for a total of $88.71. Previously this year there was no sales tax for this type of purchase. Now that we are entering the holiday season, it is important for both consumers in the New York State area and clothing/footwear merchants to understand this change. Read More.

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TAX PLANNING

Why A Roth IRA Makes Sense For a Teenager

By The BIDaWIZ Team on October 21st, 2010 at 6:20 pm

As we all know, many teenagers work during the summer months and in some cases throughout the year. Yet, very few of them actually take advantage of the tax benefits from contributing to a Roth IRA. It's a shame because the investment growth & reduction in future tax liability can be huge. .

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SALES TAX

Is California State Sales Tax Ever Coming Down?

By The BIDaWIZ Team on October 20th, 2010 at 6:12 pm

Despite desperate calls from small business advocacy groups to implement fiscal policies that spur economic growth, California maintains the highest state sales tax rate in the country. A whopping 8.25%. To refresh your memory, California recently (4/1/09) increased the state sales tax by 1% to compensate for the massive budget crisis. The good news is that the 1% “temporary” increase is set to expire on June 30, 2011. But, with all of these sales tax changes, how should small businesses prepare their books? Read More.

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STATE INCOME TAX

Where Is My California State Tax Refund?

By The BIDaWIZ Team on October 19th, 2010 at 3:13 pm

Californians seem to get no breaks. State income tax refunds still have not been issued to both individuals & businesses due to the State’s “Cash Flow Problems.” That can anger many taxpayers because essentially they have given their government a loan & haven’t gotten paid back on time. So how long do these taxpayers have to wait for tax refunds? Read More.

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TAX ISSUES

Why Is My Tax Refund Lower Than I Expected?

By The BIDaWIZ Team on October 18th, 2010 at 7:58 pm

After filing a tax return, most taxpayers that are entitled to a federal or state tax refund are usually content with the amount of the check. However, this is not always the case, as there are instances in which the tax refund received is much lower than the taxpayer initially expected. Find out some of the likely causes for this lower than expected tax refund scenario. .

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TAX PLANNING

Managing Your Out of Pocket Expenses

By The BIDaWIZ Team on October 13th, 2010 at 5:38 pm

Most of us have been in the situation when our employer requires us to travel on a business trip to another state or country. Unfortunately, the employee is usually stuck paying for the out of pocket travel expenses which, if mismanaged, can hurt their tax efficiency & become devastating to their personal credit. .

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TAX PLANNING

How Do 529 Plans Compare to Other College Saving Options?

By The BIDaWIZ Team on October 11th, 2010 at 3:33 pm

In our last post entitled, "When a 529 Plan Doesn't Make Sense," we explained how a Roth IRA can be a better option when saving for college. While this is generally true, there are instances when a Roth IRA isn't completely feasible for a family. If this is the case, it is important to know exactly how 529 Plans compare to other college saving options. .

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TAX PLANNING

Planning For Capital Gains Tax in 2011

By The BIDaWIZ Team on October 6th, 2010 at 5:22 pm

The decision to sell this investment now or wait until next year is becoming more and more important. Tax rates across the board will likely start to increase in 2011 with long-term capital gains tax increasing at least 5% from 15% to 20% or even higher. Therefore, it is strongly advised to review your portfolio and the impact that a transaction will have on your tax liability, if any. Read More.

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TAX PLANNING

When a 529 Plan Doesn’t Make Sense

By The BIDaWIZ Team on October 5th, 2010 at 1:51 pm

Sending the kids off to college is perhaps the 2nd most expensive event in a parent's lifetime other than buying a home. It is so expensive today with rising tuition costs & savings accounts continuing to dwindle as a result of the financial crisis. To prepare for the high cost of college, we often hear financial planning experts instruct parents to setup a 529 Plan account. While this can be sound advice, there are instances in which a 529 plan doesn't make much sense at all. .

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TAX PLANNING

When Should I Update My W-4 Form?

By The BIDaWIZ Team on September 22nd, 2010 at 9:10 pm

Maybe this year you tied the knot or changed jobs or experienced some other important life event. If this is the case, it is time to think about updating your W-4 Form. For those that forgot, your current employer gave you a W-4 Form when you first started working. On that form, you had to claim allowances so that your employer would take out an appropriate amount of withholding taxes from your paycheck. .

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