Many Americans, including myself, feel that the stimulus checks being sent out by the US Government won’t work. A recent CNNMoney.com poll in which 1,000 people were polled, states that 82% of Americans think the rebates won’t work. Almost half the people said they would use the check to pay off bills, and another 22% said they would put the money in the bank.
Personally, I’m going to use my check to start at Roth IRA. How about you, what is your stimulus check earmarked for?
I stopped by my CPA’s office this morning to pick up my taxes. Unexpectedly, I owe $3,800 to the feds and $500 to the state I live in. At the beginning of 2007, I changed my withholdings with the expectation of offsetting the taxes I would owe. It appears those changes didn’t do as much as I expected them to. I did a few rough calculations before sending my paperwork and tax-related materials off to the CPA and my math showed that I would owe very little, if anything. I must have miscalculated or forgot to include something. To be sure, I checked over the forms tonight when I got home from work and they all appear to be correct.
This is not the first year that I’ve owed a sizable amount to the IRS. Although I have the money to pay the taxes, it still hurts a little to part with it. The main reason I end up owing each year is due to the income I make on the side from Web development work and several Web sites I run. I could lessen the sting each April by making quarterly payments, but I’d rather make the money work for me during the year in a high-yield savings account. I may have to rethink this strategy.
I need to make some time to meet with my CPA to see what steps I can take to reduce my tax bill in the future.
If anyone out there has some tips or ideas, I’d like to hear from you.
