- Days left
Are you concerned about how the coming changes in Washington might affect your tax burden? Considering how little I earn on an annual basis, I'm not too worried about it myself. In fact, I'll probably be scheduled to receive a modest handout. However, an Associated Press report, provided by ESPN, indicates that the personal agents who serve baseball players are already looking for ways to side step the coming income tax increases.

Under a potential Obama tax plan, income earners who receive more than $250,000 in annual compensation will see their top tax rate raise from 35 percent, up to 39.6 percent. That can take away a whole lot of your hot dog money if you're one of "the boys of summer." A player earning a contract salary similar to Jose Canseco, who earned $3 million in the 2000 season, now has good reason to look for some more tax loopholes.

Big salary baseball players won't be the only ones affected by these tax changes however. There are a whole lot of Joe the Plumber types who will feel this potential new tax grab. For instance, when I operated my feed store, I had gross sales of $249,000 for the last year I operated that shop. Because I operated as a sole proprietorship, that money was taxed as adjusted gross personal income. An increase, such as the one we're now looking at, would probably have hit me right between the eyes eventually. Never mind the fact that on a good week I only took home about $600 in actual, pre-tax, personal income.

So, as you quietly accept the coming tax increases, which you believe are simply taking from the rich, and giving to guys like me, say a little prayer for Joe the Plumber, Frank the Electrician, and Harriet the Beauty Shop Owner. They have their money taxed before they get to put it back into their businesses. That's where our "change" is coming from.

Increase your money and finance knowledge from home

How to Buy a Car

How to get the best deal and buy a car with confidence.

View Course »

Getting out of debt

Everyone hates debt. Get out of it.

View Course »

TurboTax Articles

Amending Your Income Tax Return

What if you've sent in your income tax return for a previous year and then discover you made a mistake? You can make things right by filing an amended tax return. And, don't think an amended return will automatically cost you money; it's perfectly okay to change a return to capture a tax break you missed the first time around.

How to File Taxes with IRS Form 1099-MISC

If you receive tax form 1099-MISC for services you provide to a client as an independent contractor and the annual payments you receive total $400 or more, you'll need to file your taxes a little differently than a taxpayer who only receives regular employment income reported on a W-2.

What If I Did Not File My State Taxes?

At the time of this writing, the only states that do not charge a state income tax are Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming. If you live or earn money in one of the other 41 states or the District of Columbia, you may need to file a state income tax return by April 15. It is a separate and independent requirement from filing your federal tax return and failure to file it on time may result in interest and penalty charges.

Add a Comment

*0 / 3000 Character Maximum