Champ Money

Do you enjoy paying taxes?

We’re been reviewing some of the leaked contents of the House Democrats Stimulus bill. While there are some good items listed, there’s also plenty of waste. Keep in mind, you – the taxpayer – will be paying for this.

Needed?

• $2 billion earmark to re-start FutureGen, a near-zero emissions coal power plant in Illinois that the Department of Energy defunded last year because it said the project was inefficient.
• $246 million tax break for Hollywood movie producers to buy motion picture film.
• $650 million for the digital television converter box coupon program.
• $88 million for the Coast Guard to design a new polar icebreaker (arctic ship).
• $448 million for constructing the Department of Homeland Security headquarters.
• $248 million for furniture at the new Homeland Security headquarters.
• $600 million to buy hybrid vehicles for federal employees.
• $400 million for the Centers for Disease Control to screen and prevent STD’s.
• $1.4 billion for rural waste disposal programs.
• $125 million for the Washington sewer system.
• $150 million for Smithsonian museum facilities.
• $1 billion for the 2010 Census, which has a projected cost overrun of $3 billion.
• $75 million for “smoking cessation activities.”
• $200 million for public computer centers at community colleges.
• $75 million for salaries of employees at the FBI.
• $25 million for tribal alcohol and substance abuse reduction.
• $500 million for flood reduction projects on the Mississippi River.
• $10 million to inspect canals in urban areas.
• $6 billion to turn federal buildings into “green” buildings.
• $500 million for state and local fire stations.
• $650 million for wildland fire management on forest service lands.
• $1.2 billion for “youth activities,” including youth summer job programs.
• $88 million for renovating the headquarters of the Public Health Service.
• $412 million for CDC buildings and property.
• $500 million for building and repairing National Institutes of Health facilities in Bethesda, Maryland.
• $160 million for “paid volunteers” at the Corporation for National and Community Service.
• $5.5 million for “energy efficiency initiatives” at the Department of Veterans Affairs National Cemetery Administration.
• $850 million for Amtrak.
• $100 million for reducing the hazard of lead-based paint.
• $75 million to construct a “security training” facility for State Department Security officers when they can be trained at existing facilities of other agencies.
• $110 million to the Farm Service Agency to upgrade computer systems.
• $200 million in funding for the lease of alternative energy vehicles for use on military installations

You decide…

Did you know that you can prepare and e-file your income tax completely for free this year regardless of your income? Last year the IRS had strict limits on who could use free tax prep software.

If you want to file for free, go to http://www.irs.gov and you’ll see a list of participating software vendors.

Be aware that certain vendors won’t let you do the free prep and e-filing if your income is above $56,000/year, so take note of each one’s individual restrictions. But you’re guaranteed to find some that certainly will this year. Select vendors will also allow you to do your state income tax as well.

Many people are looking forward to the proposed Obama tax cuts – which will be realized through reduced employer payroll deductions rather than some sort of check or direct deposit as was done previously.

Yet, many of these same people already have too much withheld from their paychecks.

If you get money back every year after paying taxes, you’re having too much withheld – and you’re providing the government with an interest-free loan.

Now is the time to review your tax withholding options. Those extra dollars should be in your pockets throughout the year, not just in April.

Did you just get a big tax refund?

Adjust your tax withholding if you’re getting large tax refunds and use the increased take home pay for savings and investing during the current year, rather than next.

Never, ever, give the government an interest-free loan.