Personal Finance Answers

Archive for January, 2010

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This is the first of a series of 2007 Tax reference sheets that I’ll be sharing with you over the next month or so. This one focuses on some of the major federal income tax key numbers. I’ll do future ones for estate planning, retirement planning and business planning in the not too distant future so stay tuned.
Since federal income taxes are such a large part of most peoples life or expenditures, I thought that you might like a summary or reference sheet for some of the important figures for 2007.
Many people believe that if someone is in the 28% tax bracket, they pay all taxes due at the rate of 28% of taxable income. This is not correct. A couple having a taxable income of $125,000 does not pay 25% federal income tax on ALL of the taxable income… but only on everything over $63,700. The first $15,650 is only taxed at 10%, the taxable income from $15,560-$63,700 would be taxed at 15% and so on. The figures below is taxable income (after deductions and exemptions).
I’ll start out with the tax brackets for the 2007 tax year.
The figures below show the various “steps” on how the
marginal income brackets are progressively taxed higher.
Married, Filing Jointly:
$zero – $15,650 is taxed at 10%
$15,650 – $63,700 is taxed at 15%
$63,700 – $128,500 is taxed at 25%
$128,500 – $195,850 is taxed at 28%
$195,850 – $349,700 is taxed at 33%
over $349,700 is taxed at 35%
Married, Filing Separately:
Note: Often times it make more sense for a married couple to file taxes separately for either tax reduction strategies or for non-tax reasons. Your tax advisor should help you decide if there are important reasons for YOU to take advantage of this filing status.
Tax brackets for Married Filing Separately: Simply cut the above taxable figures in half for those six tax brackets
Single:
$zero – $7,825 is taxed at 10%
$7,825 – $31,850 is taxed at 15%
$31,850 – $77,100 is taxed at 25%
$77,100 – $160,850 is taxed at 28%
$160,850 – $349,700 is taxed at 33%
over $349,700 is taxed at 35%
Single, Head of Household:
$zero – $11,200 is taxed at 10%
$11,200 – $42,650 is taxed at 15%
$42,650 – $110,100 is taxed at 25%
$110,100 – $178,350 is taxed at 28%
$178,350 – $349,700 is taxed at 33%
over $349,700 is taxed at 35%
Standard Deduction:
Standard Deduction is ONLY for those who do NOT itemize expenses like mortgage interest, charitable contributions, etc.
Married, Filing Jointly: $10,700
Married, Filing Separately: $ 5,350
Single: $ 5,350
Single, Head of Household: $ 7,850
Those who are blind or over age 65 can ADD $1,050 (if married) or $1,300 (if single or head of household) to the above Standard Deductions
Personal Exemptions:
Personal Exemptions are set at $3,400 per allowed person subject to Phaseouts (which are reductions in the Exemptions) based on taxable income. This is not an issue unless your taxable income is at least $117,300 (depending on filing status).
Maximum taxable EARNED income subject to FICA tax: $97,500
The Social Security and Medicare combined tax rate is 15.3% on income up to that figure. W-2 employees pay half of the 15.3% and employers pay the other half. Self-employed pay the whole amount.
Long-term Capital Gains and Qualified Dividend Rates:
For those in the 10% and 15% Income tax brackets only: 5%
For taxpayers in the higher tax backets: 15%
Capital gains on collectibles (coins, stamps, etc.) 28%
One of the important functions of a financial advisor is to help reduce taxes to your legal minimum due by using all appropriate deductions, methods and strategies. A good tax advisor is worth their weight in gold! So go find a pro-active tax advisor, not someone who just files tax returns.
And now, hopefully you will have a better idea of what that person is talking about.

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The St. Louis Cardinals® team logo can now be featured on the Major League Baseballâ?¢ Extra Basesâ?¢ Credit Card issued by Bank of America.    (www.cardinalscreditcard.com ).   This rewards credit card is scoring big with avid baseball fans and credit card consumers across the country.  Like many department stores, colleges and airlines have done for decades, Major League Baseballâ?¢ teams are now being displayed on consumer credit cards.  These sports oriented rewards credit cards — a great way for fans to express their undying team loyalty –  are proving to be a home run in the credit card industry.

Features offered by the Major League Baseballâ?¢ Extra Basesâ?¢ Credit Card from Bank of America include:

�           No annual fee.

�           0% introductory Annual Percentage Rate (APR) on balance transfers and cash advance checks for your first 12 billing cycles.

�           Earn 1 point for every net retail dollar spent redeemable for MLB� autographed memorabilia, once-in-a-lifetime MLB� experiences, cash rewards and travel with no blackout dates.

�           Get an official MLB� licensed jersey after your first qualifying transaction(s) using your MLB� Extra Bases� credit card.

During a period of economic instability, uncertainty in the stock market, illiquidity in the credit markets and the softening real estate market, one thing remains constant â?? sports fans are crazy about Major League Baseball.  Historically, baseball has given the public something to believe in and something to hope for, particularly during difficult economic times.   With the MLBâ?¢ Extra Basesâ?¢ credit card, Cardinals fans can be reminded of their favorite team every time they take out their wallets.  Real fans carry the card with pride.  Visit www.cardinalscreditcard.com to complete the credit card application online in a few short minutes.

http://www.articlesbase.com/baseball-articles/st-louis-cardinals-credit-card-major-league-baseball-extra-bases-mastercard-626558.html

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If you are looking for a Colorado mortgage rate quote for a Colorado mortgage loan, then there are many places to go. Of course there are many ads for different Colorado mortgage lenders that are based in the state and around the country. But for a better, more personal Colorado mortgage, it is best to go with an in-state Colorado mortgage lending professional. Read more...

Financial world is growing by leaps and bounds and every second person is talking about tax-planning, investment, share market, bank savings account solutions, insurance plans and so many other financial terms. This is because planning of finances is imperative and without it you can develop unfriendly financial implications for you. All you need is a plan or a budget for your whole life and a financial planning services firm can help in that. Read more...

Designed to promote financial responsibility and independence among pre-teen and teen club members, the Money Matters program helped the kids to build their money management skills.Over the course of five weeks, eight Boys and Girls Club members learned how to manage a checking account, budget, save and invest. They also learn about starting a small business and paying for college.

â??The Money Matters program goes beyond the basic elements of earning money and saving it. The kids learned about credit cards as well as about a variety of investment vehicles that would put their money to work and give them a good return. They also learned how to budget and better control their spending. When kids learn these lessons at a young age, they become financially successful adults,â? noted Joanna Degnan who is a CPA at Price Waterhouse Coopers and led the program.

â??I have learned so many things in this class.  I have even taught some to my family. The thing I enjoyed the most was learning about the credit cards,â? said 12-year old Marshfield resident Ben Quimby of the Money Matters program.

According to 10-year old Sydney Eastman, also a Marshfield resident, â??I enjoyed learning different ways to save money.  I just started earning an allowance and Miss Degnan gave us great ideas on how to save and spend our money the right way.â?

The kids utilized special program tools which included a Teen Personal Finance Guide containing practical tips and activities to help kids learn the important skills of balancing a checkbook, creating a budget and saving and investing for college and retirement. They also utilized the Money Matters website, an engaging online tool for building money management knowledge and skills through interactive activities, games and tools like a savings and financial aid calculator to plan for college.

Greg Langer, 12, of Marshfield said, â??I think the Money Matters Program will help me in the future to plan goals and spend my money more wisely.â?

The Money Matters program will be held again in May for club members who are age 15 and older. To learn more about the Money Matters program, contact Kathleen Newcomb at the Boys and Girls Club (781) 834-2582.

About the Boys and Girls Club

The Boys and Girls Club of Marshfieldâ??s purpose is to establish a safe haven for recreation, which includes a variety of supervised activities for greater than 4,000 youths (between the ages of 6 to 18 years old) within the town. The Boys and Girls Club of Marshfield has five Core Areas: Character and Leadership; Education and Career; Health, Sport Fitness Recreation and Life Skills; The Arts; and Technology. These Core Areas serve as the foundation for all programming.

As a privately-funded, non-profit organization, the Boys and Girls Club of Marshfield relies tremendously on the generous philanthropic support of individuals.  Financial gifts assist in providing the financial strength necessary to continue the clubâ??s mission â??to enable and inspire all young people to realize their full potential as productive and responsible citizens, as well as become tomorrowâ??s capable leaders.â?

For more information about the Boys and Girls Club of Marshfield, please contact (781) 834-CLUB (2582) or visit the website at www.MarshfieldBoysAndGirlsClub.com or write to the club at P.O. Box 311, Marshfield, MA 02050.

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