Nov 20

You’ve heard the news? Janeane Garofalo the comedienne, actress, and political activist was unwittingly married for the last 20 years to Robert Cohen. It seems they got married in Vegas, but didn’t realize it was a real wedding, they thought it was a joke. Now that Robert was planning to get married for real, he discovered the ‘error.’ I’m not going to judge, mistakes happen. But I wonder what the IRS will think. You see, the tax table for Married Filing Separately isn’t quite the same as the table for single.   This is the tax table for 2012:

You can see both the 33% and 35% rate start at far lower level for the Married Filing Separately as compared to the Single rate. She’s put out quite a few movies, and one site puts her net worth at $10M. So, even if she’s a great saver, let’s look at the tax issue on $1M of taxable income. The single would owe $326,761, and the married gal filing on her own, $334,570, a difference of $7,809. I ran the numbers as I was writing this article, and am surprised the difference isn’t much higher. I know congress has reduced the so-called marriage penalty over the years, and consider that a good thing. Not sure if the IRS will even bother going after Janeane, the statute of limitations is 7 years I believe, as this wasn’t fraud, but ignorance, nor was it unclaimed income. On the other hand even 7 years of this error can add up after interest and penalties, and the IRS may be looking for closer to $100K when it’s over. They jail Martha over less than this, but she lied.

I wish you well, Janeane, and offer this as a caution to my readers, if you go to Vegas, bring along a friend who will stay sober and keep you out of trouble.

written by Joe \\ tags: , ,

Jul 26

Quite a few great reads to share with you this week.

Let’s start with Jeff’s post at My Supercharged Life 25 Things Every Father Must Teach His Daughter About Life. I am a sucker for well created lists, and despite not being a financial one, this list will be added to my ongoing List of Lists, as it’s just that good. Jeff starts with “Family is forever. I want her to know that I will always love her mother. Her family will always be here as a complete unit for her to depend upon. I will model the loving marriage I want her to have.” With many people getting divorced I need to make sure my own daughter understands that her parents are in this for the long haul. Of course we may argue, as anyone might, but I’ve told her, “your mom and I have been arguing for 25 year this coming November, and we’re looking forward to 25 more.” Friends argue, as do we, but I never show her disrespect. Jeff’s list continues and it’s good reading for any Father, but especially one with daughters.

Financial Highway offers Frugal Summer BBQ: 7 Money Saving Tips for BBQ which I enjoyed. One tip that attracted some criticism was to have your guests bring the meat. I’m OK with that. If I am doing the cooking, I’ll be busy enough with sidedishes, drinks etc, and not having to foot the whole bill would be great. If I am the guest, I’m happy to bring the main dish but do none of the work. Sounds like a win-win to me.

Zac Bissonnette interviewed Dave Ramsey on WalletPop, and while I have my differences with Dave, overall, I think that people who follow him are better off that those who remain reckless. In this interview, Dave talks about how the recession might be this generation’s depression and how people under 40 haven’t seen a really bad down market. Maybe he forgot the tech bubble of 1999-2001? Either way, I like Zac’s questions and style.

Flexo at Consumerism Commentary asks “Is it Ever Okay to Steal Entertainment?” It’s an interesting spin, and a unique view.

I can’t ignore Nathan Barry’s 100 Things Your Kids May Never Know About. It came just a week after my book discussion of I Love It WhenYou Talk Retro, and given the blog’s title is Geek Dad, this list is a comprehensive list of the things our kids may never see. Betamax tapes, Floppy Discs, and even hard copy (paper) maps are just a few of the tech items that comprise this list. A fun read. How old you are will impact how many things you already don’t know about.

I hope you’re having a great weekend and enjoy these finds.

Joe

written by Joe \\ tags: , , , , ,