JoeTaxpayer

Gas prices are nearing record territory again, and I have to say, those $50 bills to fill the tank are pretty tough. We’re not at $4 just yet but getting close.

A few weeks back, a story made the news about a Pastor who received a bill at an Applebee’s that included an 18% tip as the Pastor was part of a group of 20 people. Keep in mind, unless you have been hiding under a rock for the last 50 years, it’s common to see menus state that for a party of usually 6 or more, the tip is automatically added to the bill.  Also note that the party of 20 asked for 20 separate bills, which I can only imagine is a waitress’s worst nightmare. The one customer of 20 refused the tip, crossed it off the receipt and wrote, “I give God 10%, why do you get 18?” The story takes an interesting turn after another waitress put the receipt on the internet.

It came to the Pastor’s attention, she complained to Applebee’s and the waitress that put the receipt out there was fired. The Pastor was quoted elsewhere as saying “The note was “a lapse in judgment that has been blown out of proportion,” adding that she left a smaller tip in cash on the table.
Smaller than the $6 that was on her bill? Hmmm.

That’s my (too) long introduction to today’s message. The IRS asked me to remind you that if your pay from your job includes tips, there are a few things you should be aware of:

• Tips are taxable. Individuals must pay federal income tax on any tips they receive. The value of non-cash tips, such as tickets, passes or other items of value are also subject to income tax.
• Include all tips on your return. You must include all tips that you receive during the year on your income tax return. This includes tips you received directly from customers, tips added to credit cards and your share of tips received under a tip-splitting agreement with other employees.
• Report tips to your employer. If you receive $20 or more in cash tips in any one month, you must report your tips for that month to your employer. Your employer is required to withhold federal income, Social Security and Medicare taxes on the reported tips.
• Keep a daily log of tips. You can use IRS Publication 1244, Employee’s Daily Record of Tips and Report to Employer, to record your tips.

It can’t be easy waiting tables, so if that’s your job right now, I hope these customers are few and far between. I promise you, I won’t be one of them, I go out to dinner to relax, not to give anyone grief.

Another week, and time for another roundup starting with Kevin Mercadante‘s 10 Ideas For a Home Business. For many, it’s just a small difference in income that’s needed to make ends meet. Frugal only goes so far, in the long run, it’s income and building wealth that matters. Continued education leading to a better job might be a longer term goal, but short term, getting some part time income working from home is a great start. Read Kevin’s list and see if one of these ideas appeals to you.

Ron at The Wisdom Journal recently wrote H&R Block vs TurboTax: Cat Fight. It’s interesting to see what two marketing firms can do when they go after each other. And Ron got it right, it’s now a regular cat fight. Check out how the sparks are flying. Meanwhile, I have articles published at both sites. And I’d like to remain neutral in this skirmish. Just like Hertz and Avis in car rentals, there’s room for more than one Tax Preparation Software or storefront tax service.

A couple weeks back I wrote an article on how to Bet on Apple at 9 to 2. Let me spell out how this works. It’s done with options, and involves buying a $500 call, while selling the $600 call on Apple, both expiring in Jan 2015. The cost to do this was $22 (as of today, it’s up to $25) and if Apple closes over $600 by Jan ’15, the spread is worth $100. Options trade on 100 shares of stock, so the smallest amount to enter this trade is now $2500 plus commission. Note – I don’t call this investing. It’s gambling, plain and simple. Will Apple rise 30% in just under 2 years? It might, or it might not. But I believe the odds are better than the 4 to 1 odds the house is offering me.

At Graduated Learning, Stephanie wrote And the Snow Kept On Falling, about the storm we enjoyed in the Northeast last weekend. What struck me was the picture she posted.

Her picture is on the right, and on the left is from my article about The Paradox of Choice. A startling contrast, and a testament to how people feel compelled to buy bread and milk before every storm. Keep in mind, we were plowed out after two days. Those who shop once a week could have skipped the special visit altogether.

At Len Penzo’s site, Jason Bushey will tell you the 3 Things You Should Never Pay For with a Credit Card (and One You Always Should.)  I have to admit, I was expecting to see hookers and drugs hit that list, but Jason’s mind was not in the gutter.

Interesting that the Mighty Bargain Hunter had an article this week on a new derivative - Binary options: Another fork in the Yellow Brick Road? An interesting article about a product I think I can live without.

Let’s wrap it up with Miranda Marquit’s 50/30/20 Budget. It got me thinking about how we have our budget divvied up at our house. Saving more, and spending on want quite a bit less than this budget suggests. Check out Miranda’s article and let her know how your budget compares.

Regarding the title – The Planet Earth avoided disaster as Asteroid 2012 DA14 missed destroying the world by 17,150 miles, damn close in astronomical terms. But Russia wasn’t so lucky, by coincidence a meteorite hit Russia ans injured over 1000 people, destroying a huge number of windows by its shock wave. My prayers are with these poor people who probably thought this was the apocalypse.

One political cartoonist finally acknowledged the end of an era, soon there will be no more Saturday mail delivery. I’m not sure when the jokes regarding mailmen and dogs started. but it’s good to know, it’s not just us humans that will feel a bit lonely on a Saturday.