|
Celebrating
our 25th Anniversary
States with no
income tax
As of this writing,
these states impose no income tax:
- Alaska,
- Florida,
- Nevada,
- New Hampshire*,
- South Dakota,
- Tennessee*,
- Texas,
- Washington, and
- Wyoming.
*These states do tax
unearned income, such as interest and dividends.
Demonstrating your
intent
To change your domicile
to a new state, here are just a few of the steps you can take:
- Spend at least 183
days out of the year in the new state and keep a log to show how
much time you spend in each state.
- File a
“declaration of domicile” in the new state.
- Buy a home in the
new state and, if possible, sell your home in the old state.
- Apply for a
property tax homestead exemption in the new state.
- Obtain a driver’s
license and register your car in the new state.
- Use your new
residence as your address in important documents, such as insurance
policies, passports, wills and trusts.
- If the old state
has an income tax, file a final tax return as a “part-year resident”
through the date you moved to the new state.
- Use your new
address on your federal income tax return and estimated tax payment
vouchers. Mail returns and payments to the IRS service center for
your new location.
Recent law enhances IRAs
When the Pension Protection Act of 2006 (PPA) became law on Aug. 17,
2006, it made permanent some provisions from the 2001 tax act affecting
IRAs that were to “sunset” after 2010. These include the higher annual
contribution limits and “catch-up” contributions for those age 50 and
older. PPA also allows you to direct the IRS to deposit your
income tax refunds directly into an IRA, effective for taxable years
beginning after Dec. 31, 2006. And, if you’re 70½ or older, the law
allows you to make tax-free distributions from your IRA (up to $100,000
annually) to your favorite charity. But act fast: This provision expires
at the end of 2007. |
|
|
|
Moving to another state?
Be sure to check out the tax climate
Most people decide where to live based on career, family and
lifestyle choices, not tax considerations. If you’re
thinking about a cross-country move, it pays to do some
research on your new home’s tax climate. The weather may be
balmy, but you may find the reception from taxing
authorities to be icy. Become familiar with your new state’s
tax structure so you can plan appropriately to minimize your
taxes.
Read more
Avoiding withdrawal pains
6 ways to tap IRA funds penalty-free
Withdrawing savings from your IRA before you retire should
be a last resort. You lose the benefit of continued
tax-deferred growth, and withdrawing funds before age 591⁄2
will result in income taxes and a 10% penalty.
Read more
Your IRAs
Taking out is just as important as putting in
Most people include IRAs as a key component of their
retirement planning strategies, whether they contribute to
the account annually or fund it with a 401(k) rollover. But
while you may view your IRA as a savings tool that you
automatically add to year after year, you may not realize
that the IRS has strict rules on when you can — and when you
must — pull money out of the account.
Read more
|
Get lean to increase competitiveness and profitability
After World War II, Toyota was a struggling manufacturer
trying to compete with GM, Ford and the world’s other
automotive powerhouses. Because it couldn’t go toe to
toe with its larger rivals and their heavily automated
assembly lines, Toyota developed a more flexible and
efficient system: It removed waste from every step in
its processes. This methodology came to be known as the
Toyota Production System, which was later dubbed “lean”
by Western experts.
Over the past decades, it’s been adopted by retailers,
many types of manufacturers, health care providers,
distributors and other types of businesses. Going lean
might be the way to a more productive, profitable future
for your business, too
Read more
|
Are you giving on blind faith?
Many charities vie for your donations, but few provide much detail on where your
contributions go. Do your dollars go directly to the program? Or are they
diverted to administrative and operational needs? The more you know about what
charities do with their funds, the better equipped you’ll be to make smart
giving decisions.
Read more
|
|
