Friday, April 25, 2008
Tax Free Tennessee
Today marks the start of Tennessee's own economic stimulus: a three day weekend eerily similar to Senator John McCain's proposed gas tax holiday for this summer.
As with the Republican nominees, there is a lot of sizzle and excitement in the news, but not very much substance. Nationally, Senator McCain's proposal broadly sweeps through federal coffers. For consumers, however, there is much more to be happy about.
Senator McCain's proposal won't even allow someone buying 15 gallons of gas to offset the retail price of a single gallon. Sure, saving $2 or $3 for a single fill-up is nice, but not enough to cause a shift in consumer spending.
The same holds true for Tennessee's annual tax free weekend. A second weekend was added this year, and if you're reading this before Monday, you're still in the window. Just remember to check out the
tax-free rules before you start hog-wild spending.
A school item, for example, that is $100 or less is tax-exempt this weekend,. but if the item is $101, you owe sales tax for the entire amount, not just the single dollar over $100. Likewise, a computer under $1500 (think online retailers don't love this?) is tax-exempt, but you had better be under $1500 when all the extras are added. And, like every local tax authority, the good folks in the Tennessee government are happy to remind their constituents that use tax, as always, applies.
Labels: economy, taxes, Tennessee
When Will I Get My Stimulus Check?
Consumers who qualify to receive economic stimulus rebates from the government were told today that the calendar had been moved up for the payments.
The Internal Revenue Service maintains a
terrific resource on all things stimulus payment.
The page includes all of the information consumers need to know about receiving cash from Uncle Sam soon. Highlights you want to know are the phase out amounts (well over $100K for most two income couples), direct deposit of the payment if you had a refund already and even a calendar for payments (some taxpayers receive money as early as next week).
Remember: don't bank on the whole amount. Get a copy of your federal return, and use the IRS calculator to determine how much of the $600 per adult and $300 per child under the age of 17 you will receive.
Labels: economy, IRS, taxes
Monday, April 21, 2008
Crocs Pose Escalator Hazard, Says Japanese Government
Those ubiquitous "Crocs" shoes ( and their many imitators are under fire again. Complaints to U.S. government regulators haven't apparently gone far enough for the government to take action. The Japanese government, however, has asked the company to redesign the children's shoes to protect their feet on escalator.Crocs, Inc. (NADAQ:CROX) exploded with what intiially seemed to be a fad, and is now a business approaching $1 billion in annual revenues. Millions of pairs of shoes have been sold in Japan, and the government said this weekend that dozens of children suffered foot injuries, even losing toes, while wearing the platstic shoes.Labels: children, Crocs, Japan, safety
Wednesday, April 16, 2008
Whole Body Imaging Use Grows At Airports
One year after testing
whole body imaging at New York's Staten Island Ferry and weeks after a pilot program in the busy Phoenix airport, the US Transportation Security Administration is ready to start getting a closer look at consumers traveling.
For consumers who have been "patted down" or "frisked" while traveling, the new machine may seem like an alternative to an undignified position some travelers undergo because of their undergarments, medical devices or similarly benign issues. We wholeheartedly endorse national security and understand the need for stringent measures, but more than one consumer has shared with us that being frisked in the middle of a crowded public facility is unpleasant at best and often embarrassing.
Hand-held metal detectors are often used in such cases, but a nervous twitch can cause the machine to come in contact with a traveler's 's body. And while many consumers seem resigned to shuck off their shoes and travel through the airport in stockinged or (heaven help us) bare feet, removing jackets, belts and other clothing is often time-consuming at best.
"I like belts with big buckles," one consumer recently told me. "I can't wear them to the airport though because I have to take off my coat, my shoes, my belt and put my computer in a tray. I used to be able to just undo the buckle and show them the back, but now I have to take it off, and it's not worth the hassle."
Whole body imaging is supposed to replace the need for a pat-down although other measures will still be in force. Many travel and privacy advocates say a whole body image invades a consumer's privacy, but federal officials counter with a statistic that 90% of travelers subjected to the process in Phoenix preferred it to a "pat down" or similar measures.
The TSA also says that they will not maintain or store records of any captured images, but that doesn't address the point that the consumer is, well, exposed, for a time to strangers.
The image on the left is representative of what the TSA says its officers will see. With paperless bordering passes and other biometrics processes quickly being tested throughout the nation, we want to believe that this image isn't stored, but we also wanted to believe that doctors wouldn't read a celebrity's medical file and IRS employees wouldn't snoop through the taxes of the rich and famous.
Without more explanation of what safeguards are in place to protect a consumer's privacy, whole body imaging is a promising idea we can't yet support. Once we learn that images will never be associated with personally identifyig information and that no mechanism exists to save the image, we would be more willing to endorse and embrace this idea.
There clearly isn't enough time for that public reassurance, however, because the government has announced that travelers moving through Los Angeles' LAX or New York's JFK airports will soon be subjected to whole body imaging or being frisked if they set off a detector.
Apparently willing to base taxpayer dollars and consumer acceptance on a limited one airport test, the TSA has also reportedly ordered 30 more machines for use in other airports this year.
Labels: airport, privacy, TSA
Monday, April 14, 2008
Malt-O-Meal Linked To Salmonella
The Food and Drug Administration (FDA) says that up to 23 people in 14 different states suffering from salmonella may have been exposed through Malt-O-Meal cereal.
The company recalled the products earlier this month, and federal officials are encouraging consumers to throw away certain packages of Malt-O-Meal's Puffed Rice and Puffed Wheat cereals.
Malt-O-Meal also produces cereal under supermarket and generic names, including Acme, America's Choice, Food Club, Giant, Hannaford, Jewel, Laura Lynn, Pathmark, Shaw's, ShopRite, Tops and Weis Quality.
Consumers can identify potentially affected food by codes used on the packaging. The cereals have "Best If Used By" dates from April 8, 2008 (coded as "APR0808") through March 18, 2009 (coded as "MAR1809").
Labels: food, Malt-O-Meal, recall, salmonella
Monday, April 07, 2008
Income Tax Countdown - 1 Week To Go, 12 Scams To Watch For
Consumers who gave the federal government an interest-free loan for up to a year during 2007-2008 have undoubtedly filed for and may have even received their refund check by now.
Two words: Stop that!
There is absolutely no need for any consumer to receive a substantial income tax refund. Please consult with a tax professional if you are one of those people who consistently receive a refund. Many consumers we have talked with tell us that they view these refunds as "savings" and "found money" that they get every spring for big bills.
Nonsense.
That money is yours, and you received no interest or other compensation. Even if you receive a $1,200 refund, that means that you could have brought home an extra $100 each month during 2007. If you're carrying credit card or other debt and also receiving a refund, you've lost twice -- the government took more of your money without paying interest, and you paid interest on money you had borrowed.
Find an accountant or tax advisor.
For those of you who are waiting to file during the last 200 hours of the regular season, the
Internal Revenue Service issued its "Dirty Dozen" list of scams targeting taxpayers. As befits any IRS document, there are too many words, so let's boil it down fast so you can get back to finding those receipts:
1.
Phishing - This is the scam where you get email that looks like it's from one organization, but it really isn't. The solution is simple, especially with financial and other personal email. Open your browser and type the organization's address in, along with any extensions you found in the email.
2.
Stimulus Payment Questions - You may have heard that you're due a check in May or June if you paid federal income tax in 2007. This so-called "stimulus" payment is automatic. You don't have to do anything, and you should run away from anyone who tells you they need information to process yours.
3.
Frivolous Arguments - Very simply, you have to pay federal income taxes. If you don't, your tax professional will explain why. Verify that person's explanation with the IRS.
4.
Fuel Tax Credit - Best left for professionals or the IRS Help Line. If you don't understand the intricacies, don't try at home with a calculator with keys sticky from Saturday morning pancake syrup.
5.
Hiding Money Offshore - If you're in that financial demographic and reading this blog, have we got a deal for you. Write us. We'll help you invest wisely.
6.
Avoiding Roth IRA Limits - Does the deal sound too good to be true? It probably is, especially if a financial consultant just told you that they can avoid the federal IRA limits.
7.
Sending A "Corrected" W2 or 1099 - Yes, you're going to get caught. No, the people who work at the IRS are not that dumb. If you have a W2 that claims $X and you try lowering your taxes by submitting a "corrected" form, you will indeed face a form of corrections.
8.
Abatement Requests - If you don't know, don't ask. If you're told you should, ask a second professional. (Are you sensing a theme?)
9.
Tax Preparer Scams - There are good and bad people in every professional. A nice office or brand name from a national chain is meaningless. Check with your local or state government agencies before entrusting your financial future to a stranger.
10.
Forming "Shell" Companies - Not the gas station, but a bogus corporate entity that lets you shift income around when it is really personally taxable. Yep, they know this one too.
11.
Misuse of Trusts - There is a very legitimate financial need to use trusts in estate and financial planning. Be sure your financial planner and tax advisor are on the same page and understand. Don't unintentionally make a mistake by trusting someone who didn't know the full picture.
12.
Charitable Donations - The IRS specifically singled out the notion of taxpayers disguising private school tuition payments as charitable donations. That's pretty slick and pretty stupid. Here is the deal on charity: read the rules. If you're not preparing your taxes, don't overstate the condition, original cost or value of items you've donated. Get a detailed receipt. Take pictures. Do what you need to do to prove your donation.
We're not tax or financial professionals. This is merely a synthesis of a news item the Internal Revenue Service shared with taxpayers. If you have questions or concerns, contact your local IRS office or talk with a tax professional.
Labels: IRS, scam, tax deadline, taxes
Sunday, April 06, 2008
[recall] Imaginarium Activity Center - Choking Hazard
See that picture? If your child has one of these colorful little gizmos, it's time to take the item away.
The toy is called the Imaginarium Actvity Center and was sold by Toys R Us from August of last year to February.
The US Consumer Product Safety Commission reports that it has received 12 reports of those cute little sliders coming off the Activity Center and creating a choking hazard for children. Given that the item sold for between $20 and $50, this isn't simply a dollar store tossaway item, but one that is worth pursuing.
First,
take the Activity Center from your child.
Once you've done that, you can return the item to your local Toys R Us store for a refund. If you still have the box, you can check to ensure your particular model is covered because the item numbers 69042 (multi-sided) and 69083 (jungle) are printed on the back of the box, near the bar code.
Consumers with questions can call Toys R Us toll-free at (800) 869-7787 between 9 a.m. and 9 p.m. ET Monday through Saturday and between 10 a.m. and 7 p.m. Sunday.
Labels: children, recall, safety, toys r us
Saturday, April 05, 2008
[travel] Third Airline Shuts This Week: Skybus Ceases Operating
Tiny Skybus Airlines, based in Ohio, ceased operations today, making the company the third U.S airline to stop flying this week.
ATA and Aloha, both companies that had struggled for years, stopped flying earlier this week. Vacationers with early summer travel plans by air will undoubtedly face more crowded planes as existing airlines fight growing economic issues by cutting flights.
In an announcement posted on the company's website, Skybus said that the company "...struggled to overcome the combination of rising jet fuel costs and a slowing economic environment. These two issues proved to be insurmountable for a new carrier."
Several airlines, notably US Airways and JetBlue, were reportedly offering standby or low cost alternatives for travelers who were stranded at their destination. This is a relatively common occurrence when airlines, even iconic names like PanAm and Eastern, have failed over the years. While consumers can never rely on such gestures, most carriers make the effort to help others.
Labels: airline, economy, Skybus, travel
