Obama vs. McCain on Financial Matters Part 1- Taxes

Topic Obama McCain Sources
Taxes Overview: Raise Taxes for the super rich. Lower taxes for everyone else. The less money you make the more your taxes are lowered. Overview: Lower taxes for everyone. The more the money you make, the more your taxes are lowered Source 1

After visiting both the candidates websites (McCain on Taxes, Obama on Taxes), I found a lot more details on the Obama website about taxes than I found on the McCain website. Obama also has a Detailed Tax Plan (pdf) posted, while no such beast was easily found on McCains website. There is even a nice little calculator that shows me that Obamas plan will cut my taxes by $1800 while McCains will cut them by $60. However it remains to be seen if any of this actually happens.

Even though it seems that Obama will cut taxes more than McCain in general, Obama’s taxes will add about a trillion (yes that’s correct) less to the deficit than McCain according to CNN

Taxes :(

I finally started doing my taxes. I’m using taxact again this year (because it is free) like I did last year but taxact won’t let me import last year’s data unless I pay for the Deluxe version. Anyway so I filled out my information again. It is a pain in the ass calculating the purchase price of stock I sold because I bought it at various times over the past few years and it was even more difficult with the India Fund because I bought and sold funds in ther rights and repurchase offers.

Last year I compared tax returns from TaxAct and TaxCut and found the return to be identical. This year Taxact has calculated that I owe 2000 to the taxman :(, hopefully Taxcut will calculate something nicer. This plus some other unforseen expenses and a stock market that seems to be going nowhere this year are probably going to make it difficult to meet my annual goal but I’ll keep it intact hoping that some of my web/consulting ventures will make up for things.

P.S. Keep a watch here for coupons for Taxcut and Turbotax. I’ll post them if and when I find any.

Virginia State Taxman and ITIN->SSN

I cannot use VA ifile this year because the online ifile will not let me enter the spouse SSN instead of the ITIN (even though the box is editable – clicking on Next gives an error saying – “The SSN you entered for your Spouse is Invalid”). So I called up Virginia Department of Taxation and they said I have to paper file this year.

But I did get my Federal done – yipee! but only 20$ refund 🙁 – unyipee

Got 1099s with both an SSN and ITIN? Heres what to do with Taxes..

If you got an SSN mid-year and still have 1099s for an ITIN, you need to send a letter to the IRS saying that you have an SSN now and you will use it to file your tax returns instead of your ITIN. This information is straight from talking to IRS customer service. I couldn’t find any information on this online, so I had to call and ask. I couldn’t get Scottrade to reissue the 1099s with the SSN instead.