For over a decade, parents in North Carolina have enjoyed the “tax-free weekend,” a three-day period at the beginning of August where they could purchase school supplies minus sales tax.  The weekend has not only meant savings for families, it has also meant an influx of shoppers into local stores.  Thanks to recent legislation, though, it is no more.  2013 marks North Carolina’s last sales tax-free weekend. Continue reading →

Today (April 8) marks exactly one week before your taxes need to be filed.  By now, if you haven’t already filed, you need to have correct documentation and the right forms to submit.  Did you know there are over 800 various forms and schedules for income tax reporting?  Filing your taxes can be tedious and confusing, so here is a checklist of important documents and forms you may come across during this time. Continue reading →

From August 3 to August 5, North Carolina had a “tax-free weekend.” During these days, people were able to purchase school supplies without paying the 4.75 to 7.75% sales tax. (While the minimum is 4.75%, most NC counties have a 6.75% sales tax.) Other sales tax-exempt items were clothing and footwear under $100, sports equipment under $50, computers under $3,500, and computer equipment retailing less than $250. One of my family members was able to save over 7 percent on an $800 computer he will be using for college, and millions of people across the state were able to save a little on their back-to-school purchases. I thought every state had a tax-free weekend at the beginning of August, but I was surprised to find only 20 states and DC have a tax holiday during the year, and not all of them deal with just school supplies. I was also surprised to find out the origin and politics involved in these holidays. Continue reading →

The story of the income tax begins in 1861, when the Union passed the Revenue Act to fund the Civil War. The legislation was renewed pretty much every year, until a subsequent piece of legislation in 1894, called the Wilson-Gorman Tariff Act, was deemed unconstitutional by the Supreme Court. Whether you feel the income tax is constitutional or not, the 16th Amendment was ratified in 1913, allowing Congress to levy income taxes. Today, Americans unofficially celebrate “Tax Day,” the day of the year where we are supposed to report our earnings to the Internal Revenue Service. (Unless, of course, we are approved for an extension, in which case we get an extra six months to report.) Tax Day is typically the first day of the year where people no longer have to dig through a giant pool of paperwork in order to calculate what exactly we made last year and what exactly we can count as a tax exemption. I’m writing this article on April 16, and you might be fretting because you thought the deadline to file your taxes has already passed. Don’t fear, however, because in 2012, you still have one more day! (Thank 16th US President Abraham Lincoln for this.) Continue reading →