47% of Americans Pay No Federal Income Tax

But rates will increase in the coming years

(NEWSER) - Griping about high taxes? Not so fast: Federal tax bills are at historic lows this year, and for the third consecutive year, families and businesses will pay less than they did under George W Bush. The government’s take—as a share of the national economy—is its lowest since 1950, the AP reports. And we have the weak economy and an increasing number of tax breaks to thank for the fact that income tax payments will be almost 13% lower than they were in 2008. More»

You may be able to deduct college courses, disaster losses

(NEWSER) - If you've put off your taxes until the last minute, here's a little reward for your procrastination: Time offers seven tax breaks that could save you money—now that you actually know about them:

• Higher education: There are certain credits available for qualified tuition, and you may not even need to be in a degree program to be eligible for them. Deductions are also available for college-related expenses like loan interest and room and board.
• Taking care of a sick parent: Though it may not be simple, it could be worth it to look into getting your parent declared as a dependent if you provide half or more of his or her financial support—even if the parent doesn't actually live with you.

105 busted in sweep

(NEWSER) - The Internal Revenue Service is cracking down on fraudsters as tax return seasons begins. The agency has stepped up efforts to prevent identity theft, and caught 260,000 bad returns last year, up from 50,000 in 2010, and prevented a total of $1.4 billion in bad refunds being sent out, Reuters reports. New screening measures have been put in place and hundreds of check-cashing operations are being audited. More»

Candidate's anti-government sentiment could have a long wick: Lemann

(NEWSER) - The popularity of Ron Paul's anti-government zeal should give Democrats and Republicans alike a reason to pause, Nicholas Lemann writes in the New Yorker . First, consider how radical a Paul presidency would be: IRS and income tax abolished; no foreign wars; no foreign aid; five federal departments gone ... and so on. Paul "speaks most directly to one of his party’s deepest emotions," writes Lemann. "Especially to the self-selected group that comes to the Iowa Republican caucuses, Paul’s positions are pulse quickening." More»

'Washington Post' fact checkers say Cain's plan is misleading

(NEWSER) - Herman Cain is being dishonest in touting his “9-9-9” plan, positioning it as some kind of tax cut, when “in reality tens of millions of lower income Americans would face tax increases,” Washington Post fact checker Glenn Kessler has concluded, giving Cain three out of four Pinocchios. The plan would replace the tax code with a 9% corporate tax, 9% income tax and 9% federal sales tax, which would amount to a big tax cut for the wealthy, who spend little of their income, but a big tax increase for most other families, since it eliminates the deductions they rely on. More»