Now that we’ve improved the energy efficiency of our cars through Cash for Clunkers, President Obama has proposed helping us improve our homes through Cash for Caulkers.  The proposal would provide a tax credit of up to $12k per home for 50% of the cost of projects that improve the energy efficiency of existing homes.   Unfortunately, Congressional funding to enact this legislation seems to have stalled.

Improving the energy efficiency of a home is more complicated than buying a vehicle. Each home is different and requires a thorough energy audit to identify and prioritize problems to deliver the best bang for the buck. The first challenge, of course, is to find a reputable and unbiased company to help you. Ask a guy who specializes in window replacement and just guess what he’s going to recommend.

Speaking of windows, it turns out that it may not pay to replace old single-panes with new double panes. In many cases, heat is lost primarily through lack of insulation around the frame and poor weatherstripping. It may be more cost effective to do a window tune-up rather than a replacement.  Read the rest of this entry »

Tags: Cash for Caulkers, energy, energy audit, Massachusetts, tax credits for energy efficiency

Tomorrow evening is the semiannual town meeting where I live, North Reading, Massachusetts.  Everyone gathers in the high school auditorium to vote on matters of local governance.

In preparation for the budget discussions, I thought I’d take a look at the local property tax rates.  The Massachusetts Department of Revenue keeps an online historical record of the rates for every municipality in the state.  It took a little massaging in Excel, but here is a list of property tax rates from 2003-2009. Read the rest of this entry »

Tags: Andover, Massachusetts, Middleton, North Andover, North Reading, property tax, Reading

On July 24th the Federal minimum wage will increase from $6.55 to $7.25 per hour.  Adjusted for inflation, the minimum wage is lower now than when I was in high school.  I’ve worked minimum wage jobs at a fast-food joint, a pizza place, and as a cashier in a chain drug store, but only during high school and college.  I can’t imagine trying to support myself, let alone a family, on those wages.

The wage increase won’t affect Massachusetts residents, as our state has a minimum hourly wage of $8.00.

Everyone, even those making minimum wage, will be affected by the increase in Massachusetts sales tax from 5.00% to 6.25% as of August 1st.  Sales tax affects lower income folks disproportionately, as they spend a greater percentage of their income on necessities.  Food is exempt from the tax, but other essentials such as toothbrushes, laundry detergent, and car parts are not.  If we have to raise taxes on the general population, I’d rather see an increase in the income tax.  Of course I’m amazed that a (normally) progressive state such as Massachusetts has a flat income tax.  The guy making minimum wage is paying the same rate as the hedge fund billionaire.  Except, of course, the billionaire can afford lawyers to find tax loopholes.

I guess taxes really are just for the little people.

Tags: Massachusetts, minimum wage, news, sales tax

Doncha wish that when you finished the exhautive (exhausting?) TurboTax interview that you could just press that enticing “File Return” button, and all would be complete?

Yeah, me too.

Yet every time I think I’m finished, another issue pops up and nags at me to investigate. Read the rest of this entry »

Tags: capital losses carryover, gay taxes, Massachusetts, TurboTax

About a month ago, I posted on the tax deductability of the excise tax paid on cars in Massachusetts.  Over 50 folks have read this post.  Maybe everyone already knew about this deduction, but let’s say that it was new to half of them.  The average car is worth, perhaps, $10k, and at an excise tax of $25/$1k, that would be a $250 deduction.  Assume a 25% marginal tax rate, and that post might have saved the readers over $1500.

Hey, that’s some good!

Let me know if this was a new deduction for you.

Tags: car, excise tax, Massachusetts, tax deduction