Money Saving Tips

If you’re expecting a refund for your, then here are some quick simple tips to make your tax refund even bigger (Bear in mind that, you must itemize your taxes in order to be able to deduct charitable contributions):

#1. Deduct Job Search Expenses
Did you look for work during the past tax year? If so, you can deduct the expenses you incurred in your search for a new job on your 2009 Form 1040.
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Don’t we all wish we could keep a little bit of or pachecks as the tax deadline looms? While man states impose a certain amount of tax, the following states collect no income tax at all. But wait before you ruminate on whether to pack bag and baggage to move to any one of these consider these factors:

Texas

The (state) income tax-free Lone Star state is the second-most populated in the U.S., with 90% of its residents are under the age of 65. And while the state can boast two of Forbes’ top 10 job markets for 2010 (San Antonio and Austin), overall it has a relatively high 8.3% unemployment rate. In addition, it comes in at 34th overall for women’s earnings at just $586 per week. Those statistics could pose a problem, particularly because the state also has four of the 40 most costly cities in the U.S.: Austin (23rd), San Antonio (27th), Dallas (32nd) and Houston (39th). Even if you live outside those cities you’ll still have to pay a high 6.25% sales tax and if you smoke it’s going to cost you a steep $1.41 per pack cigarette tax.

Washington

With beautiful scenery, a young population (89% of the population is 65 and younger), and major employers like Amazon.com and Boeing the Evergreen State is an attractive place to live for more reasons than just a lack of state income tax. Forbes ranked it the seventh-best overall state to live in 2009 and it ranks ninth overall for women’s earnings (an average $709 per week). However, it also has a comparatively high sales tax (6.5%), a steep cigarette tax ($2 per pack), and a high 9.5% unemployment rate. In addition the state is facing a steep 26% projected state budget gap in 2010, which could impact services for residents.

Alaska

While Alaska is most commonly known for spectacular scenery and former Governor Sarah Palin, according to Forbes.com it is also the seventh-best state for women’s earnings, where women earn an average $719 per week. However, those benefits are somewhat offset by the fact that it also has one of the highest costs of living in the nation and still-climbing foreclosure rates. What may be more concerning is that more Alaska homeowners have gone into foreclosure as a result of job loss (due to a volatile economy) than because of the terms of a subprime loan. And, while residents do not pay a state income tax, the state is still going to take its share of your paycheck through sin taxes, including one of the highest cigarette tax rates ($2 per pack) and a sky-high $12.80 liquor tax (per gallon.) Plus, if you’re an extrovert Alaska’s probably not the best choice for you — it’s one of the least populated states in the U.S.

Florida

Florida has long been known as the snowbird state; retirees flock there for the warm climate and lack of a state income tax, making it the fourth most populated state in the nation (more than one-third of its population is 65 or older). It also has a high unemployment rate of 11.8% and eight of the top 20 metro foreclosure rates including Cape Coral-Fort Myers (11.87%), Orlando-Kissimmee (8.17%), Port St. Lucie (7.58%) and Miami-Ft. Lauderdale-Pompano Beach (7.16%). Lower property valuations are going to compound the state’s projected $3.2 billion spending gap this year, but the state will recoup some of its losses (at your expense) with its relatively high 6% sales tax, gas tax (.34 cents per gallon), and liquor tax ($6.50 per gallon.)

Nevada

Nevada was ground zero for the housing market collapse and it will likely take years for any significant recovery. Las Vegas had the nation’s highest metro foreclosure rate in 2009 with more than 12% of housing units in the foreclosure process — that’s more than fives times the national average. While the state boasts an attractive $55,570 (2006-2008) median income, that’s only helpful if you can find a job — the unemployment rate stands at a steep 13%, significantly higher than 8.4% just a year earlier. Residents also pay one of the highest sales taxes in the country (6.85%) as well as one of the highest gas taxes in the country (.33 cents per gallon).

South Dakota

South Dakota has a more lot going for it than just no state income tax. It has a low 4.7% unemployment rate, a decent average median income of $49,437 and a low 4% state budget gap in 2010 compared to other cash-strapped states this year. However, there are a few downsides to consider as well: it ranks 37th overall for women’s earnings, and it is the fourth-least populated state in the U.S.

Wyoming

The least-populated state in the U.S. was ranked by Forbes as the third-best place to live in the U.S. last year, landing in the top four for well-being, physical health, emotional health, life evaluation and work quality. It also has a relatively high average median income of $51,396 and a predominantly young population (87% of the state is age 64 or younger). However, unemployment has more than doubled since 2008 and major employers are scarce.

Conclusion

The grass can always seem greener on the state tax-free side of the fence, but if you dig a little deeper you might find that your own state suits you better — even if you do have to pay a little bit more come tax time.

When times of recession present themselves it is very important that regardless of your financial situation, and no matter how tight things may be, you should continue to save. This may sound ludicrous to many people who can’t even imagine saving money when expenses will already be tight; but here are 5 important reasons why you should save during these troubled times:
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