This article from Money magazine reveals that back in 1914, the first year of the From 1040, taxpayers were informed that 1913’s tax returns were due “in the hands of the Collector of Internal Revenue on or before March 1." Why? One common explanation is that March 1, 1914, was a year and some change after the institution of the 16th Amendment, which cemented Congress’s power to collect income tax upon its ratification in February 1913. But the 16th Amendment didn’t institute income tax itself — that was the job of the Revenue Act of 1913, which was signed into law in October of that year.

Tax Day was moved to March 15 in 1918. It remained that way until the 1950s, when the deadline was shifted again, this time to April 15. By 1954, many more people were filing taxes than they were 50 years prior.

Pretty interesting, right? Well if you think that tax tidbit was a bit fascinating, wait till you read this one. This article, also courtesy of Money magazine, titled, How a 27-Year-Old Math Whiz (and His Uber Driver) Found a Big Flaw in an IRS Tax Formula, states that Sam Ferguson spent one January Uber ride diving into tax math—and unearthed a big problem for many Obamacare customers.

Here is a short explanation from the in-depth Money article. "Ferguson, 27, a math Ph.D. student at New York University, was on a trip to Iowa when he got to talking with his Uber driver about their jobs. The driver told Ferguson that he had trouble calculating the premium assistance he was eligible for under the Affordable Care Act, also known as Obamacare. People without job-based coverage making up to $48,560 are eligible for government help paying their monthly health insurance bill.

Ferguson promised the Uber driver that he would research the issue. What he stumbled onto was a known, but only obliquely acknowledged, problem with the IRS subsidy-calculation methodology. It affects an estimated 100,000 households, or up to 500,000 Americans, according to Ferguson’s estimates, forcing them to pay more than they should for health insurance.

When Ferguson contacted the IRS, they admitted they were aware of the problem, although nothing had been done about it. Ferguson is now approaching academic journals to publish his findings. With the help of a former roommate who now works as an engineer at Google, he has also created a preliminary calculator that people can use to ballpark their premium subsidy, to help determine whether they’re in one of the problematic income bands—and he’s working on a free app that will go even further, telling people of any income what premium subsidy they’re eligible for."

Just goes to show that having a conversation with your Uber or other taxi drivers can often be illuminating, even life-changing, for either or both.

The Rules of Thumb blog from MoneyThumb stated in the title of this post that we had some free stuff we found that we wanted to share with our readers who are accountants. So without further ado, here they are:

FREE CPE CREDITS--AccountingCred.Org offers free, tech-focused continuing education (and up to 5 free CPE credits).

FREE WEBINAR ON AUDITING--5 Tips to Avoid Audit Documentation Deficiencies. Tuesday, May 8, 2018.  Join industry thought leaders Vincent Gaudiuso, Partner at Buchbinder Tunick & Co, and Brett Stone, Customer Experience Manager at Wolters Kluwer, for a frank discussion on proven tips designed to help you raise the level of quality your audits deliver. Documenting efficiently and effectively is critical, especially since “work not documented is work not done”. During this session you will learn:

• Top identified audit documentation deficiencies during peer review
• Tips your firm can easily implement for improved quality
• How technology like CCH ProSystem fx Knowledge Coach helps

Peer Review, audit standards and unforeseen litigation all demand good documentation. All CPA firms interested in improving the quality of their audits should attend this session.

The post Interesting Tidbits On Income Tax and Free Stuff for Accountants appeared first on MoneyThumb.

I don't like to make broad statements like that without proof to back it up. Although I know for a fact that it is true, your relationship and attitude toward money determine how it works for or against you, the moment I wrote the above paragraph I knew I needed some factual backup, so below I have listed opinions and facts from the money experts:

Financial guru Suze Orman sums it up best. “People really do not have a clue at all,” she says with deep conviction. “They think the reason they are miserable — that they are an emotional wreck — is because they have absolutely no money. They honestly think that if they had more money they would have fewer problems. The problem is that it’s not true! The reason they don’t have more money is because of how they feel about their life and who they are. Who you are determines what you have and get to keep. You define your money. You define the things around you. But money and the things around you can never truthfully define who you are.”

9 Facts About Money, Love and Happiness by PSYCHOLOGIA

Also, here is the link to a test courtesy of BBC that tells you what your relationship with money says about you.

All in all, yes, our attitude toward and relationship with money CAN and WILL determine what financial success, and to even stretch it a bit further, personal success, looks like in 2018.

The post Personal Finance: New Year, New Attitude Towards Money appeared first on MoneyThumb.

Today the Rules of Thumb blog from MoneyThumb is going to be brutally honest. When we talk about money, many of us cringe at the thought. Not because we don't have any, or that we have a lot, but because money and our relationship and that of our families with money is for the majority of people a private, personal matter, and nobody else's business. That is one freedom we have that belongs strictly to us. How we choose to spend and save, or not save, our money.

However, one of the joys of reading blogs and articles online is that it is also very personal and can be anonymous, and therefore we can be assured that the following information is yours to read, use, save, or even disregard., with no one the wiser.

So let's get to it. What is your true relationship with money? And if you find the relationship is unhealthy, how can you go about changing it? Hopefully the research we have put into this article and the advice we offer here will help you decide if your relationship with money is good or bad for your particular situation and you will come away with a new found respect for money and your power over it.

What is Your True Relationship With Money?

One thing we know for sure; what you put out into the universe is what you get back. There is no other way it can work, the universe is neutral, so if you decide you are poor and concentrate on lack, the universe, designed to give you what you desire with your thoughts, will deliver in kind.

Not to get all metaphysical, just stating fact. Whatever we think about money is what our reality will be. Many gurus have said it, and it is so true, "Change your perception and you change your reality." Your thoughts are your perception, and therefore your reality.

Let's also face another truth; We live in a world where presentation is everything. Nice car, nice home, nice clothes, money to burn, isn't that the totally American dream? How about starting with changing THAT mindset? We are never what we have, and if we think that is the answer we will always be sorely disappointed. Money DOES NOT buy happiness. Cliche? Maybe, but many cliches are true. There are many wealthy people who are miserable and very poor people who are filled with joy. You are probably thinking, whatever! So I will stop the philosophy lecture and go straight to the heart of the matter.

When I decided to write this blog post I did some Googling. First I typed in "why poor people stay poor," and then, "why rich people stay rich." Simple enough. The results of my research are as follows:

This article from Linda Tirado at Slate.com is right on target with what I have stated above. The article is an excerpt from Ms. Tirado's book, Hand to Mouth: Living in Bootstrap America. "It’s amazing what things that are absolute crises for me are simple annoyances for people with money." This one sentence really struck home with me. Growing up, we were poor, and I can remember my daddy saying,"Chicken today, feather tomorrow." What that meant for our family was, since there was never enough anyway, why not enjoy yourself a bit? Makes me think of poor people spending money they don't have on tons of lottery tickets. Sadly hoping they might for once get lucky. But they might as well wish to be struck by lighting. This mindset is self-defeating, of course, but I am sure there are many people living in a state of lack who feels this way.

If you find yourself living in a mindset of lack, please take a few minutes to read the above article in full. It really can change your life.

As far as the answer to my second inquiry on Google, "Why do rich people stay rich?" Kind of self-evident, isn't it? It has been said millions of times that it takes money to make money, and that is the formula used by the wealthy. I did find this particular article that I really like from WomenCEOProject.com. The author has worked extensively with self-made millionaires, so her advice is wealthy in experience. The article is titled, "23 Ways Rich People Stay Rich."

At the conclusion of the article, the author states, "Soooo after reading what the rich folks do, I’m sure you’re wondering about the rest of us blokes…what should we be working on to get to that level. Well, since I’m in the growing phase, I can tell you, that I have not gotten to that level, but I am definitely headed there, first, by claiming it, second by knowing that I deserve it, next, by learning where I make mistakes ( shopping ) and instead, making better decisions that will ultimately lead to my goals.

The fact is, we CAN change our mindset and relationship with money. Hopefully this article will help you reach beyond your comfort zone and attempt to change the reality of your situation, by changing your perception.

Have a great weekend!

The post Personal Finance: What is Your True Relationship With Money? appeared first on MoneyThumb.