Search results

Yep. I was off a year. Checks in 2008 based on 2007 return. Credit technically based on 2008 income as shown on return filed in 2009.

The "rebate" does not result from any change in tax rates or brackets. It is a tax credit. The credit is reduced by 5 cents for every dollar of AGI above $75,000 for a single return ($150,000 on a joint return). This is the same way some other credits, the Child Tax Credit for example, are...

You have to "account for" the rebate on your 2008 tax return only in the sense that you can't get both the rebate based on your 2007 return and a credit on your 2008 return. I posted some links to official sources on another thread...

Two chances to qualify for rebate Note that you have two chances to qualify for the rebate/credit. If you qualify based on your 2007 tax return, you get the "refund". If you do not qualify based on your 2007 return, but qualify based on your 2008 return, you get to take a credit against your...

I'm not sure that I follow your computations, Alan. Let's take an example: Starting value = S = $100 Ending value = E = $125 $10 was deposited half way through the period, F =10$ You, I and saluki9 all agree on the numerator, G = E - S - F = $15 Using your formula, the denominator would be...

We are on the same page here. If it is assumed that all deposits and withdrawals are made in one lump sum in the middle of the period then the formula I posted is numerically identical to the Modified Dietz Return formula you posted Clearly, the Modified Dietz Return is more accurate if this...

Here are some handy calculations and approximations that make sense to me. Maybe someone else will find them useful. Or maybe not. DW claims that I do everything backward.:confused: S = Starting portfolio value. E = Ending portfolio value F = net cash Flow = deposits - withdrawals F...

I wouldn't get too worked up over the details of this proposal just yet. It seems that the Senate was left out of the negotiations between the House and Bush. Senators hate to be ignored, and even a small number of senators can be very effective at blocking a bill. If a stimulus package...

Bloomberg column on this topic This commentary published today by Jonathan Weil, a Bloomberg News columnist, addresses the topic of this thread. Bloomberg.com: Opinion In my original post, I speculated about the possibility of closed loops, where a small group of institutions claim to insure...

I keep seeing stories like this from Bloomberg "Prices for credit-default swaps that pay investors if MBIA can't meet its debt obligations imply a 71 percent chance it will default in the next five years, according to a JPMorgan Chase & Co. valuation model. Contacts on Ambac imply 72 percent...

Kobydog, Yes, you can recharacterize your 2007 conversion from a TIRA to a Roth back to the Roth after January 1, 2008. (Thanks for the correction, EngineeringMyFinances). In fact, you have until October 15, 2008, the end of the automatic extension period for filing tax returns. You can file...

Wash sales and TIRA -> Roth conversions A couple of quick points about which there may be some confusion earlier in this thread. TIRA to Roth conversions must be made in the same calendar year the resulting taxable income is recognized. If you make a conversion between Jan. 1, 2007 and April...

Anyone contemplating this should be aware that it is likely to force computation of the Alternative Minimum Tax. Whether or not additional AMT is owed will depend on other factors. I definitely plan to take advantage of this window of opportunity as long as it is open. - 2008 through 2010 if...

Limpid Lizard - As you have discovered, there is no way that spending is going to be the same each month. I am also given to nervousness when "the budget" is exceeded. Here are a few ideas that have helped me be less nervous over the years since I retired: Keep an off-balance-sheet buffer...

From twaddle I should have made it clear that it is my investments, not my expenses, that I have been tracking in detail for 19 years. I agree with your earlier statement that lifestyle changes completely swamp inflation. I have a good idea what I spent each year, but that has only a voluntary...

I was hoping CFB would respond to this thread, as he has previously posted thoughtfully on the topic of personal vs. official inflation. I think I represent a third (maybe rare?) category. I don't have a huge portfolio but I see our spending rate as a variable largely under our control...

To clarify my question a bit: It is not so much the rate of inflation that I am concerned with, it is the difference between the CPI and personal inflation rate. If we assume that the past is a guide to the future (a much discussed topic), then Firecalc-like computations provide a reasonable...

Thanks for responding. twaddle: Clearly, larger portfolios support larger withdrawals no matter what is happening with inflation. I'm not so sure about choosing investments based on types of expenses. I eat a lot of yogurt, but I don't see that as a particular motivation to invest in yogurt...

The difference between the reported CPI and our personal cost of living has increased recently. For example, our rates for electricity, gas, and water/sewer utilities have had double digit increases each year for the last 3 years. Food prices are rising rapidly. Foreign travel costs have jumped...

I purchased a life membership to AAII about 1990. In 1997 AAII Journal was the first place to publish the Trinity Study. The Trinity Study was the first published report to describe the historical success rate of inflation adjusted portfolio withdrawals, examining various initial withdrawal...

I've been retired for eleven years. I voted "on target". I'm not sure this answers the OP's question precisely. Our budget was based on our expenses before retirement and our financial resources. We targeted a level of expenditure (with inflation increases) that gave us an acceptably high...

Two people. We both quit our jobs eleven years ago, but DW was offered a job-share situation and went back to work for three six-month stints ending in 2000. Our total yearly budget for 2007 is $43,644. We allocate $31,416 to ordinary ongoing expenses, $7207 to amortization of large infrequent...