Tips for the New Year

Lowering Your Taxes

The amount of income you report for tax purposes and the way you file your tax returns both have significant bearing on the amount of taxes you pay. For instance, a typical American family pays about one-third of its gross income in taxes: federal income and social security taxes, and numerous state and local taxes, sales taxes, and property taxes. The taxes you pay depend in part on your filing status, the category that identifies you based on your marital status and family situation. One way of reducing income taxes is to use a technique known as income shifting. Here the taxpayer shifts a portion of his/her income – and thus taxes – to relatives in lower brackets. This can be done by creating trusts or custodial accounts or by making outright gifts of income-producing property to family members. Another strategy is to use tax shelters. Tax shelters are forms of investments that take advantage of certain tax write-offs. Some real estate (income producing property) and natural resource investments provide these desirable deductions. In accounting terminology, these write-offs are called depreciation, amortization, or depletion. Still another strategy that is widely used is tax deferrals. Income that is tax-deferred does not cause taxes to be paid now, but delays their payment to a future date. A good example of tax-deferred income would be income earned in a traditional Individual Retirement Account (IRA). Basically, any wage earner can open an IRA and contribute up to $2,000.00 a year to the account.

Joseph Greene, Cree Walker Professor of Business Administration

1. Getting fit is a matter of Behavioral Change that will reinforce the results that are desired. For example: A change in a behavior may be to walk before work – or after work. This behavioral change would then become something that is a "habit" and will help toward the goal of fitness.

2. Brand new warm-up suits, jogging shoes, etc. look good; but, the activity still needs to be done.

3. Start slow and build into a pattern. It is very easy to get depressed soon into the program because of muscle soreness, lack of apparent results, etc.

4. Watch what you eat. One does not need to stop eating – just eat less of what they now eat.

5. Always check with your physician before beginning a program.

Richard Harrison, chair, Department of Kinesiology and Health Science