Customer Reviews

The Ernst & Young Tax Guide 2006

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Masterfully written as always. Totally invaluable resource of information for the self Income Tax preparer, like myself. This publication has saved my husband and myself, thousands of dollars in preparation fees over the past 17 years. THANK YOU ERNST & YOUNG!!!

Linda
Long Beach, California

Ernst & Young is America's leading tax and accounting firm. This book provides everything you need before filing your Federal income tax return. While a person can get their return done quickly at the many tax return shops they will not get the knowledge found in a book like this. Financial actions often have tax effects, you should plan ahead. This book tells what you need to prepare your return (Chapter 45). Chapter 47 explains about an IRS tax audit. Chapter 48 has a list of changes for the 2006 tax year. [Why did the IRS allow you to optionally deduct sales taxes in 2005? They learned what effect this would have. Prior to the 1970s you could deduct both sales and income taxes.]

Chapter 12 covers retirement plans. [In 1917 when the Federal government took over the management of the railroads they started a retirement system for the workers. Later Social Security followed this example for a retirement system for all workers.] Chapter 11 covers retirement benefits. You must take the required minimum distribution (RMD) when you reach age 70 or pay a 50% excise tax on the money not distributed. Parts I and II apply to the average working person. Chapter 5 explains quarterly payments for your "Estimated Tax". [Your weekly or biweekly deduction for income taxes is deposited in a Federal Reserve bank. The Fed uses your money to earn interest for itself. The government pays the Fed to borrow its own money! If this money was passed directly to the government your taxes would be lower.]

Why is a tax return so complicated? Because you didn't take the time to study it. Tax returns allow the government to learn as much as possible about a person, and allows micro-managing the economy. Complications allow a market for businesses that profit from doing your returns. A higher standard deductible of $50,000 would simplify a return for most people. [This was the rule for the 1862, 1893, and 1913 income taxes.] The income tax was recommended by 18th century economists like J. B. Say and Adam Smith; and others. In simpler times property was taxed and certain purchases (excise taxes). It takes a lot of tax money to run a big government with an Army and Navy. Taxes are used for political purposes, to reward certain behavior and punish others. Early America taxed tobacco, whiskey, carriages, and imports. Subsidies are another way to promote certain actions and industries.

The easiest way to do this year's return is to compare it to last year's return (which you have). To learn more you have to read (and reread) a book like this. Or a competitive product.

Every three or four years I buy a new edition of this book and compare it to my finances and financial plans. With new tax regulations, new moves in the market and insurance, and with a new (maybe better?) financial picture, I always find helpful information.

The writing is very readable and there are plenty of graphics and expert `blurbs' to help explain the topics. One thing I like is that the book integrates your entire financial picture: as expected there are chapters on investing and planning, but there are also chapters on divorce, insurance, and even caring for parents. I like, too, that the concepts are explained well. In the section on having a will, for example, the authors explain in good detail their recommendations for what to include. There are also ample warnings against poor financial moves.

There are plenty of financial guides available but I always come back to this one as the most comprehensive, sensible, and best.

This is the fifth year I've purchased the Ernst & Young Tax Guide. It's a great reference for tax preparers and self-preparers as well. Easy to understand; Most common forms for easy reference.

It's been since 1996 since the last Ernst & Young tax book I purchased. The books format has changed little. Even with all the tax software out there, this is still a good source to find tax information.

I am surprised that this edition was allowed to be so widely distributed....many forms in the back were overprinted with the annotation "draft, do not use." This year's version lacked the usual crispness of prior years versions. If I had known how good TurboTax was this year I would never have purchased Ernst & Young guide!