The best is yet to come

That's right. President Obama historically win the second term despite the national economical condition. People choose him to server another 4 year and give a chance to revive the economy. Many thinks that the policy that is changed during the president time will have immediate effect.  Unfortunately, during the last term, most of the policy was in effect that was passed during Bush era. Next four years will tell whether those program works or not. The unemployment which we saw near 4% during Clinton time will never come back unless major changes in the tax policy which move the job outside of US.

President said in his speech last night   "We want our children to live in an America that isn't burdened by debt, that isn't weakened by inequality, that isn't threatened by the destructive power of a warming planet. We want to pass on a country that's safe and respected and admired around the world, a nation that is defended by the strongest military on earth and the best troops this—this world has ever known. But also a country that moves with confidence beyond this time of war, to shape a peace that is built on the promise of freedom and dignity for every human being.   I believe we can keep the promise of our founders, the idea that if you're willing to work hard, it doesn't matter who you are or where you come from or what you look like or where you love. It doesn't matter whether you're black or white or Hispanic or Asian or Native American or young or old or rich or poor, able, disabled, gay or straight, you can make it here in America if you're willing to try."

This makes us so proud of the country and leadership. Let's see where we go from here.

President Award

One of the interesting event happen yesterday, my daughter get the award for Academic Excellence. It is interesting to note that the certificate is signed/rubber stamped by the President of United States, Barrack Obama, and Secretary of Education.

Why we are Shouting?

Why We Shout In Anger?

A Hindu saint who was visiting river Ganges to take bath found a group of family members on the banks, shouting in anger at each other. He turned to his disciples smiled and asked.

'Why do people shout in anger shout at each other?'...
Disciples thought for a while, one of them said, 'Because we lose our calm, we shout.'

'But, why should you shout when the other person is just next to you? You can as well tell him what you have to say in a soft manner.' asked the saint

Disciples gave some other answers but none satisfied the other disciples.
Finally the saint explained..
'When two people are angry at each other, their hearts distance a lot. To cover that distance they must shout to be able to hear each other. The angrier they are, the stronger they will have to shout to hear each other to cover that great distance.

What happens when two people fall in love? They don't shout at each other but talk softly, Because their hearts are very close. The distance between them is either nonexistent or very small...'

The saint continued, 'When they love each other even more, what happens? They do not speak, only whisper and they get even closer to each other in their love. Finally they even need not whisper, they only look at each other and that's all. That is how close two people are when they love each other.'
He looked at his disciples and said.

'So when you argue do not let your hearts get distant, Do not say words that distance each other more, Or else there will come a day when the distance is so great that you will not find the path to return.'

Organizing tax document to prepare the Tax Return

Tax Deductions and Credits Items

Above the line deductions:
 IRA contributions
 Health Savings Account contribution
 Self-employed retirement plan contributions
 Self-employed health insurance premium
 Educator’s expenses
 Student Loan Interest / tuition and fees
 Moving expenses

Below the line deductions:
 Medical expenses (subject to 7.5% of AGI)
 State income taxes / Sales tax / SDI
 Real Estate taxes / DMV License Fees
 Mortgage interest and points
 Donations to charities (cash and non-cash)
 Casualty and theft losses (subject to 10% of AGI)
 Tax preparation fees (subject to 2% AGI)
 Employee business expenses (subject to 2% of AGI)
 Job-hunting expenses (subject to 2% of AGI)
 Professional and union dues (subject to 2% of AGI)
 IRA fees / Safe deposit box fees (subject to 2% of AGI)
 Investment expenses (books, seminars, travel, meals, subject to 2% of AGI)

Credits:
 Education Tax Credits
 Child and Dependent Care Credit
 Foreign Tax Credit
 Residential Energy Credit
 Qualified Plug-in Electric and Electric Vehicle Credit
 AMT Tax Credit
 Adoption Credit
 Child Tax Credit
 Earned Income Credit
 Health Coverage Credit
 Mortgage Interest Credit

Income and other Items

Income Items:
 W-2’s – Wage and Tax Statements from your employers
 1099-INT /1099-DIV – Interest and dividend income and Capital Gain Distributions
 1099-MISC – Self-employment income and others
 1099-G - State tax refund and Unemployment Compensation
 1099-R – Pension and IRA Distributions
 1099-B – Proceeds from Sales of capital assets (stock and mutual funds)
 1099-S – Gross Proceeds from sales or exchange of Real Estate
 1099-C – Cancellation of Debt
 SSA-1099 - Social Security Benefit
 K-1’s – Income and Deductions from Partnerships and S-Corps
 Foreign earned income information
 Rental Income and Deductions
 Business Income and Deductions (Unincorporated business)
 Cost Basis information for stock and mutual funds sold during the year

Other Items:
 Prior year federal and state income tax returns
 Estimated tax payments for current year
 Current year tax extensions filed
 Correspondents from IRS or State, if any
 Foreign bank account info if combined balance over $10,000 during the year
 Escrow statements for refinance and purchase of real estate
 Escrow statements for sales of real estate (including your home), if any
 Purchase Contract for vehicles purchased during the year
 Interest and Dividend income for your children, if any
 Social Security Number for any new dependents
 Capital Loss and Passive Activity Loss Carry Over from prior year
 Net Operating Loss Carry Over from prior year
 Income estimates for next year