Super Couponing Tips: Coupons can raise tricky tax questions

DEAR JILL: Two weeks ago, I found a skincare product worth about $40 on clearance for $13. To make the deal sweeter, I had a $3 off manufacturer Deal Today. Score, right? Well, yes and no. This was the only item I was purchasing, so my total with 7 percent sales tax should have been $10.70. However, my total was $10.91. I was a little irritated to find I'd been taxed on the pre-coupon total! While it was only 21 cents additional (and I got a smoking deal on the skincare) it made me wonder if this is happening all over the place and I just have not noticed it before. With all the coupons I use on a regular basis, it would really add up.

With regard to taxing on a pre-manufacturer-coupon total, could the government really be requiring stores to collect tax on something that isn't included in a purchase? Essentially, I paid tax on money I didn't even spend. Please share your thoughts on this, if possible. - Bonnie Z.

DEAR BONNIE: Figuring sales tax with coupon use is a tricky issue. In most states, sales tax is charged on your pre-coupon total, which is what happened to you. The state collects sales tax on the item's sale price. And, guess what - the state doesn't care whether you used a $1 bill or a $1 coupon to pay for your purchases. While we would look at an item and say "I only paid $2 for that," from the state's perspective, it's more like, "This item cost $3, regardless of how you paid for it." A manufacturer coupon is considered a form of payment or currency. The coupon doesn't reduce the selling price of the item - it's just a form of payment.

However, in five states (Connecticut, Massachusetts, Missouri, Pennsylvania and Texas,) things are a bit different. These states require the item's final purchase price to be taxed, not the pre-coupon price.

Some states do have exceptions to this - Illinois, where I'm from, is a pre-coupon tax state. However, our tax laws make a tax exception for free product coupons. When you use a coupon for an entirely free product, the law prevents stores from charging tax on something that the manufacturer intends to be free. (This does not apply to situations where a $1 coupon makes an item on sale for $1 free though, only to free-product coupons.)

Now, store coupons? They're a different story. If you're in one of the 45 pre-coupon-total states and use a store coupon, you may notice another interesting thing happen - in most cases, store coupons will reduce your item's selling price, and the post-store-coupon price is what you'll pay tax on. So, for example, let's say I buy a $5 item with a $2 store coupon. The store coupon functions differently than a manufacturer coupon, and it actually reduces the store's selling price of the item. The new "sale" price, post-store-coupon, is $3. So, $3 is the amount on which my sales tax is computed. The next time you shop with a store coupon, pay attention to the cash register as your coupons are scanned, and you just might see this in action. It will show up on your receipt, too.

If you're unhappy about being in a pre-coupon-price tax state, there's really not much you can do - aside from moving to another state, which is more than most people would do to save a few cents on sales tax here or there. But it is interesting to understand how it all works, isn't it?

Smart Living Tip: Some states don't charge sales tax at all - Alaska, Delaware, Montana, New Hampshire and Oregon. Others charge a reduced sales tax rate on food, or don't tax food purchases at all - certainly a benefit when you're trying to save with coupons.

Yahoo hacked; Lulu's deal; Google earnings rise; Amazon's miss; Nintendo health?; Cree's new board member; Verizon deal OK'd :: Editor's Blog at WRAL Tech Wire

Updated Jan. 31, 2014 at 7:48 a.m.

Yahoo hacked; Lulu's deal; Google earnings rise; Super Sale's miss; Nintendo health?; Cree's new board member; Verizon deal OK'd

Bulldog

The latest technology news in WRALTechWire's Bulldog Bulletin roundup:

NEW YORK - Usernames and passwords of some of Yahoo's email customers have been stolen and used to gather personal information about people those Yahoo mail users have recently corresponded with, the company said Thursday.

Yahoo didn't say how many accounts have been affected. Yahoo is the second-largest email service worldwide, after Google's Gmail, according to the research firm comScore. There are 273 million Yahoo mail accounts worldwide, including 81 million in the U.S.

It's the latest in a string of security breaches that have allowed hackers to nab personal information using software that analysts say is ever more sophisticated. Up to 70 million customers of Target stores had their personal information and credit and debit card numbers compromised late last year, and Neiman Marcus was the victim of a similar breach in December.

Self-publisher Lulu licenses children's bookmaking products

RALEIGH - Self-publishing company Lulu has entered into an exclusive licensing agreement with Easy Student Publishing that makes Lulu the worldwide source for the "Creations By You" brand of products.

Raleigh-based Lulu says the products enhance its breadth of self-publishing and image-rich product offerings while also extending Lulu's customer base through new retail distribution channels.
Creations By You products include bookmaking kits that give children everything they need to write and illustrate a one-of-a-kind story.

Earlier this month, Lulu announced the acquisition of Replay Photos, LLC, a provider of licensed sports and professional photography and wall art products. Lulu says the acquisitions and the Easy Student Publishing licensing agreement expand its ability to bring storytelling and expression to people of all ages.

SEATTLE - Amazon's profit and revenue both grew in the latest quarter but its results fell below what Wall Street was expecting and shares of the world's biggest online retailer declined after-hours.

Amazon has long focused on spending the money it makes to grow its business and expand into new areas, from movie streaming to e-readers and even grocery delivery.

Investors have largely forgiven thin profit margins and zeroed in on the company's solid revenue growth and long-term prospects. It's posted losses in two previous quarters due to rising operating costs but the stock hit an all-time high of $408.06 last week.

However, Thursday's disappointing results and modest revenue forecast for the current quarter sent shares tumbling up to 10 percent after the closing bell. In recent aftermarket trading, shares of the Seattle-based company were down $20.91, or 5.2 percent, to $382.10.

SAN FRANCISCO - Google's earnings are still rising at an impressive clip even as a long-running slump in its ad prices deepens and management gambles on risky ventures such as its unprofitable purchase of smartphone maker Motorola Mobility.

The latest evidence of the company's moneymaking prowess emerged Thursday with the release of results covering the holiday shopping season and the advertising blitz it produces. Investors evidently liked what they saw because they drove up Google's stock by 4 percent in extended trading to position the shares to reach a new peak Friday.

Although the company's earnings rose 17 percent during the fourth quarter, there were further signs of deterioration in Google's ad prices despite efforts to close the gap between rates for mobile devices and for traditional computers.

Google's average ad price during the fourth quarter fell 11 percent from the previous year. That was the steepest quarterly drop in 2013. It marked the ninth consecutive quarter that Google's average ad rate, also known as "cost per click," has fallen from the previous year.

Online advertisers haven't been willing to pay as much to reach prospective customers on the smaller screens of smartphones and tablets.

However, Google has been tweaking its digital marketing system so mobile and PC ad campaigns are bundled together. In doing so, Google Inc. is hoping advertisers eventually will recognize the advantages of reaching people on the go and gradually begin to pay higher prices for mobile marketing pitches.

Zynga cuts jobs, buys U.K. mobile games firm

SAN FRANCISCO - Zynga Inc., taking steps for regain its footing in casual video games, will cut 15 percent of its staff and spend $527 million to buy a popular mobile developer. The company also reported a narrower quarterly loss.

Zynga, known for its "FarmVille" and casino-style games, is firing about 314 people, mostly at its San Francisco headquarters, according to a statement Thursday. The company agreed to buy U.K.-based NaturalMotion Ltd. for $391 million in cash and 39.8 million shares of Zynga, valued at $136 million based on Wednesday's close.

CEO Don Mattrick, who left Microsoft Corp. to take over at Zynga in July, is retooling the company to focus on games for smartphones and tablets. The NaturalMotion acquisition adds two popular mobile titles, "CSR Racing" and "Clumsy Ninja" to the three segments Mattrick has targeted for growth: Zynga's "Ville" games, virtual gambling and puzzle games.

Nintendo hints at move into health care

TOKYO - Nintendo has been unable to arrest a slide in console sales as more people play games on smartphones and tablets. The company's apparent solution? A move into health care.

Nintendo president Satoru Iwata vowed Thursday to stick to the company's old ways, refused to resign or cut product prices despite its dismal earnings, but said the video game maker will enter the health care industry.

Iwata didn't give details of what he called his "quality of life" business plans, except that it won't be a wearable device.
Kyoto-based Nintendo already offers fitness games. Iwata promised to disclose details later this year.

DURHAHM -LED lighting company Cree has appointed John Replogle, president and CEO, Seventh Generation, to the Durham company's board of directors.

Replogle assumed his leadership role with Seventh Generation, a manufacturer and distributor of sustainable household products, in March 2011. Before joining Seventh Generation, he was President and Chief Executive Officer of Burt's Bees, Inc. from 2006 to 2011 and General Manager of Unilever's Skin Care division from 2003 to 2006.

"John will be a great addition to our board of directors," CREE Chairman and CEO Chuck Swoboda said in a statement. "He has a proven track record of successfully managing global companies and brands, and we welcome the opportunity to work with John as we carry out our mission to lead the LED lighting revolution."

Verizon gets OK for $130B Vodafone deal

NEW YORK - Verizon says its shareholders have approved its $130 billion deal to buy the 45 percent stake in its wireless division owned by British cellphone carrier Vodafone.

As part of the deal, Verizon will issue up to 1.28 billion shares of common stock to Vodafone shareholders. Vodafone Group PLC shareholders also approved the deal at a meeting this week.
New York-based Verizon Communications Inc. says buying Vodafone's stake will give it greater flexibility to invest in new technologies. Once the deal closes, it will no longer have to share its wireless operating profits with Vodafone.

The deal, which is expected to around Feb. 21, needs court approval in the United Kingdom among other customary closing conditions.

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Sky and ITV sign a deal for Sky Go and Now TV

COMMERCIAL TV BROADCASTER ITV has announced a four year partnership with pay TV giant British Sky Broadcasting.

At the heart of the agreement that was announced on Wednesday will be the new pay TV channel ITV Encore, which is set to be available across Sky properties including mobile service Sky Go and IPTV ancillary Now TV.

A range of archive shows is also included in the Promo Code, which will be added to Sky's on-demand service. Following the broadcasters' recent spat with mobile TV service TV Catchup that saw them forceably remove their channels, the Sky agreement will also see the ITV channels stream live on Sky Go, joining Channel Four, which had also objected to the TV Catchup service as part of the same legal battle.

ITV Encore will be the first new channel from ITV in eight years and will showcase "quality drama" from the network, with original programming arriving in 2015. This original programming will set ITV Encore ahead of the existing ITV3, which already shows reruns of classic drama series.

With advertising revenues falling in recent years as the number of channels increases, the move towards premium services to provide "quality" programming has gained momentum. The most obvious comparison would be to Sky's own Sky Atlantic, which shows a range of first run US dramas as well as original commissions such as the cult comedy This Is Jinsy. However, unlike their American counterparts HBO and Showtime, these channels do not require additional payment on top of the basic package.

This is not the first time that ITV has joined forces with Sky. In the 1990s the two shared a five channel bouquet known as "Granada Sky Broadcasting", while more recently they were arch-rivals with the failed Ondigital - later ITV Digital - terrestrial service that was forced into administration after a bidding war with Sky over football rights.

ITV boss Adam Crozier said, "The time is absolutely right to build on our successful partnership with Sky with the launch of ITV Encore, which will be an important part of ITV's family of channels, and will complement ITV3, home to our long-running, classic drama series. ITV Encore is right in line with our strategy of growing non advertising revenues while at the same time creating even greater opportunities to showcase new drama."

At present no launch date has been set for the new channel and streaming services, and there is no word as to whether ITV Encore will be a Sky exclusive, leaving cable customers out in the cold. µ

Hey - You People with Self-Control

Tell me NOT to buy the following:

Marble and Block Set (X2)

I might already have two, but the children and I MUST reach new levels of height and complexity. MUST.

TARDIS Bracelet Charm

The future in-laws got me a pandora bracelet for Christmas. It would only be good manners to use it. Thus, I need charms.

Portal Turrets

Look at that Bumblebee one! These come blind boxed, therefore, I must purchase 4 of them at the better to price to improve my chances. It's science.

Wonder Woman Underwear

Do... do I really need to justify this one?

So I should get them all, right? Despite the fact that it WILL cost 30 bucks in shipping plus duty costs at the border?

Apropos of nothing, ThinkGeek is having a buy-one-get-one 50% off sale.

ElectricCigaretteOffers Is Offering the Best V2 Cigs Coupon Codes for 2014

Deerfield Beach, FL -- ( SBWIRE) -- 01/17/2014 -- The new e smokers although are highly excited to use the flavorful electronic cigarettes but are unsure if they would want to spend a large amount of money on the expensive e cigarette brands. And at the same time the smokers are only willing to try the best quality brands of electronic cigarettes. So the ideal solution in a complicated situation like this one will to opt for the e cigarette deals and sales available on some of the top most electronic cigarette brands available in the market. And one of the current top most brands is V2 Cigs. Many review sites online have announced the Best V2 Cigs Best Deals for 2014.

Click Here To Know More About The Best E Cig Kits Online.

ElectricCigaretteOffers further explains about the concept of e cigarette deals and coupon codes. The coupon codes offered by the e cigarette brand are often the best way to buy the brand as the buyers can get a good discount either on the starter kit range of that particular brand or can even get a good off on all the e cigarette products manufactured by the same brand. And the current most popular deal available on the site ElectricCigaretteOffers is the Best V2 Cigs Coupon Codes for 2014.

The official spokesperson of the website added, "We at ElectricCigaretteOffers inform about how the new e cigarette smokers are hesitant to spend a large amount of money on the smoking alternative that is new to them. And for this we suggest them to buy the genuine deals available on our site on some of the top most brands of electronic cigarettes. We are currently the Best V2 Cigs Coupon Codes for 2014."

V2 Cigs is offering 15% off on the starter kit range.

Where to buy the Best V2 Cigs Coupon Codes for 2014? Read more about it on http://www.ElectricCigaretteOffers.com/.

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Discount retailer Dots to file for bankruptcy - WSJ

Limited-time or "flash" sales on popular websites such as Rue La La and Gilt have eaten into Dots's revenue, which has declined in recent periods, the Journal report said, citing the people.

The retailer, which caters to women aged between 25 and 35 years old and has more than 400 stores across 28 states, has enlisted restructuring advisers at PricewaterhouseCoopers and law firm Lowenstein Sandler LLP, according to the WSJ. ().

Glenwillow, Ohio-based Dots is also in talks with asset management firm Salus Capital Partners for debtor-in-possession financing, sources told the business daily. According to the report, Salus provided Dots with about $50 million in financing about six months ago.

Dots's bankruptcy filing would underscore the retail industry's breakneck move from offline to online, which has significantly hurt brick-and-mortar businesses.

Bronx, New York-based Loehmann's, the 92-year-old Amazon Sales clothing chain, filed for bankruptcy protection for a third time last December.

Dots, owned by Irving Place Capital, a middle-market private equity firm, was not immediately available for comment outside of regular U.S. business hours when reached by Reuters.

Space News from Weather.com

Tuesday's massive solar flare has forced the commercial spaceflight company Orbital Sciences to postpone the planned launch of a private cargo mission to the International Space Station today. Read the full story here: Huge Solar Flare Delays Private Rocket Launch to Space Station.

A massive solar flare erupted from the sun on Tuesday (Jan. 7), rising up from what appears to be one of the largest sunspot groups seen on the star's surface in a decade, NASA officials say.

NASA's Solar Dynamics Observatory captured a video of the huge solar flare as it developed, showing it as an intense burst of radiation from a colossal sunspot region known as AR1944. The sunspot group - which is currently in the middle of the sun as viewed from Earth - is "one of the largest sunspots seen in the last 10 years," NASA officials wrote in a statement. It is as wide as seven Earths, they added.

Tuesday's big flare was an X1.2-class solar event on the scale used to classify sun storms. It occurred at 1:32 p.m. EST (1832 GMT) and came just hours after an M7.2-class flare.

Space weather channel officials at the the Space Weather Prediction Center overseen by NOAA are expecting the flare to spark geomagnetic storms in Earth's magnetic field when a wave of super-hot solar plasma associated with the flare - known as a coronal mass ejection - reaches Earth in the next few days. [ Photos: The Biggest Solar Flares of 2014]

"This is the first significant flare of 2014, and follows on the heels of mid-level flare earlier in the day," NASA spokeswoman Karen Fox of the agency's Goddard Space Flight Center in Greenbelt, Md., wrote in a statement.

"Each flare was centered over a different area of a large sunspot group currently situated at the center of the sun, about half way through its 14-day journey across the front of the disk along with the rotation of the sun."

X-class solar flares are the most powerful solar storms on the sun. Mid-level storms are dubbed M-class events and can supercharge Earth's northern lights displays, with weaker C-class flares rounding out the top three.

When aimed directly at Earth, the strongest X-class solar flares can pose a risk to astronauts in orbit and interrupt communications and navigation satellite operations.

Tuesday's solar flare did force the commercial spaceflight company Orbital Sciences to delay the launch of its first Cygnus cargo mission to the International Space Station from NASA's Wallops Flight Facility on Wallops Island, Va.

NASA officials told SPACE.com today that the crew of the International Space Station will not have to take measures to shelter themselves from the solar flare's radiation effects.

There are currently six astronauts living on the station as part of the outpost's Expedition 38 crew. The team includes three Russian cosmonauts, two NASA astronauts and one Japanese astronaut.

The sun is currently in an active phase of its 11-year solar cycle. The current cycle, called Solar Cycle 24, began in 2008.

Editor's Note: This story was updated at 9:26 a.m. EST to include new details about the effects of the solar flare for astronauts on the International Space Station and its delay of an Orbital Sciences Cygnus cargo mission to the station from Wallops Island, Va.

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