What is the purpose of filling in a personal income tax return and what deductions are allowed? I need help with my Taxation Assignment and so far, I can't seem to find any answers on these following questions; - What is the purpose of filling in a personal income tax return? - What deductions are allowed in the personal tax return? And if you don't mind, can you help me with this question as well? - What is Tax Payable? Your help will be much appreciated. And can you please put in the sources of the answers? Please and thank you =)

Name two personal income tax deductions you may take on your annual tax return if your own your own home.?

What are the personal income tax deductions? My husband is on salary every 2 weeks, it didn't change at all, but now he has an extra $200 income tax deducted each cheque. This started in June 2008. He has been fighting with the company since saying he is making less now than before and they say that there are new tax laws in effect and that it is correct. I can't find any table anywhere does anyone know where to find one? Our accountant says $200 more is a huge amt. and must be wrong, but we need some proof....any help would be appreciated. We live in Alberta, and I am looking for personal income tax deductions.

Personal income tax return deductions? what is considered a Personal income tax return? interest income? gratuities? med. expenses? I'm confused! Thanks

Rental income expense or personal income deduction? Can I pick? We own a duplex in California. We live in one part and rent about 1/3 of the property as a separate apt. On our federal taxes return, we take 1/3 of our property taxes and mortgage interest as rental expenses, and the remaining 2/3 as Schedule A deductions off our regular income. It is my understanding that this is the ordinary way of assigning these expenses and deductions. With the expenses in Calif of mortgage interest and property taxes, we are showing a net loss on the rental income. However, as our adjusted gross income is over $150,000 we cannot take this passive loss against other non-passive income sources, so it is carried forward until we have a profit we can subtract it from. My question is: can I take the entire mortgage interest and prop tax payments as personal income deductions, rather than rental expenses? That way I will see some immediate reduction in my taxes, versus some future tax reduction for my rental profits. Is this “legal,” or even sensible?

Income Tax 1040 - Deductions? In personal income tax 1040 long form, if your total itemized deductions are more than your income, will you be refunded the total tax paid?

What are the tax benefits of owning your own home? What personal income tax deductions can you make on your yearly tax returns when you own your own Personal home?

What is the procedure to submit income tax? I am employed in an UGC recognized state govt aided college. This is the first time I am subjected to income tax deduction and I would like to get my doubts clarified regarding it. First, is it compulsory for the college authority to deduct the income tax considering all kinds of income (salary, fixed deposit, bank interest) or can I submit the income tax through my personal tax consultant? What if I make mistake in calculating my income tax (more or less than the actual amount)? Second, when is form no. 16 required in the process?

Personal Income Taxes - Turbo Tax or paper? I have always done and still do my income taxes by paper and mail them in. Everyone keeps telling me I should use something like Turbo Tax, etc. I tried one version of it and thought it took me over twice as long. Mine is not very complicated. Take standard deductions. Any real good reason why I should buy the CD version, etc vs. doing it the "old fashioned" way. Also, I'm so tired of having everything done for us so that we don't even have to think hard anymore. Like calculators rather than adding in our heads. I think doing my taxes actually helps my old gray cells work better. :-).

Are social security and medicare calculated after personal deductions etc, or only on gross income? Trying to figure out my estimated federal taxes but a program I am using calculates my SS and Medicare higher than I predicted. Should I not have applied my personal deductions before figuring out these numbers?

Do we have to pay two separate income taxes to both the Federal & Provincial in Canada or is it inclusive? The federal basic personal amount of earning before taxes for 2006 is 8839 and each of the provinces have there own amounts, usually slightly lower then this. What is the maximum we can earn living in the Province of Quebec ? Ontario for example is 8,377 for 2006 . Essentially, with no other factors, deductions, income, exemptions, you can earn this much income and not pay any FEDERAL tax in Canada, but what about Provincial tax, is that different ?

personal taxes and buisness? i currently am employed by a company that takes taxes out of my weekly paycheck. i also own a company that i do work for on weekends etc, it is a sole proprietorship. when i file my taxes and combine my personal income with the buisness income can i use the normal buisness deductions like a buisness would ( mileage, office supplies, interest, utilities ). can i also use my personal deduction as far as dependents. also, if i can show more buisness deductions than what the buisness makes does this excess amount subtract my personal income also. basically i want owe nothing if possible and get something if possible

Does anyone have personal income tax tables at their disposal? I need to find out an amount listed to correspond to $900K for any standard deduction, only to get an overall figure. Let's just say that I've run into a certain windfall of sorts.

On a Federal Income Tax return, how do I show income from personal property that I sold? The personal property were tools that were used in my business in which we totally shut down in the end of 2008. These tools were totally depreciated to zero. What forms do I need to use to show this income? Is it a schedule D and not the schedule C since the business is no longer in existence and the tools are now my personal property? I am a senior citizen and the income from the tools is small and not enough to cause me to have a tax liability above my standard deductions.

Invested Money in Small Business as Partner - Tax deductions possible? I invested 3K in start-up money with 2 other guys plus spent another 4K in misc. such as travel costs, supplies, etc. and we haven't taken a salary or any income and are actually barely breaking even. Can I get any tax benefits for my personal income tax by having invested in this business? Thanks. LLC is the entity. Will not be changing that. I also live 2 states away and will not be able to just go see a tax pro together with the 2 other partners. The solution will have to be individually solved for each of us. They both have multiple other businesses it is just not going to be us going to see the same personal accountant. Thanks. This is about my personal taxes, not the LLC which will be done by the company's CPA. I will get a K-1 at the end of that process? I also don't do my own taxes. I'm trying to figure out if a. I can take deductions and b. what I need to give to my accountant to get the deductions and c. what are the questions I should be asking my partners prior to doing my own personal taxes. So far it looks like I should be asking to see a Schedule K-1.

I am negative on income every year should I file not to lose deductions? I have so many tax deductions and no income, I am going in debt ,covering the property tax bills, medical bills etc., using personal loans to cover these expenses. Can I use these deductions sometime in the future years should my luck turn and how do I do this? I am unemployed and have two minor children but do not receive any aide since I have a property.

Why does uber-wealthy Japan have one of the smallest income tax rates in the developed world? "Japan has one of the smallest tax rates in the developed world. After deductions, the majority of workers are free from personal income taxes. Value-added tax rate is only 5%..." http://en.wikipedia.org/wiki/Economy_of_Japan

Tax question: Can personal biz expenses accumulate over years of no income,then all be deducted when there is? I earn an income from a regular full-time job, but very occasionally (every few years) I also earn additional income as a freelance writer. In the past, I have tax-deducted writing-related business expenses only within the tax years in which I earned writing income. During years where no writing income was generated, I kept records of all writing expenses but did not claim them as deductions. This year (2006), I again will be earning money from my writing, the first writing-related income since 2003. My question: can I deduct not only 2006 writing expenses, but also writing expenses incurred in 2005 and 2004? In other words, are such expenses accumulative, a kind of multi-year loss which can be retroactively deducted once income finally is generated?

What is the itemized deductions FROM AGI? Joe is self-employed and paid these amounts REAL ESTATE TAX ON RESIDENCE 3,900 STATE INCOME TAX 1,400 REAL ESTATE TAX ON LAND IN CANADA (AS INVEST) 900 STATE SALES TAX 1,950 STATE OCCUPATIONAL LICENSE FEE 250 PERSONAL PROP. TAX ON VALUE OF CAR 200

An individual’s total income, minus certain deductions and personal exemptions, is called? the? An individual’s total income, minus certain deductions and personal exemptions, is called the? excise tax. withholding. social insurance tax. taxable income. A system in which the government both supports and regulates private enterprise is a? monopoly. oligopoly. laissez-faire economy. mixed economy.

Personal Finance! 10 Questions!!PLEASE Help!!! 10 points and best answer!!!!? 1. Which of the following is not true concerning Income Tax Refunds? (1 point) It is advantageous to receive a large sum of money in the form of a refund so that you can use the money to pay down debt. You are essentially giving the government an interest–free loan. It means that you are having too much deducted from your paycheck. You haven't properly evaluated your personal tax circumstances. 2. When claiming dependents, they must meet the following criteria EXCEPT: (1 point) the dependent must be a relative. the dependent must reside with you. the dependent must be under nineteen years of age unless he or she is a full–time student. the dependent was unable to provide over half of his or her support for the year. 3. If you opt to put money in a medical flexible spending account rather than trying to amass enough medical expenses to itemize on your tax return, you are taking advantage of _____. (1 point) a credit withholding a deduction an exclusion 4. A form of taxation in which everyone pays an equal rate of taxes is called a _____. (1 point) progressive tax regressive tax flat tax net tax 5. A form of taxation in which the highest income earner pays the largest percentage of taxes is called a _____. (1 point) progressive tax regressive tax flat tax net tax 6. A form of taxation in which the lowest income earners pay the largest percentage of taxes is called a _____. (1 point) progressive tax regressive tax flat tax net tax 7. Which of the following is not considered part of your gross income? (1 point) Everything of value you received during the year Everything of value you received from April 15th to December 31st Bartered goods and services Money you win on a game show 8. Which of the following is not true about your adjusted gross income? (1 point) It is your income minus deductions It is your income plus your deductions It determines whether you are eligible for additional tax breaks It is your gross income minus deductions 9. Which of the following is true about "above–the–line" deductions? (1 point) They are tax breaks that you can claim without having to itemize They are listed just above the total taxable income on the 1040 tax form They reduce your tax bill rather than your taxable income You must itemize in order to take advantage of this deduction 10. A dollar–for–dollar reduction in your tax payment is called a _____. (1 point) deduction flat tax credit debit

Based on the following data, would Ann and Carl Wilton receive a refund on owe additional taxes? Adjusted gross income, $43,190 Child care tax credit, $80 Amount for personal exemptions, $7,950 Itemized deductions, $11,420 Federal income tax withheld, $6,784 Tax rate on taxable income, 15 percent

Tax deductions for using personal car for business? So I've asked similar questions before but my situation has changed since then. I am currently employed with the local paper one night a week collecting old papers and quarters from their racks. I drive my own car around for about 2 hours. The route itself is about 20 miles and obviously always the same. I was originally hired as an independent contractor, but now I am on the payroll so my income taxes will be handled normally. My question now is what kind of deductions can I claim for using my car in this manner? Can I claim gas and maint. expenses like oil changes? Or can I only claim miles? The employer will be paying me some weird rate of $.35 per mile instead of the IRS rate, so I wonder if that comes into play anywhere. What kinds of records do I need to keep? I was just going to do an excel spreadsheet for the miles, and keep all my gas receipts obviously. I'm also only keeping the receipts to the gas I buy before doing the route. Appreciate anyone's help. Thank you!

How do I reduce my income tax liability if I do not plan on getting married or having children? I. I plan on making $150,000+ a year at a big law firm once I leave law school in the spring of 2013. II. There is the standard deduction, personal exemption, charitable deduction, and earned income tax credit. What other deducts exist? III. If I have to pay more money to charities to prevent as much as legally possible from going to the government to fund wasteful spending and social or welfare programs that is fine by me. IX. Thank you.

Expenses eligible for income tax deduction - profolios building expense for job search and side business? I am a graphic designer. I have a full time job, work for an advertising company, from 9-5. I am seeking for a better job opportunity, also want to get side business for graphic design. I have started to build my portfolios for these purposes. I have bought a new PC, a new camera and a new desk in late 2007 to work on my portfolios in the evenings and weekends. My intentions are (1) Job search - present the portfolios to my potential new employer, (2) Side business - present the portfolios to my potential clients to work on side business. The protfolios building will be done soon in March/April 2008. I do not have any clients yet. Questions: A) Will the PC, Camera, new desk expenses be eligible for income tax deduction? I use the PC, for 20% personal usage, the 80% is devoted to the graphic design to build my portfolios. The camera is 100% dedicated to the graphic design. B) If I could deduct the expenses, what tax forms do I use, and do I need to separate between job search and business expenses? C) What about the home office expense, I also bought a new desk in my study in 2007. Can I deduct a portion of my rent, utility, phone, supplies, that are dedicated to my study room? Thank you very much for your help!

Liberals can you please explain to me how your taxes will not go be raised? this is what bush tax cuts that were started in 2001, when Obama reinstates them your taxes will go back up, so he was lying to you about the nobody under 200,000 getting a tax raise when they expire all tax rates will return to pre 2001 rates (that means we all will be paying more) Income tax EGTRRA generally reduced the rates of individual income taxes: a new 10% bracket was created for single filers with taxable income up to $6,000, joint filers up to $12,000, and heads of households up to $10,000. the 15% bracket's lower threshold was indexed to the new 10% bracket the 28% bracket would be lowered to 25% by 2006. the 31% bracket would be lowered to 28% by 2006 the 36% bracket would be lowered to 33% by 2006 the 39.6% bracket would be lowered to 35% by 2006 The EGTRRA in many cases lowered the taxes on married couples filing jointly by increasing the standard deduction for joint filers to between 174% and 200% of the deduction for single filers. Additionally, it changed the rate of tax on dividend income starting in 2003 to 5% for those in the 0% or 15% brackets, falling to 0% in 2008. It was lowered to 15% for all other brackets. Additionally, EGTRRA increased the per-child tax credit and the amount eligible for credit spent on dependent child care, phased out limits on itemized deductions and personal exemptions for higher income taxpayers, and increased the exemption for the Alternative Minimum Tax, and created a new depreciation deduction for qualified property owners. [edit] Capital gains tax The capital gains tax on qualified gains of property or stock held for five years was reduced from 10% to 8%. funny thing i noticed these or not just tax breaks for the rich? how can that be if you listen to liberals? the question should read: How will your taxes not be raised? charley, take the time and read, any one with a high school education should be able to

Can a business net loss be used as a deduction? I am going to owe the IRS around $350 this tax year. I have a business, which i couldnt attend to this year and it has $120 in losses and $0 in revenue. Making it a Net Loss of $120. Out of the $120, $100 was for the business licenses, $20 ebay fee's. My question is will i be able to claim this $120 as a deduction on my personal income tax, because i will be filing my business tax with my personal tax.

MATHS ? calculating overtime income tax. URGENT!!! help me guys :S? okay here is the question, i know the answer but i have no idea how i got it. June Rosewall earns an annual salary of $22750 as a clerk. She worked overtime and earned an extra $3470 for the year. If she is permitted $108 for deductions, calculate: a. her taxable income : b. her personal income tax : c. how much tax she pays on her overtime : d. how much she received for her overtime (after tax) : okay i know the answers for: a. $22112 b. $5377.87 c. ? d. ? help me!!! i know you might need the taxation table to do it but use your own and just tell me where you go it. preferrably in AUSRALIAN DOLLARS :) thanks boys and girls xxx

How do Traditional IRA deductions work. Can you deduct the full amount you contributed that tax year from your ...personal income tax? (Not a Roth IRA this question pertains to a traditional IRA)

IRS Question Standard deductions and personal exemptions? Hey I was wondering, if I dont work and I want to build up some credit, why dont I just declare about 16,000 dollars as income and with all the standard deductions and exemptions i wont have to pay a penny of tax. I am married and i am allowed about 10,700 of standard deduction and about 7000 of personal exemption. Any ideas????

Personal Finance Help Please!!!!!!!!!!!!!!!!!!? 1. Which of the following is not true concerning Income Tax Refunds? (1 point) It is advantageous to receive a large sum of money in the form of a refund so that you can use the money to pay down debt. You are essentially giving the government an interest–free loan. It means that you are having too much deducted from your paycheck. You haven't properly evaluated your personal tax circumstances. 2. When claiming dependents, they must meet the following criteria EXCEPT: (1 point) the dependent must be a relative. the dependent must reside with you for the entire year. the dependent must be under nineteen years of age unless he or she is a full–time student (under 24 years old). the dependent was unable to provide over half of his or her support for the year. 3. If you opt to put money in a medical flexible spending account rather than trying to amass enough medical expenses to itemize on your tax return, you are taking advantage of _____. (1 point) a credit withholding a deduction an exclusion 4. A form of taxation in which everyone pays an equal rate of taxes is called a _____. (1 point) progressive tax regressive tax flat tax net tax 5. A form of taxation in which the highest income earner pays the largest percentage of taxes is called a _____. (1 point) progressive tax regressive tax flat tax net tax 6. A form of taxation in which the lowest income earners pay the largest percentage of taxes is called a _____. (1 point) progressive tax regressive tax flat tax net tax 7. Which of the following is not considered part of your gross income? (1 point) Everything of value you received during the year Bartered goods and services Everything of value of that you received from April 15th to December 31st Money you win on a game show 8. Which of the following is not true about your adjusted gross income? (1 point) It is your income minus deductions It is your income plus your deductions It determines whether you are eligible for additional tax breaks It is your gross income minus deductions 9. Which of the following is true about standard deductions? (1 point) They are tax breaks that you can claim without having to itemize They are listed just above the total taxable income on the 1040 tax form They reduce your tax bill rather than your taxable income You must itemize in order to take advantage of this deduction 10. A dollar–for–dollar reduction in your tax payment is called a _____. (1 point) deduction flat tax credit debit

Sole Proprietorship and personal taxes? So, my standard deduction is higher than my itemized deductions. I have a sole proprietorship, however, and I HAVE to itemize because of it. My sole proprietorship is a very small internet business, it's not really income, it's a hobby, but was told to claim it to not get in trouble with the big boys. I was wondering if, when I do my taxes, I would be taxed on more of my income because my standard deduction is higher than my itemized?

If your expenses for a home-based business come to more than the income from that business, can they? offset your personal income? If not, does anyone know of legal ways to reduce that taxable income (other than the normal deductions everyone knows about?) How do some people with good incomes manage to pay zero taxes?

How does the charitable giving tax deduction work? This issue sometimes comes up about giving at church and deducting it from personal taxes but I don't understand the whole concept. Basically, the question is this. If a person gives their church (a qualified non-profit organization) a donation or offering, and the person reports the gift on their income taxes, does the IRS simply just not tax the amount that was given? In other words, does the gift increase the amount of non-taxable income? Then, secondly, what kind of supporting documentation would the IRS require to substantiate the claim. Churches don't normally give receipts for offerings taken during service. Please state your qualifications if you have an informed answer. Thanks.

tax deductions for non-residents? I am a non-resident who worked in the USA for three consecutive years for 4 months. After filing for a tax return after my last year (2006) I found out that my tax preparer has filed for $0 taxable income ($6100 gross income) and therefore I got 100% of the taxes paid as a refund. I know that non-residents are not entitled to all of the tax exemptions and deductions as US citizens and residents are and were very surprised. I thought that my tax preparer could be incorrectly filed for me as a resident, until I found out that: The Green Card Test - You are considered a U.S. resident for tax purposes beginning on the day you are issued an alien registration card by the Immigration and Naturalization Service (INS). Use Form 1040: U.S. Individual Income Tax Return to prepare and file your taxes. The Substantial Presence Test - You are considered a U.S. resident for tax purposes if you were physically present in the U.S. for at least: 31 days of the current year, and 183 days of the three-year period that includes the current year and the two years immediately preceding, including: - all of the days you were present in the current year (2006) - 1/3 of the days you were present in the first preceding year (2005) - 1/6 of the days you were present in the second preceding year (2004) Does this mean that every non-resident, who has stayed for more than 31 days in the USA during any calendar year, could be considered as a resident for tax purposes and therefore could take advantage of all exemptions and deductions, which residents and citizens are entitled to? Are non-residents generally entitled to itemized standard deductions and personal exemption deductions?

Can owning 1 or 2 rental property qualify you as a real estate professional.? I am planning to buy 2 rental properties, approximately $250,000 total. My wife and I both work full-time. Does owning 2 rental properties qualify either one of us as a real estate professional so that we could get losses on these properties as tax deductions against our personal income.? If not, what can we do about these rental losses (mainly due to depreciation on the property). Thanks in advance.

Are Canadian PR considered resident if they do not reside in Canada? Me and my family will be do our landing in Canada to strart or PR. However, we do not plan to reside in Canada anytime soon. This is because my husband is currently working in Singapore (low tax regime country). Furthermore, we do not have any property nor family member there. We are unlikely to more there within the next 3 years. However, I was given to understand that once we do our landing, my husband would have to pay Canadian Income Tax on his foreign earned (Singapore) income although we do not reside there or will be there less than a week. Can someone tell me how this works. Furthermore, is there 2 level of personal income tax there like in the States, provincial and Federal? We have 2 kids; 5 & 9 yrs old. What is the tax rate like. Is there any personal deduction, spouse and child allowance like in Singapore? I am very concern because the tax rate in Canada is very high and since we are not benefiting from living there, we would have to pay our hard earn money to government.

Are excise taxes deductable for individual filers? Considering that 15% of the cost of gas is taxes (oil companys get < 4%), can I reduce my federal income taxes with any deductions even though I only use my vehicle for personal purposes? I mean, I'm being taxed on income net that I spend on an item that already has a 15% tax built in. That's a tax burden on top of a tax burden. What about the beer tax? The phone tax? etc. etc....

What is federal taxable income? My standard deduction is $5350 and personal exemption is $3400. The way it was explained to me, if I add these together, it is the amount of money out of what I make during the year that is not subject to federal income tax. If I make a few hundred dollars over this amount as gross income during the year (summer job), is all of my gross income that is subject to federal income tax or is it GROSSINCOME-(standard deduction+personal exemption) that is able to be taxed by federal income tax? thank you all

Corrected Question about taxes? Yesterday I asked - I started a corporation this year and was unable to really pay myself. If I have no income can I expect to get anything back if I have appox. 30K in deductions. I am talking about personal taxes not corporate. Can I expect to get anything back on my personal taxes. Regardless of my income I still had the same expenses with help from family and I still have the same deductions.

Based on the following data, would Ann and Carl receive a refund or owe additional taxes? Adjusted Gross Income: 46,186 Itemized Deductions: 11,420 Child Care tax credit: 80 Federal income tax withheld: 4784 Amount for personal exemptions: 6,800 Average tax rate on taxable income: 15%

Can I deduct the cost of vitamins, nutrition supplements, and alternative therapies from my Income Tax if...? ...I am a professional speaker on the topic? I advocate the use of these lifestyles, therapies, and products for health, wellness, and slowing the aging process. I definitely practice what I preach. I use/do everything I recommend in my speeches. I am in my mid-50s and look (and act) much younger. I know that I am a walking promotion for my speaking business and that my appearance and behavior validates my expertise/opinions in the audience's eyes. Therefore, I have to believe that my personal use of vitamins, supplements, and other alternative therapies should fall under the category of a business expense and be tax deductible. I am told by colleagues that this is "probably" true, but no one can give me any hard data to back up that claim. If you agree (or disagree), can you give me the references I would need and could use if the tax deductions are ever challenged by the IRS. Thank you for you help.

Question about tax deductions? Hi. This is a pretty basic question, sorry. But I'm 18 and it's the first time I've had to worry about tax returns/extensions. I am not claimed as a dependent by anyone. I know that a deduction doesn't function the same way as a credit. But does a deduction reduce the amount of my income that is taxable, or is it only used to determine which tax bracket you fall into? I am a full time college student, and I received $5000 in 2006 from a small trust fund. Given that the standard deduction is $5150, and the personal exemption is like $3300, I owe nothing, right? Is this true for the California state taxes also? Also, if I don't owe, then I don't need to file, do I? I assume I'm not getting a refund if I never actually paid anything. Could someone let me know if I'm right about all this? I thought I didn't need to file, but then someone told me otherwise, so I'm kind of panicking. I need to do an extension really quick if I was wrong. Thanks!

Indian tax question (housing loan,personal loan)? if i purchase a house out of personal loan , do i still get deductions under income tax? thanks a lot. pl cite your sources Mumbai, india

What tax form should I use? The payroll service I hired closed on Nov. 2008. I am going to pay my employees for the month of December 2008 without any deductions (Fed, State, SS, Med, SDI). What tax form should I use to give to my employees so they can declare this December income when they file for their personal income tax? Note: The payroll service already provided me the W-2's which covered only up to the month of November 2008.

Online Business Taxes? I have a small business that sells products across the US. This business was just started in May of 08 and has not had too many sales. In fact there is less than $100 in profit. It is based out of Florida. I am wondering if there is a certain amount of money that a business has to make before taxes are required to be filed. Also wondering what forms should be filled out. I have also read that if you own an LLC, you would file the taxes with your personal taxes. Is this correct? If so can I use my deductions for my business to offset my personal income? Any help would be appreciated. Does that mean that every one of my customers needs to issue me a 1099? All of the business income is from credit card sales. I have kept a thorough record of all expenses. Since the company is an LLC, do I have to file with my personal or is it just an option?

Can I deduct mileage from a general partnership in my personal taxes? I'm a partner in a general partnership. It looks like I can only claim my mileage and vehicle use in a Schedule C as a business owner. But I have a K-1 so that puts me in the partnership/S-corp category. Or do I have to enter that mileage as an itemized job expense, which will still put me below the standard deduction? Or am I supposed to claim it elsewhere? Since I'm claiming self-employment income it seems like I should be able to use the Schedule C. Thanks!

How can I increase my federal tax refund?? Here is my setup: Married, filing jointly. Here is my summary on turbotax. Taxable Income: Adjusted Gross Income $64,671 Less: Itemized Deductions $15,416 Less: Personal Exemptions $6,600 ____________ Taxable Income $42,655 Taxes and Credits Income Tax $5,634 Other Taxes $20 Less: Tax Credits $15 ____________ Net Tax $5,639 Payments Federal Tax Withholding $5,736 Estimated Payments $0 Telephone Tax Refund $40 ____________ Total Payments $5,776 Why on earth is my refund only 140 bucks?? Should I claim 0/0 or 0/1???

Advice On Buying VS. Renting with financial factors? I am a 19 y/o male. I am also a small-medium size business owner. I was renting an apartment with a friend for a year and was an easy $250/month rent. At the end of the lease, I moved back home with my parents until I am able to differentiate between the pro's and con's of renting and buying. My personal budget has mostly fixed expenses and slightly variable expenses, this includes putting $435/month into savings. I am differentiating between a 1,000 sq ft newer apt which also has a pool and gym at the clubhouse ($50/mo savings) and a 1,000 sq. ft home which may need a few updating repairs. The financial advise I need.... if I rent, after savings and expenses each month I will have about $450 left over in checking... If I buy first, I will have about $100 left over each month in the checking. These are mostly worst case scenarios with expenses estimated higher. I am considering renting for a year or two so I don't have the financial stress of "what if" so much and to gain a cushion in my checking account, and to feel a bit more security and not living paycheck to paycheck. Another factor, if I buy ($120,000 house on an acre) I plan to stay there about 3 years and move up to about a $150k-$165k house as my salary increases, so there are closing costs to factor in for only 2-3 years. My con of renting is, can't make changes, can't add a garage and rent it out to my business (tax deduction, greater personal income, and all business equipment is easily accessible, and kept out of weather) I am looking for investor and "playing it smart" advice..... THANKS My minimum gross is $3,000 a month, then possible bonuses at quarter/end of the year. I included $350/month in my expenses for child support. 50/50 chance, crappy situation. Again planning for worst case scenarios Expense Budget - - Monthly, High estimates $200 grocery $85 Electricity $40 Water $175 Clothes, Hygiene, Entertainment $435 Savings $350 Possible child support $100 Vacationing I have no personal debt, as a business owner, all business activity falls back on my SSN which is both bad and good. I have $40k on bus. debt showing on my credit with a $65k credit limit. I have been prequalified for $132,000 with a equal or greater co-signer note: when I mentioned differentiating between renting and buying I meant I am ready to have my own place 100% whether apt or house. Thanks for all advice so far, seems very helpful I monitor my credit regularly. It is currently at 791.

Free Online Tax Software? I'm a Canadian living in BC and preparing the personal income tax form. I heard there is an online government tax software which is free, and can calculate the tax deductions and credits from previous years automatically. Does anyone have any idea about the software or can give me the website link?

Must file if your income is more than the sum of your standard deduction + personal exemption.? I am asking this tax question about the state of Texas, in the USA. I am looking for someone to help me answer this question for my own self, I did not file my taxes for the year of 2006, cause the amount of money was under $1000. and the College online financial advisor told me that it was not necessary for such a small amount for the to file. Unless I wanted the money to come back to me and go throught the hassel of filing. Can someone help answer this for me? I would appreciate some information that I could either help me to links to find the answer, or someone can just tell me the answer. Thank you for your help. Stephanie Shahid

Basically here is the short list of my tax problems.? I need to file the paper work for an LLC/sole proprietorship. I need to file the paper work to declare the money I made ($9525) and I have about 2200 in deductions. I also need to figure out something on my personal taxes: I also have a letter from the IRS about a W2- I got on April 15th after I sent im my efile already. I never filed an amended return so they are counting the $158.xx of federal taxes not paid as income for this year. Those are the issues I got. I know that my revenue is for now pretty low so I don't have to worry about an instant IRS audit, but I don't want to ever get one so I want to have someone file this right the first time, and I'm pretty sure that I'm not that person. Basically, the issue is whether I should file this as personal income, or file as a business. Either way I file I dont know the forms to fill out and if I did them myself the danger is that I dont know enough to catch my own errors. Which is why I need someone to do em for me.

Sales tax on car, itemized deduction? When a married couple lives in a state with no income taxes, they are allowed to deduct sales tax. If the couple paid $1560 in sales tax on a $26000 car and another car had state sales tax of $1800. Are the state sales taxes deductible on Schedule A? If yes, all of them, and do you list it under personal property taxes or under other taxes and write in state sales tax? Thanks, Tim

Do you think Hillary might just be embarassed by something on her tax returns? I mean, based on past history. Bill Clinton did not earn only $35,000 as Governor. His expenses were often paid out of various state funds, including a $51,000 "food allowance" and a $19,000 "public relations" fund, never claimed as income. Hillary Clinton's aggressive tax deductions, included $1,000 to more than $2,300 a year for used clothing donations. Hillary annually gave bags of used clothes to Goodwill and the Salvation Army. Taking time from her arduous schedule, she personally catalogued each piece and its value, such as $10 each pair for Bill's old running shoes, $3 for Bill's used undershirts and $1 a pair for Bill and Chelsea's underwear. Despite Bill Clinton's siding with "those who work hard and play by the rules," While the President threw nominees overboard for not paying taxes on nannies, the Clintons never paid taxes in 1980 on their state-funded nanny, Dessie Sanders. In 1981 and 1982, when Clinton was out of office, they claimed a child care exemption for Sanders' services, but still didn't pay any Social Security taxes for her. A 1981 audit showed that Chelsea's nanny, Dessie Sanders, was employed at the governors' mansion from the time of Chelsea's birth to the time Clinton left office. The State of Arkansas does not pay for nannies, so Governor Clinton had Dessie Sanders listed on the payroll as a security guard. Helen Dickey (also known as 'a white house aide', a title that put her on the government payroll) was one of Chelsea's nannies in the white house but Becky Brown and Dessie Sanders raised Chelsea for the biggest part of her life. Becky Brown was on the payroll as an 'assistant administrator' in the governor's mansion. In reality, she was Chelsea Clinton's nanny, but the formal title meant that her salary could be paid by the state, thus landing the taxpayers of Arkansas with the financial liability for bringing up Chelsea. The Clintons even managed to claim tax relief for the statefunded nanny. The Clintons also have a history of what they call "oversights" when it comes to their taxes. One example: In 1994 The Clintons paid the Internal Revenue Service and the Arkansas state government $14,615 in back taxes and interest, after failing to report profits from a commodities-trading venture to the IRS. They said it was simply a mistake, an "oversight". How greedy and trashy can a person get? If you want links, there are 13,300 to choose from here: http://www.google.com/search?hl=en&q=clinton+personal+tax+deductions+underwear For the verification on the nannies, just google their names plus words like 'nanny', 'Clinton', 'Chelsea', 'tax', etcetera. Hmm, I have no idea why the copy/paste was all choppy up there in the middle...Weird. @Benedict: This is more than dishonest. It's just so greedy. They had more than enough money to raise one child, but they made taxpayers pay for her entire childhood. Then they claimed tax relief for it in addition to that. And deducting for used underwear? Who else would DO that? Even if it wasn't ALL fraud, it's still just so....wrong. @Carl: Don't you think it gives some idea of what type of people they are? Don't you want to know what type of person you might be electing? I honestly never cared much for the Clintons because of all the shady things they have been involved in, and the fact that many of their friends and business partners are felons, but I seriously had no idea they were this low-class.....This is just trashy. And they called Paula Jones "trash". I bet Jones doesn't deduct income tax for used underwear. I have never heard of anything like that before. @Heidi: I agree, Chelsea's nannies were good people. That truly turned out to be to Chelsea's benefit. I think Chelsea turned out pretty well, and she's a very nice person. Not like Hillary or Bill at all. No GC, they've seen all of this. It's old news now, I just happened to find it while looking up inclusions in transparency laws, one thing led to another. There are literally thousands of links that verify these things. But, the Clintons have ALWAYS managed to get away with their activities, well except for being fined for these tax discrepencies. What do you think "Teflon President" means? I'm betting they find a way out of their upcoming fraud trial, too. I honestly believe that they won't be charged. OH, here's over 600 links for their "oversight" too: http://www.google.com/search?hl=en&q=%2414%2C615+clintons

IF you were president of the US, what 3 or 4 Laws of the Land would you change or impliment? 1. I'm thinking about simplifying the Tax Codes. How about a straight 15% tax for Everybody on ALL income? NO personal deductions. In fact , if a family had more than 2 children, they'd be penalized. $3k? 2. Dump this "War on Drugs"! Legalize all drugs, the same as tobacco and alcohol. Regulate and control it. If a druggie wants to kill himself, who cares? 3. Impliment a semi-military Draft. EVERYBODY does 2 yrs minimum in a military service OR as community service. Military pay. 4. Definitely get Out of Iraq! ... and most of the Middle East. Let those people keep fighting among themselves just as they have for 1,000 years. We have to develope our own bio-fuels. 5. Cut back or stop the "give-away" programs, like farm subsidies, foreign aid, etc... We give food and money to poor countries and what do they do? Have more kids who will hate US. 6 ....?

10 English questions!!!!!! please help!! best answer, and 10 points!!!!!!!!!!!!!!!!!!!? 1. Which of the following is not true concerning Income Tax Refunds? (1 point) It is advantageous to receive a large sum of money in the form of a refund so that you can use the money to pay down debt. You are essentially giving the government an interest–free loan. It means that you are having too much deducted from your paycheck. You haven't properly evaluated your personal tax circumstances. 2. When claiming dependents, they must meet the following criteria EXCEPT: (1 point) the dependent must be a relative. the dependent must reside with you. the dependent must be under nineteen years of age unless he or she is a full–time student. the dependent was unable to provide over half of his or her support for the year. 3. If you opt to put money in a medical flexible spending account rather than trying to amass enough medical expenses to itemize on your tax return, you are taking advantage of _____. (1 point) a credit withholding a deduction an exclusion 4. A form of taxation in which everyone pays an equal rate of taxes is called a _____. (1 point) progressive tax regressive tax flat tax net tax 5. A form of taxation in which the highest income earner pays the largest percentage of taxes is called a _____. (1 point) progressive tax regressive tax flat tax net tax 6. A form of taxation in which the lowest income earners pay the largest percentage of taxes is called a _____. (1 point) progressive tax regressive tax flat tax net tax 7. Which of the following is not considered part of your gross income? (1 point) Everything of value you received during the year Everything of value you received from April 15th to December 31st Bartered goods and services Money you win on a game show 8. Which of the following is not true about your adjusted gross income? (1 point) It is your income minus deductions It is your income plus your deductions It determines whether you are eligible for additional tax breaks It is your gross income minus deductions 9. Which of the following is true about "above–the–line" deductions? (1 point) They are tax breaks that you can claim without having to itemize They are listed just above the total taxable income on the 1040 tax form They reduce your tax bill rather than your taxable income You must itemize in order to take advantage of this deduction 10. A dollar–for–dollar reduction in your tax payment is called a _____. (1 point) deduction flat tax credit debit

What are the tax implications for leasing personal property to a company searching for natural gas? I'm particularly interested in the income generated from the lease. For example, if I received 100K up front does this get counted as straight income? Regardless of how it's taxed, are there special deductions or credits, given that this has to do with an alternate cleaner form of energy? Thanks!

federal income tax question? Using the federal income tax formula, which statement below is true? a) Taxable income equals adjusted gross income minus credits. b) Gross income items equal adjusted gross income minus personal exemptions. c) Adjusted gross income equals gross income items plus or minus adjustments to gross income. d) Adjusted gross income equals gross income items minus personal exemption deductions.

Hobby or Buisness 1040 income or schedule C? 1099-misc, Direct Sales? I have had a direct sales business/hobby for the past 5 years. The first year I had it, I claimed the income and expenses as a business on a schedule C and claimed a loss (I was expecting to run it as a business). The next year, I realized I was spending more money than I was making and claimed it on my personal taxes as misc income (not for profit) and equal amount losses (IRSmaximum) as deductions and have now done this for the past 3 years. This past year, I have been working harder at making it a more "for-profit" buisness. I feel I should be doing a Schedule C, but will this be a red flag for the IRS? My husband also has a hobby on the side that we also listed as misc income with equal losses on our 1040 but he is making more money as well (he received a 1099-misc with income in box 7). How will this look to the IRS, if we now have 2 schedule C's for businesses we were only claiming as hobbies for the past 3 years? Thank you in advance for your advice! Yes, looking at things now, I probably should have keeped a schedule C (I didn't realized I could extend the loss to profit years), unfortunately it is too late :). No, I do not keep an inventory for my direct sales.

Forward declaration of capital gain? Hi, I am currently a student and my taxable income is less than my personal deduction. I have about 6000$ left of non-refundable tax deduction and I have money invested in mutual funds. I plan to be making a lot more money in a two years and I will eventually have to pay income tax. I have a few mutual funds and ETFs I wanted to know if I can declare a capital gain on them in order to take advantage of my non-refundable tax credits? If so, can I use any price I could have sold them during the year or do I have to actually sell them and buy them back? I wanted to know as well if I can declare capital gain on other assets than actions, real estates or funds. Thanks a lot and have a nice day. Maxime

Could the U.S. Government run a balanced budget if revenue generated per year was $17,769,335,680.00? Based on the 2004, U.S. Census Bureau the total number of persons from 18 - 65 working and not handicapped is approximately 148,007,797. If they all paid 10.00 a month in Income tax the Total revenue to the federal government from personal income taxes would be over 17.5 Trillion Dollars. No need for the IRS. No end of year tax scrambles for individuals. No deductions, exemptions, manipulation, corrosion, or extortion. No insidious robbing of the rich to buy the votes of the poor Just all working persons 18 - 65 not handicapped to the point that they can't earn a living, (i.e. My Autistic son) paying $120.00 per year. Could The Government handle that? Could we live with that? Just a thought

individual income taxes? During the year, May had a salary of 30,000 and experienced following losses: loss from danage to rental property ($10,000), Loss from theft to rental properties (5,000), personal casualty gain 4000, Personal casualty loss (after $100 floor) (3,000). Whhat is the amount of May's Itemized deduction from these losses?

When filing jointly is the personal exemption added to the standard deduction for taxable income? I used an online tax calculator and I noticed that as filing jointly as a married couple we receive a $10,700 deduction in addition to another personal exemption of $6,800. Is that how it works? is the personal exemption added to the $10,700 and deducted from the gross income leaving taxable income? If we both earned $50,000 for the year will our taxable income be $50,000 - $10,700 - $6,800 = $32,500???? Thanks for any help in advance.

WILL YOU BE ABLE TO GET THE $7,500 TAX CREDIT? (read on)? 1. Who is eligible to claim the $7,500 tax credit? First time-home buyers purchasing any kind of home — new or resale — are eligible for the tax credit. 2. What is the definition of a first-time home buyer? The law defines "first-time home buyer" as a buyer who has not owned a principal residence during the three-year period prior to the purchase. 3. What types of homes will qualify for the tax credit? Any home purchased by an eligible first-time home buyer will qualify for the credit, provided that the home will be used as a principal residence and the buyer has not owned a home in the previous three years. This includes single-family detached homes, attached homes like townhouses, and condominiums. 4. Are there income limits to determine who is eligible to take the tax credit? Yes. Home buyers who file their taxes as single or head-of-household taxpayers can claim the credit if their modified adjusted gross income (MAGI) is less than $75,000. For married taxpayers filing a joint tax return, the MAGI limit is $150,000. The limit is based on the buyer’s modified adjusted gross income for the year that the house is purchased, except for certain purchases in 2009. 5. What is “modified adjusted gross income”? Modified adjusted gross income, or MAGI, is defined by the IRS. To find it, a taxpayer must first determine “adjusted gross income,” or AGI, which is total income for a year minus certain deductions (known as “adjustments” or “above-the-line deductions”), but before itemized deductions from Schedule A or personal exemptions are subtracted. On Forms 1040 and 1040A, AGI is the last number on page 1 and first number on page 2 of the form. For Form 1040-EZ, AGI appears on line 4 (as of 2007). Note that AGI includes all forms of income — including wages, salaries, interest income, dividends and capital gains. To determine modified adjusted gross income (MAGI), add to AGI certain amounts such as foreign income, foreign-housing deductions, student-loan deductions, IRA-contribution deductions and deductions for higher-education costs. 6. If my modified adjusted gross income (MAGI) is above the limit, do I qualify for any tax credit? Possibly. It depends on your income. Partial credits of less than $7,500 are available for some taxpayers whose MAGI exceeds the phaseout limits. The credit becomes totally unavailable for individual taxpayers with a modified adjusted gross income of more than $95,000 and for married taxpayers filing joint returns with an AGI of more than $170,000. 7. Can you give me an example of how the partial tax credit is determined? Just as an example, assume that a married couple has a modified adjusted gross income of $160,000. The applicable phaseout to qualify for the tax credit is $150,000, and the couple is $10,000 over this amount. Dividing $10,000 by $20,000 yields 0.5. When you subtract 0.5 from 1.0, the result is 0.5. To determine the amount of the partial first-time home buyer tax credit that is available to this couple, multiply $7,500 by 0.5. The result is $3,750. Here’s another example: assume that an individual home buyer has a modified adjusted gross income of $88,000. The buyer’s income exceeds $75,000 by $13,000. Dividing $13,000 by $20,000 yields 0.65. When you subtract 0.65 from 1.0, the result is 0.35. Multiplying $7,500 by 0.35 shows that the buyer is eligible for a partial tax credit of $2,625. Please remember that these examples are intended to provide a general idea of how the tax credit might be applied in different circumstances. You should always consult your tax advisor for information relating to your specific circumstances. 8. Does the credit amount differ based on tax filing status? No. The credit is in general equal to $7,500 for a qualified home purchase, whether the home buyer files taxes as a single or married taxpayer. However, if a household files its taxes as “married filing separately” (in effect, filing two returns), then the credit of $7,500 is claimed as a $3,750 credit on each of the two returns. 9. Are there any circumstances under which buyers whose incomes are at or below the $75,000 limit for singles or the $150,000 limit for married taxpayers might not be able to claim the full $7,500 tax credit? In general, the tax credit is equal to 10% of the qualified home purchase price, but the credit amount is capped or limited at $7,500. For most first-time home buyers, this means the credit will equal $7,500. For home buyers purchasing a home priced less than $75,000, the credit will equal 10% of the purchase price. 10. I heard that the tax credit is refundable. What does that mean? The fact that the credit is refundable means that the home buyer credit can be claimed even if the taxpayer has little or no federal income tax liability to offset. Typically this involves the government sending the taxpayer a check for a portion or even all of the amount of the refundable tax credit. For example, if a qualified home buyer expected federal income tax liability of $5,000 and had tax withholding of $4,000 for the year, then without the tax credit the taxpayer would owe the IRS $1,000 on April 15. Suppose now that taxpayer qualified for the $7,500 home buyer tax credit. As a result, the taxpayer would receive a check for $6,500 ($7,500 minus the $1,000 owed). 11. What is the difference between a tax credit and a tax deduction? A tax credit is a dollar-for-dollar reduction in what the taxpayer owes. That means that a taxpayer who owes $7,500 in income taxes and who receives a $7,500 tax credit would owe nothing to the IRS. A tax deduction is subtracted from the amount of income that is taxed. Using the same example, assume the taxpayer is in the 15% tax bracket and owes $7,500 in income taxes. If the taxpayer receives a $7,500 deduction, the taxpayer’s tax liability would be reduced by $1,125 (15% of $7,500), or lowered from $7,500 to $6,375. 12. Can I claim the tax credit if I finance the purchase of my home under a mortgage revenue bond (MRB) program? No. The tax credit cannot be combined with the MRB home buyer program. 13. I live in the District of Columbia. Can I claim both the D.C. first-time home buyer credit and this new credit? No. You can claim only one. 14. I am not a U.S. citizen. Can I claim the tax credit? Maybe. Anyone who is not a nonresident alien (as defined by the IRS), who has not owned a principal residence in the previous three years and who meets the income limits test may claim the tax credit for a qualified home purchase. The IRS provides a definition of “nonresident alien” in IRS Publication 519 (www.irs.gov/pub/irs-pdf/p519.pdf). 15. Does the credit have to be paid back to the government? If so, what are the payback provisions? Yes, the tax credit must be repaid. Home buyers will be required to repay the credit to the government, without interest, over 15 years or when they sell the house, if there is sufficient capital gain from the sale. For example, a home buyer claiming a $7,500 credit would repay the credit at $500 per year. The home owner does not have to begin making repayments on the credit until two years after the credit is claimed. So if the tax credit is claimed on the 2008 tax return, a $500 payment is not due until the 2010 tax return is filed. If the home owner sold the home, then the remaining credit amount would be due from the profit on the home sale. If there was insufficient profit, then the remaining credit payback would be forgiven. 16. Why must the money be repaid? The intent of Congress was to provide as large a financial resource as possible for home buyers in the year that they purchase a home. In addition to helping first-time home buyers, this will maximize the stimulus for the housing market and the economy, will help stabilize home prices and will increase home sales. The repayment requirement reduces the impact on the U.S. Treasury and assumes that home buyers will benefit from stabilized and, eventually, rising future housing prices. 17. Because the money must be repaid, isn’t the first-time home buyer program really a zero-interest loan rather than a traditional tax credit? Yes. Because the tax credit must be repaid, it operates like a zero-interest loan. Assuming an interest rate of 7%, that means the home owner saves up to $4,200 in interest payments over the 15-year repayment period. Compared to $7,500 financed through a 30-year mortgage with a 7% interest rate, the home buyer tax credit saves home buyers more than $8,100 in interest payments. The program is called a tax credit because it operates through the tax code and is administered by the IRS. Also like a tax credit, it provides a reduction in tax liability in the year it is claimed. 18. If I’m qualified for the tax credit and buy a home in 2009, can I apply the tax credit against my 2008 tax return? Yes. The law allows taxpayers to choose (“elect”) to treat qualified home purchases in 2009 as if the purchase occurred on Dec. 31, 2008. This means that the 2008 income limit (MAGI) applies and the election accelerates when the credit can be claimed (tax filing for 2008 returns instead of for 2009 returns). A benefit of this election is that a home buyer in 2009 will know their 2008 MAGI with certainty, thereby helping the buyer know whether the income limit will reduce their credit amount. 19. For a home purchase in 2009, can I choose whether to treat the purchase as occurring in 2008 or 2009, depending on in which year my credit amount is the largest? Yes. If the applicable income phaseout would reduce your home buyer tax credit amount in 2009 and a larger credit would be available using the 2008 MAGI amounts, then you can choose the year that yields the largest credit amount.

Vacation Rental Deductions on your Taxes.? Help me understand this statement: "But don't forget that second home or a vacation place with a mortgage. If it meets IRS guidelines for personal use during the tax year, then be sure to include interest paid on that property's loan on your Schedule A, too." Is it the LESS i rent out my second/vacation home, the MORE I can deduct the mortgage interest on my income? Is there a certain amount of days you cannot pass to rent out, in order to deduct the interest on your income i.e. no more than 30 days rent out of 365 days? I have a two bedroom, two bathroom condo at The Resort at Squaw Creek in Lake Tahoe, California. It's in a rental program, that probably rents out for about 150 days a year and about $40,000 in income. What happens? My expenses are greater than $40,000/yr of course, but it does pay for some of my mortgage. So.. does this mean that I will always pay ZERO taxs on the $40,000/yr b/c my expenses are greater? thnx! The Resort at Squaw Creek, Lake Tahoe, CA

Deduct education expense as startup business deduction over 5 years? My wife started going to a school to become a personal trainer (this was a new trade for her, and the school is not eligible for Federal Aid - so we can't deduct on our personal income taxes). The school is not mandatory for new trainers, but provides better skills and hands-on training (she could have studied from a book and tried to pass the accreditation exam without school). If she starts a business as an independent personal trainer, can she deduct the cost of tuition as a startup business deduction & amortize it over 5 years? If so, what are the main requirements for ensuring this is eligible?

Would it be so bad if income tax rates got doubled? It's a simple new tax rule, easy as pie. You take the amount of tax money your owe the IRS, and multiply it by 2 to get the new amount. If you already paid 2007 income taxes, you would just make believe you forgot to pay, and pay it again so it gets paid twice. This law could be applied retroactively, and you'd have till like June 1st to pay your second round of new income taxes now owed for 2007. It won't be so bad as you think. If you owed 15%, it'll be 30%. If you owed 35%, it's now 70%. But also your deductions would count twice! Your personal exemption would count twice! So cheer up. You'll probably give more in charitable deductions. :) And the extra set of income taxes would go towards Welfare, Public Housing, Food stamp programs, Medicaid, government acquisitions of foreclosed homes, and paying down the Federal debt. Should we support this new plan? Think of it as 2 easy payments of "however much you owe in taxes" each. Like on those 1-800 commercials on bottom of your TV screen.

I am selling a house and getting married, would it be better to claim cap gains before or after? My fiance owns his own business and it is incorporated. He has filed a loss the past two years on the business and his personal income is low. He has tax credit. I earn about 70,000 a year and have standard deductions.

what is my itemized tax deduction?(how much)? real estate taxes on personal residence $6000 sales tax $1000 property tax on my car $2000 state income tax $5000 self employment tax $4000

Do I owe any tax for only $4,000 total income from bank interest? I am confused about "personal exemption" and "standard deduction". Do I get both added together?

IF you were president of the US, what 3 or 4 Laws of the Land would you change or impliment? ... with permission from another Poster, I'm re-posting this Q in a more appropriate Section; Politics. 1. I'm thinking about simplifying the Tax Codes. How about a straight 15% tax for Everybody on ALL income? NO personal deductions. In fact , if a family had more than 2 children, they'd be penalized. $3k? 2. Dump this "War on Drugs"! Legalize all drugs, the same as tobacco and alcohol. Regulate and control it. If a druggie wants to kill himself, who cares? 3. Impliment a semi-military Draft. EVERYBODY does 2 yrs minimum in a military service OR as community service. Military pay. 4. Definitely get Out of Iraq! ... and most of the Middle East. Let those people keep fighting among themselves just as they have for 1,000 years. We have to develope our own bio-fuels. 5. Cut back or stop the "give-away" programs, like farm subsidies, foreign aid, etc... We give food and money to poor countries and what do they do? Have more kids who will hate US. 6 ....?

How (for next year) can I avoid getting screwed on my taxes?...am I getting screwed? I decided after college to work for my father. For the first 3 years, he paid me out of his personal or business account for the work I did. At the end of the year I received a 1099 and paid my income taxes as normal. In late 2006, he asked me to start my own business name and checking account. So this tax year (2007), HE would determine my pay, pay my business that amount and in turn I would pay that amount out of my business account to myself. In all reality my business made no $ because as soon as I got the $, I had to pay myself. All supplies, the work truck, gas and other deductions are in his company name. I also pay HIS other employee out of MY business account in the same fashion (he pays my business, then I pay him the exact amount). This year our SHARED accountant who hes been with for 30+ yrs has informed me that I have to pay the 15.3% self employment tax since I am now the "employer and employee"...am I gettting screwed because I never had to pay this before?

did i do taxes wrong? owe to fed. but large state refund? hubby and i filed married joint. i am SOLE income-hubby received no W2 (homemaker), no kids. filled out 1040ez and MO-1040a. this is how i did it. 1040ez info: line 1--federal AGI: $23,981 line 5--married filing jointly $17,500 line 6--taxable income $6,481 line 7--federal tax withheld $562 line 10--tax from taxtable $648 (all other lines are zero's) federal amount i owe--$86 mo-1040a (state)form-> http://dor.mo.gov/tax/personal/individual/forms/2007/m1040af.pdf line 3--total MO AGI $23,981 line 4--checked married filing joint and checked myself as spouse with income. exemption = $4,200 line 5--tax from fed. return $648 line 6--MO standard deduct. m.f.j.= $10,700 (line4+line5+line6=) line 9--total deductions $15,548 (line3-line9=) line 10--MO taxable income $8,433 line 11--MO tax from taxtable $285 line 12&14--MO tax withheld /total payments $702 (line14-line11=) line 15&18--refund of $417 did i do these wrong, or do i really owe $86 fed, with $417 state refund

WHOA, tax question, last year we got almost a $3000 return, this year we get less than a thousand, wat i miss? Taxable Income Adjusted Gross Income $41,709 $55,741 Less: Standard Deduction $10,300 $10,700 Less: Personal Exemptions $6,600 $6,800 ____________ ____________ Taxable Income $24,809 $38,241 Taxes and Credits Income Tax $2,969 $4,951 Less: Tax Credits $1,273 $63 ____________ ____________ Net Tax $1,696 $4,888 Payments Federal Tax Withholding $4,842 $5,854 Estimated Payments $0 $0 ____________ ____________ Total Payments $4,842 $5,854 ____________ ____________ Net Refund $3,146 $966 the info on the left was the info from 2006 the info on the right is from 2007. Though i noticed something, though we made almost $15,000 more this year, Federal Tax Withholding was only $1000 dollars more. My wife started a new position in September, maybe she did something wrong on her W-2? I dunno, tax guru's help me out here. Duh, this would prob be helpful for those answering to know.... in 2006 we got got married and were both full-time college students most the year in 2007 I am a part-time college student, she graduated in August of 06. BTW thanks to whoever gave the second answer, saves me a trip to one of those tax places that charge a hundred bucks.

taxes.... do i have this right? there are many kinds of tax deductions when running my business. right? 1.) Are cost of goods sold are 100% deuctable? 2.) if the cars are for business and personal I can deduct $.485 per mile, if it's for business only Can I duduct the payment and gas costs? 3.) If I buy equipment like a computer, I can't deduct the cost of the computer, because it's still an asset that is taking the place of what was cash right? What if it's part of the start up costs? If I sell the equipment do I have to consider it income? 4.) Are consumables like electricity and printer paper are 100% deductable. 5.) what about waste? We have a vinyl graphics business and have mistakes sometimes. Can I deduct the retail value of the wasted item. This is so confusing. how do I keep it straight?

Personal tax question...? I received a tax extension because of various problems. I am in the process of paying my 2005 taxes and missed the deadline because of a lengthy hospital stay. Last year I received a lump sum payment from Social Security disability for past payment and had to pay the full amount to a private disability insurance for payments I received from them in past years. This amount is not really income because I had to turn it all over to the private company. Can it be declared healthcare payments? Is there anyway I can declare this as a medical deduction of some kind? Is there some kind of deduction I can make? All I was paid this year was a small amount of SS disability because the private insurance company quit paying. I am in the process of a lawsuit with them. I have so many medical deductions I will probably still not have to pay any additional tax but I would like to get a bigger refund than I would receive if I have to use the $18,000. Thanks for your help.

Any tax experts around? In 2005, Heather sold her personal residence to keith for $300,000. Before the sale, Heather paid the real estate taxes of $8,030 for the calendar year. For income tax purposes, the deduction is apportioned as follows: $4,400 to Heather and $3,630 to Keith. a. What is Keith's basis in the residence? b. What is Heather's amount realized from the sale of the residence?

Consumer math help, 10 points.? 1. Sally earns $603.98 each pay period. If she is paid semimonthly, how much is her annual salary? 2. Helen earned 23,500 annually; 6.5% of her gross pay was withheld for state and local taxes. How much were her taxes? 3. Ron is a writer, so he must pay FICA tax at the self employed rate of 15.3% How much must he pay on an annual income of 38,500? 4.Barbara earns 24,500 per year. She pays 15% of her gross income for federal, state and local taxes. She is taxed at the FICA rate of 7.65%. She has 7% of her income withheld for personal deductions. She is paid twice a month. What is her net pay for each pay period? 5.Janet deposited 2,00 at 10% interest compounded quaterly. Find the amount in her account at the end of the two quarters. 6.Katie borrowed 750 at 14% interest for 3 months. How much does she have to repay under a single payment plan? 7.Joe borrowed 895 at 11.5 interest for 24 months under an add on plan. How much is his monthly payment?

Schedule C or Schedule K1 on Individual 1040 tax return? I have X amount of $ income from an LLC that I run with my wife, so, I file a 1065 for LLC and each one of us have get a Schedule K1 with X/2 amount as income. Now on our personal tax 1040, I want to claim a Home Office deduction and that, as I understand has to entered on Schedule C of 1040. Now, where do I report my income from the business? Should it be on Schedule C as income or as a partnership income? If we go Schedule C rout, Schedule C only shows a net loss from the business bcause of deductions whereas, I am reporting my income from the Business on Line 17 of 1040. Should I just do a Schedule C (with income reported on it) and not enter my Schedule K1 on line 17? Any help with this is appreciated. How exactly do I add Home Office Expenses to 1065 ? I am using Turbotax Business and I just cant find any way to add Home Office expenses to it. Unless, I just do the worksheet (in IRS pub 587) and then attach that to 1065.

Someone help with TAXES!!!? Can someone tell me why my taxable income is 0$ but I am only receiving a $5 refund? Last year we received a large tax return check and I am surprised this year that it is only $5. Did we make too much money? Taxable Income Adjusted Gross Income$15,105 Less: Standard Deduction$10,700 Less: Personal Exemptions$6,800 ____________ Taxable Income$0 We only had $5 withheld from Fed Income taxes, but the reason why I am confused is because I looked at last years W-2s and we only had $14 dollars withheld from those and still got $495 back.

income tax on housing loans? I have availed gold loans and personal loans for the specific purpose of housing from banks. let me know whether the interst charged by the banks are eligible for deduction under 80 c or any other clause . pl advise me

A modest proposal? I have to write a satirical essay similar to a modest proposal. I was thinking about doing on education, like no child left behind but extreme or something. or suggesting teachers get paid commission based on the number children that pass or if a child fails thier parents have to forfeit their tax deduction they get for having the child or for every child in america that the pressident losses a certain amount of money from his personal income I was wondering if any one could help me or tell me if think any of these ideas are good thank you for the third one i meant to say that for every child in america that fails the president gets a certian amount of money deducted from is personal income

2008 tax rebate - help!? My husband and I have discussed this a few times and it ends in an argument every time. His understanding is that every taxpayer will get $800 - $1600 for married filing joint, plus $300 for each child. I'm pretty sure that I read it's only $300 per taxpayer if you didn't pay any taxes and $600 if you paid at least that much in taxes. So here's where i need the help. Our income: $44269 Standard deduction: $10700 personal exemptions: $20400 Taxable income: $13169 And this is where I get confused. Our total taxes were $1318 but after the child tax credit we didn't owe anything so than our tax liability is $0 and we would only get $300/taxpayer? Plus we have four kids so that's another $1200. I'm fairly certain that I have it right b/c we got all our taxes back and then some. I just want to make sure. Thanks! I'm fairly certain that while trying to research this topic I had read that this "rebate" is NOT a prebate and therefore will have no effect on next year's taxes. Just wondering if anyone else has heard this or can confirm it. Now that I want to find the article I read it in, it has evaded me. But I did find a great quote from President Bush: In a statement on the economy delivered Friday morning, President Bush said any plan should feature "direct and rapid income tax relief" to boost consumer spending. "Letting Americans keep more of their own money should increase consumer spending, and lift our economy at a time when people otherwise might spend less," he said. The above paragraph just seems so wrong...letting Americans keep MORE of their OWN money?

standard deduction and personal exemption.? if my son, now 15, has a income of 10,000,and filing his own tax return, how does it have impact on my tax return?-can i claim him, if he opt not to claim on his tax return? would i be eligible to claim child tax credit? if i am an illinois resident, how it affects on my state return? how much amt he would be paying state tax on?

I only got $2000 back on my 2007 tax return, Why? I only got a small amount on my 2007 Tax Return. I am married filing jointly in New York. This is my first job and I had an income of about $21,000 and had about $2000 withheld Federally and $1000 withheld in State. My wife had about $33,000 of income and $4000 Federally withheld and about $1500 withheld from the State. Together we got about $6500 in personal deductions and $10,700 in standard deductions - Federally. We had about $15,000 in State deductions. I though that I would be able to claim more deductions but turbo tax didn't allow it, at least my standard was higher than the itemized. We only got $950 back on our Federal from $6000 we had withheld together. We got about $1300 on our State, but why so little on the Federal? Thanks a lot.

. From net earnings of $740 per month, Ginger Elliott must spend $200 for her portion of the rent on an apar . From net earnings of $740 per month, Ginger Elliott must spend $200 for her portion of the rent on an apartment she shares with two friends. What percent of her net income is her rent payment? A. 27 percent B. 32 percent C. 38 percent D. 73 percent 10. John Davis makes $9.75 an hour. He works four hours on Monday, six hours on Tuesday, five hours on Wednesday, five hours on Thursday, and seven hours on Friday. What is his gross pay? A. $132.70 B. $174.20 C. $263.25 D. $269.98 11. Victor Malaba has a net income of $1240 per month. If he spends $150 on food, $244 on a car payment, $300 on rent, and $50 on savings, what percent of his net income can he spend on other things? A. 300 percent B. 64 percent C. 43 percent D. 40 percent 12. John and Mary Billings own a condominium with an assessed value of $110,000. If the tax rate is 25 mills per $1.00 of assessed valuation, how much tax do they pay? A. $2,750 B. $1,840 C. $1,420 D. $1,200 13. Moneys taken out of a salary for such things as taxes, medical insurance, and retirement funds are called A. contributions. B. commissions. C. deductions. D. exemptions. 14. The gross income of Ginger Hughes is $215 per week. Her deductions are: $15.16, FICA tax; $29.33, income tax; 2% state tax; 1% city tax; and 3% retirement fund. What is her net income? A. $57.39 B. $157.61 C. $170.51 D. $202.10 15. Henry Devine bought a new dishwasher for $320. He paid $20 down and made 10 monthly payments of $34. What actual yearly interest rate did Henry pay? A. 14.55 B. 29.09 C. 34.38 D. 68.75 16. The letter of application is intended to A. find out what the prospective employer has to offer. B. remind the prospective employer of your recent interview. C. outline your value to a prospective employer. D. accompany your portfolio. 17. Suppose your bank honors a check for which you don't have sufficient funds in your checking account. This action means that you've arranged beforehand for a/an A. overdraft loan. B. personal loan. C. mortgage loan. D. installment loan. 18. What is the reading in kwhr of the electric meter shown in the exam figure below? A. 0631 B. 1641 C. 1732 D. 9742 19. Jim paddles from one shore of a lake three miles wide at 4 mph, and John paddles from the opposite shore at 5 mph. How long will they travel before they meet? A. 20 minutes B. 27 minutes C. 1 hour, 24 minutes D. 3 hours 20. If three bags of birdseed cost $14.16, how much will 14 bags cost? A. $30.34 B. $33.71 C. $66.08 D. $70.80

Can someone explain this to me please? I was looking for info on the tax rebate stimulus package and found this: Rebate. An eligible individual will receive a basic credit equal to the greater of: (1) his net income tax liability up to a maximum of $600 ($1,200 for a joint return); or (2) $300 ($600 for a joint return) if either (a) the taxpayer's qualifying income is at least $3,000; or (b) his net income tax liability is at least $1 and gross income is greater than the sum of the applicable basic standard deduction amount and one personal exemption (two personal exemptions for a joint return). Qualifying income is earned income generally, veterans' disability payments (including payments to survivors of disabled veterans), and social security benefits. There will be an additional $300 per-child credit amount. http://ria.thomson.com/taxwatch/default.asp Does this mean if you had $0 tax liability that you will not get the rabate? For example, we made about $40k but got back all our taxes b/c we have 4 kids.

Okay you tax specialists---I have a question about deductions for legal fees incurred on estates.? I need to know if there are any deductions for legal fees for a widow. I also had a car that the estate should have signed over to me because I paid fees and bills for the estate and also they owed me money for my late husband's income. The estate was insolvent. I was only married for 4 months to my husband. We had lived together for 1 and 1/2 years. He did not put my name on the accounts or update his will. Therefore his 21 year old son got the house and all of the assets. Therefore my attorney says that I get everything on my personal set aside list, including the car. I do not get the house. I gave the house to my stepson(in Texas the widow can live in the house as long as she wants.) I am fighting legally to receive the list. Are any of the legal fees tax deductible?

Can lender Ammend 1098 form? I’m trying to fill my 2007 income tax for this year and realized I haven’t been included in the mortgage tax 1098 form from last year that was reported by Chase to the IRS. I bought a house with my parents last year and at the time we were told it was best to have the mortgage under their names and I would only be part of property title. Is it possible for me to have the 1098 amended so that I can also deduct this money, which is half of all payments made to the lender since the time of the purchase? My personal bank statements can prove the disbursement made from my account. Or what other way should I pursuit in order to have this deductions show in this year income tax. Suggestions are highly appreciated.

can some one who is good in math help me with my math? LOG OFF My Homepage My Courses Student # 50457691 -------------------------------------------------------------------------------- Examination Number 986033RR CONSUMER MATH, PART 2 -------------------------------------------------------------------------------- When you have completed your exam and reviewed your answers, click Submit Exam. Answers will not be recorded until you hit Submit Exam. If you need to exit before completing the exam, click Cancel Exam. Questions 1 to 20: Select the best answer to each question. 1. John and Mary Billings own a condominium with an assessed value of $110,000. If the tax rate is 25 mills per $1.00 of assessed valuation, how much tax do they pay? A. $1,200 B. $2,750 C. $1,420 D. $1,840 2. John Davis makes $9.75 an hour. He works four hours on Monday, six hours on Tuesday, five hours on Wednesday, five hours on Thursday, and seven hours on Friday. What is his gross pay? A. $263.25 B. $269.98 C. $132.70 D. $174.20 3. Mary Palm's checking account had a starting balance of $785.63. She wrote a check for $57.00 for groceries and a check for $125.00 for a car payment. Yesterday she deposited $57.25 in her checking account. What is Mary's current balance? A. $660.88 B. $554.26 C. $796.38 D. $603.63 4. Suppose your bank honors a check for which you don't have sufficient funds in your checking account. This action means that you've arranged beforehand for a/an A. personal loan. B. overdraft loan. C. mortgage loan. D. installment loan. 5. Carlos Martin received a statement from his bank showing a balance of $56.75 as of March 15th. His checkbook shows a balance of $87.37 as of March 20. The bank returned all the cancelled checks but two. One check was for $5.00 and the other was for $13.25. How much did Carlos deposit in his account between the March 15 and the March 20? A. $48.87 B. $11.22 C. $125.87 D. $162.37 6. Phil Smith is a car salesman. Last week his total sales amounted to $27,650.00, and he received $1,382.50 in commission. What is his rate of commission? A. 4.8 percent B. 5 percent C. 17 percent D. 23 percent 7. Dawn Lingua bought three yards of cloth to make some curtains. The cloth was on sale for $2.25 per yard. How much did Dawn pay for the cloth if the sales tax was 5%? A. $7.25 B. $8.07 C. $7.09 D. $2.36 8. Jan Quint earns $7.00 an hour at her job and is entitled to time-and-a-half for overtime, and double time on holidays. Last week she worked 40 hours of regular time, 9 hours of overtime, and 12 hours of holiday time. How much did she earn last week? A. $524.50 B. $532.00 C. $542.50 D. $348.75 9. From net earnings of $740 per month, Ginger Elliott must spend $200 for her portion of the rent on an apartment she shares with two friends. What percent of her net income is her rent payment? A. 38 percent B. 27 percent C. 73 percent D. 32 percent 10. Lily Quinn makes $12.50 and hour. She works four hours on Monday, six hours on Tuesday, nine hours on Wednesday, three hours on Thursday, and seven hours on Friday. What is her gross pay? A. $325.50 B. $420.50 C. $362.50 D. $462.50 11. Eliza Savage received a statement from her bank showing a checking account balance of $324.18 as of January 18. Her own checkbook shows a balance of $487.38 as of January 29. The bank returned all of the cancelled checks but three. The amounts of these three checks are $15.00, $77.49, and $124.28. How much did Eliza deposit in her account between January 18 and January 29? A. $197.24 B. $379.97 C. $54.44 D. $201.12 12. Glenn Andrews recently bought a new motorbike for $3,950. If he had to pay 6 percent sales tax on the bike, what was the total cost of the bike? A. $4,187 B. $2,370 C. $4,010 D. $3,713 13. Jim paddles from one shore of a lake three miles wide at 4 mph, and John paddles from the opposite shore at 5 mph. How long will they travel before they meet? A. 27 minutes B. 20 minutes C. 1 hour, 24 minutes D. 3 hours 14. The gross income of David Vaughn is $785 per week. His deductions are $42.25, FICA tax; $90.33, income tax; 2% state tax; 1% city tax; and 3% retirement fund. What is her net income for one week? A. $628.77 B. $749.77 C. $605.32 D. $675.32 15. Victor Malaba has a net income of $1,240 per month. If he spends $150 on food, $244 on a car payment, $300 on rent, and $50 on savings, what percent of his net income can he spend on other things? A. 43 percent B. 64 percent C. 40 percent D. 300 percent 16. Juan Ramirez sells suits in a major department store on weekends. He earns a commission of 5 percent on the first ten suits, and if he sells more than ten, he earns an additional 3 percent on the additional suits. Last weekend Juan sold thirteen $250 suits. What was his commission? A. $260.00 B. $147.50 C. $185.00 D. $210.40 17. The gross income of Ginger Hughes is $215 per week. Her deductions are: $15.16, FICA tax; $29.33, income tax; 2% state tax; 1% city tax; and 3% retirement fund. What is her net income? A. $57.39 B. $202.10 C. $157.61 D. $170.51 18. Rob Polanski is a tractor salesman. Last week his total sales amounted to $38,642.00, and he received $2,704.94 in commission. What is his rate of commission? A. 7% B. 5.9% C. 6% D. 8.4% 19. Alice Correa bought three yards of cloth to make a dress. The cloth was on sale for $1.93 per yard. How much did Alice pay for the cloth if the sales tax was 5 percent? A. $6.08 B. $2.02 C. $5.82 D. $5.79 20. What is the reading in kwhr of the electric meter shown in the exam figure below? A. 9742 B. 1641 C. 0631 D. 1732 If you experience technical difficulty while taking this exam, wait a few minutes and follow the instructions on the FAQ. Copyright & Terms | Privacy Policy

Consumer Math Part 2.? 12. John and Mary Billings own a condominium with an assessed value of $110,000. If the tax rate is 25 mills per $1.00 of assessed valuation, how much tax do they pay? A. $2,750. B. $1,840. C. $1,420. D. $1,200. A--Is not correct. 14.The gross income of Ginger Hughes is $215 per week. Her deductions are $15.16, FICA tax:$29.33, income tax: 2% state tax: 1% city tax: and 3% retirement fund. What is her net income? A. $57.39. B. $157.61. C. $170.51. D. $202.10. C--Is not correct. 17. Suppose your bank honors a check for which you don’t have sufficient funds in your checking account. This action means that you’ve arranged beforehand for a/an. A. Overdraft Loan. B. Personal Loan. C. Mortgage Loan. D. Installment Loan. D--Is not correct. 18. What is the reading in kwhr of the electric meter shown in the figure below. A. 0631. B. 1641. C. 1732. D.9742. C--Is not correct. Only four, they dont give you enough characters to work with. I am helping a friend. http://img.photobucket.com/albums/v693/car_slut/00706400Q18.jpg http://img.photobucket.com/albums/v732/car_slut2/00706400Q18.jpg Sorry.

turbotax home & business; which does 1099-misc go under? Hi, I am an independent contractor and received a 1099-misc from my employer. I have turbotax home & business 07, and I think I enter the 1099-misc under personal income but I want to make sure because for the 06 turbotax home & business, there wasn't a 1099-misc for personal but business only. One last thing, turbotax is great, but I want to maximize my deductions and was wondering it is worth the money to let a tax expert review/do my taxes. All I have is a 1099-misc and 1099-int. I've made less than 30k that year and after taking off the deductions I owe about 6k. I want to try to make this around 4~5k if possible. Does anyone have any recommendations and will know about how much it'll cost? Thanks!

Tax Return entries for Owner Distribution of S-Corporation? I am a 100% owner and sole employee/principal of an S-Corporation that was converted from a C-Corporation on 1/1/2006. For 2006, I have paid myself $32k in W-2 income and have made Owner Distributions (not W-2 payroll) of $49k. As of 12/31/06, there is approximately $20k remaining as Profit (and in cash) for the company. I understand that my personal tax return will include the $32k W-2 wages as well as the $49k distribution. A few questions: (1) I understand that Owner Distributions are a return of equity but am not sure where on an 1120-S (or K-1?) the entries appear for this distribution. I assume this is NOT a deduction for the company. (2) As for the remaining $20k profit/cash, I believe that I am personally responsible for taxes on this amount for TY 2006, right? Does it make sense to distribute it? If so, in 2006 or 2007? (3) Lastly, if I distribute the addt'l $20k in 2006, am I looking for trouble from the IRS to have $32k W-2 and $69k Distribution? Thank you.

Tax question? I work as an independent contractor. I will get a 1099 at year end for what I was paid. No deductions are take out. Do I have to pay self-employment taxes (Social Security tax) on this. Can personal expenses used to generate this income be deducted? I use my personal vehicle for this so can I count mileage?

Is this the correct tax code? My mother has worked part time for the past 8 years and her 2006/07 P60 had her on a final tax code of 503L with a gross pay of £5755.85, NI £169.39 and tax 71.60. She had no other income. In December 2006 I hired her as a personal assistant to help care for my disabled son, funded by Direct Payments. She was put on a BR tax code, which I always assumed was correct for a second job. Her 2006/07 P60 for this job showed a gross total of £2040.00, no NI deduction and tax 448.80. She contacted the council tax benefit office when she started work for me and they told her she was on the incorrect tax code for the second job as she has such a low income, but they couldn't advise any further. Does anyone know if this sounds correct? I don't think she's had a pay rise so lets say for 2007/08 her gross salary for her main job is £5755 on a 522L tax code. Her earnings from me will be £3536 gross. Should she still be on a BR tax code? Seems excessive for under £10,000 total? Thanks

Independent Contractor? A good friend of mine owns a Jani-King cleaning franchise and my wife has been employed by him for a couple of years. Starting last year my wife started doing it full-time. I have a couple of questions... 1. We have received about $12,000.00 in income during 2007 and have not paid any taxes on that income. What kind of percentage of that income can we expect to pay? 2. Her boss provides all of the supplies, however we use one of our personal vehicle to go from job site to job site. I know she drives approximately 250 miles each week. Can we deduct the mileage as business expense as long as we know what the daily amount is (we have kept track). 3. Should I look at any other deductions? I know there will be people that will say that we need to speak to an accountant, and we intend to. I am just looking for a little education before we meet with one. Any assistance is greatly appreciated. I should have clarified the section about my income. I work for an employer (city government) and our total household income was about 53K including the 12K we made as a contractor.

Math help!? Question: Jim earned wages of $95,255, recieved $4904 in interest from a savings account, and contributed $6223 to a tax deferred retirement plan. He was entitled to a personal exemption of $3050 and had deductions totaling $8883. Find his adjusted gross income? Note the answer is $93,936, I just need help on how to solve the problem.

Math help!? Question: Jim earned wages of $95,255, recieved $4904 in interest from a savings account, and contributed $6223 to a tax deferred retirement plan. He was entitled to a personal exemption of $3050 and had deductions totaling $8883. Find his adjusted gross income? Note the answer is $93,936, I just need help on how to solve the problem.

401k cash out question - help? Okay, my company merged with another company and we will have the option of cashing out our 401k - I have about 10,000 in it, however, I have about 5000 in credit card debt which is costing me around $250+ per month in bills AND my new company will allow us to contribute into a ROTH 401k. In addition I have a personal ROTH IRA that I can supplement with this extra money. My question is - or opinions that I am trying to gather is this - Does it make sense to become debt free at this time so that I can supplement ROTH investments that will allow me to pay taxes now and as I age and my income grows I will no longer be responsible for paying taxes on my compounding interest. Whereas this 401k - when I cash it at retirement (which I will be at a higher tax bracket) or roll it, I will have to pay taxes on it anyway. I am aware of the FIT deduction that will happen if I cut the check. What do you think yahooers?

How much estimated tax do I owe on the taxable part of my fellowships? So I am a grad student and i've received some fellowships for the coming academic year. They are as follows: $7500 $10530 TOTAL: $18300 (all of it taxable because it will go toward living expenses) So, according to my calculations for Federal Estimated Tax (form f1040es), my standard deduction is $10,700 (married filing jointly) and I can claim two personal exemptions, one for myself and one for my husband: $6800. The total amount I can deduct from my gross income is therefore: $17500. Thus, subtracting $17500 from $18300 = $800 in taxable income. I would therefore not have to pay any estimated tax because the amount is below $1000. This just doesn't seem right to me. That would essentially mean that i would be walking away with $18300 tax free. Also, I have a salaried job that I've netted $12000 from and the federal govt has taken out about $3000 from. Can somebody please explain this tax mystery to me? Thanks! I also have a salaried job that has withheld taxes. Do I have to take this into account when I list my gross income on the estimated taxes form? I thought that "gross income" on the estimated taxes form was only for income that has not been taxed.

Tax question? my husband and I are filing a joint return. for the year, we had a gross income of $65,000 and adjustments to income to $4,000.00 we will use the standard deduction of $6,900 and are qualify for 2 personal exemptions of $2650.00 each. what is our taxable income total this is just a figure please just work with this figure

How can we save tax? Our annual income is around 180000 and we have no kids or any educational loans. We are renting now and plan to continue for some more time. After taking itemized deductions and personal exemtions we still owe a lot of tax each year. We do maximize our 401k and IRAs as well and claim 0 on W-4. Is there something we are missing or we have to keep paying unless we buy a house? Thank you for your suggestions....... Thanks guys.... in fact my business is set to open in 2008. But it is in my home country and not here. We are funding it through our savings. Can we write off the expenses here? I am not sure...... will talk to a tax attorney... thnx again