The Tax Preparation Blog

Archive for August, 2006

Question: Canadian Tax Rate?!?

When my dad lived in Ottawa about 20 years ago, he was paying around 35% of his income as tax. Of late he has been thinking of moving back to Canada from the US, but a Canadian friend told him that he is paying nearly 60% of his income as tax!!! Is this accurate – it seems outrageous! I can’t fathom anyone doling out their hard earned salary just to give more than half of it away!

Answer: That number is still wrong.
http://www.cra-arc.gc.ca/tax/individuals/faq/taxrates-e.html lists the tax rates.

Now your father’s friend might be including non-income taxes like property tax, GST which is a VAT, and provincial retail sales taxes

Fiscal prudence needed at Township

others also read… Editor: I noted various pre-Christmas articles regarding the intention of Langley Township to float a 4.95 per cent tax increase for this year.

Public Affairs – Tom Geoghegan

Question: how can i find out what my refund could be for NEXT year?

i know i’m a “little” early, but I have just started a new job.

It’s salary $28,000 annually.
I already know what I’m going to be expecting each paycheck cause I tried out one of those paycheck calculators…

But i want to know if there’s a calculator that will tell me how much of a refund I will receive come tax season 2009.

I live in Texas, (no state taxes, only federal) and am I’ve chosen 0 federal allowances.

Answer: Figure your estimated tax on Form 1040-ES then subtract it from how much is withheld from each pay check now times the number of paydays in the year and you should be pretty close.

The Color of Money: Tweaks can help budget in new year

WASHINGTON — Despite a still funky economy, many people are doing well.

Question: i want to have a holiday to US?

i’am a full housewife here in singapore,my husband works here as a civil eng’r,we live here with our 3kids,we are permanent resident here….i’am planning to go for holiday in US,but i think US embassy asking for LETTER OF LEAVE OF ABSENCE,TAX CERTIFICATION ETC ETC..but i can provide a bank certificate to show that i have enough savings to my account,does US embassy allows housewife like me to have an holiday to their place?any idea what document will i need to provide to go there?travel agencies are not allowed now to process documents for visa,must apply in person to US embassy…thank u very much
I’ll just stay there for a month..wanna visit my relatives and friends

Answer: Other than having enough money, when approving a visa to the US, the most important thing the embassy officer considers is if you would overstay your visa and became an illegal in the US. If you are going alone while your entire family remains in Singapore, your chances of getting approved are high because you have many good reasons to return after your holiday. In your case, showing documents that prove you are married and have kids, and that your husband is a professional will ease the minds of the embassy people.

Coupons.com Incorporated Names Richard Hornstein Chief Financial Officer

MOUNTAIN VIEW, Calif.—-Coupons.com Incorporated, the leader in digital coupons, today announced the appointment of Richard Hornstein as the company’s chief financial officer. Mr. Hornstein brings more than 20 years of financial management experience and over a decade of experience as chief financial officer of both public and private companies, including rapid-growth and international …

Removing Executor of the Will

Question: What happens if i didn’t file a one of my W2’s with my taxes?

Last year i went to a H&R block and did my taxes, but after showing up there i didn’t have one of my W2’s and the tax preparer said it shouldn’t make a diffrence as long as i file it next year (which would be this year) and didn’t owe anything in. I called to see about getting a appointment to do my taxes a couple days ago and the lady said that i must have ALL income for this year in order to file…this is in a different H&R block location than i usually go, yet my usuall preparer says it is ok to not file one but to make sure to do it next year… so who is right and who is wrong? whats the penalty of not filing one….i don’t owe in so is it a big deal??

Answer: No,it’s not a big deal and you may even get more money back.All you need to do is file a 1040x.

H&R Block Settles Federal Lawsuit

H&R Block Inc. agreed to pay as much as $20.2 million to customers that bought its Express IRAs to settle a federal lawsuit that alleged the relatively small accounts were virtually guaranteed to lose money because they charged high fees.

New York Tax Attorney – Sean Chi offers advice on Reducing Your Tax Debt

Question: If I file joint return with husband will I be liable for back taxes he owe before marriage?

We got married Sept 2007 and he owe back taxes of $3500 for 1996 tax year and $1400 for 2000 tax year. He is currently on disability due to kidney disease. I plan on filing joint return this year 2007 if any overpayment is due will I be penalized for his tax liabilities.

Answer: You personally cannot be held liable for his debts prior to the marriage, however if you file a joint return with him that shows a refund due that entire refund can be captured to be applied against that debt.

There are 2 ways to deal with that. Either bump up you withholding allowances enough that you have a small tax debt to pay at filing time OR file Form 8379 with your return. Obviously it’s too late to adjust your withholdings for 2007 so the From 8379 is your only option right now. The Form 8379 will apportion your refunds. You’ll get your share and his share will be captured against his debt.

Extension gives you time to file your return

April 15 is almost here, and I’m missing a piece of information I need to finalize my tax return. I know I’m going to owe the IRS some money. I also know I’m not going to have all the pieces in place to get my return completed. What’s the best course of action?

How To Pay Less In Taxes