The Tax Preparation Blog

Archive for August, 2008

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Question: Filing a tax extension?

I am in default on my student loans. I talked to the lender today and set up payments for this loan rehab which takes 9 months. They told me not to file my return yet and to file for an extension because by October I will be out of default status and will be eligible for my tax return.

Has anyone ever done this to avoid the IRS taking your return?

Also how long is an extension for? My loan will come out of default status by the end of Oct. and then it takes up to 30 days to update.

Do I have to file state still if I file for an extension on Federal?

Thanks.
Since I entered into this loan rehab and I will have made 4 payments by April, will they still take my refund?

Answer: Generally, the IRS cannot extend the due date of your return for more
than 6 months (October 15, 2009, for most calendar year
taxpayers). However, there may be an exception if you are living
out of the country. See Pub. 54 for more information.

Tax Form for Federal Extension:

http://www.irs.gov/pub/irs-pdf/f4868.pdf

State Extension: Yes you do still have to file an extension for your home state or any other state where you made any income.

See:

http://www.ehow.com/how_2126018_file-ext…

http://www.efile.com/state-tax/state-ext…

http://www.efile.com/tax-day/tax-day.asp

Schuff Steel Company Qualifies for American Recovery and Reinvestment Act Section 48C Clean Energy Manufacturing Tax …

PHOENIX, AZ–(Marketwire – January 11, 2010) – Schuff Steel Company , through its parent, Schuff International, Inc. ( PINKSHEETS : SHFK ), has qualified for a federal tax credit in the amount of $7,073,316 as part of the American Recovery and Reinvestment Act (ARRA) Section 48C Clean Energy Manufacturing Tax Credit . Schuff Steel, the largest steel fabricator and erector in the United States …

Homebuyers Combine State & Federal Tax Credits for $18,00…

Chronicles of a ‘Failed State’

People in power often choose their entourage (public officials) by attaching a large weight to loyalty and near zero weight to competence. It is natural for politicians to seek loyalty. However, when competence gets neglected, the results can be disastrous.

Tax Tips: Received a Letter from the IRS? – January 2010

Question: Regarding taxes and company *not state or fed* paid disability, is this money taxable in the state of VA?

I receive company paid disability at 66% of my regular salary which is managed by Aetna. When I finally got my claim approved I received four and a half months of payment, with no taxes taken out. I reside in the state of Virginia.

Should I be filing quarterly payments for federal taxes on my company disability payments? Is it considered ‘income’ for state and federal purposes?

If I AM supposed to be paying taxes on this money isn’t it illegal for it to be provided to me without giving me the option to fill out a W-4 form–without a completed form they should have been withholding at the highest rate possible.

Aetna has been completely useless in helping with questions about the taxation situation. I’ve been setting money aside from this but I really don’t have a huge amount of money to give to a tax agent just to tell me what Aetna darn well should already know.

Answer: Who paid for the insurance coverage? If you paid for it with tax-paid dollars, the payments are tax free. If you paid for it with pre-tax dollars or if your employer paid for it, it’s taxed as ordinary income. If it was split between tax-paid dollars and either pre-tax or employer paid, the benefits are split taxable and non-taxable in the same proportion that the premiums were paid.

If you want taxes withheld, you should simply ask them to do so. They aren’t required to do so in most cases unless you’ve been flagged for backup withholding by the IRS — and I’m not sure about the backup withholding provisions as it applies to disability coverage. If they can’t or won’t withhold taxes, then you should set aside enough to pay them and make the quarterly estimated payments using Form 1040-ES.

VA will have its own rules; you’ll have to check the VA DOR website on that.

payUSAtax(TM) Provides Last Minute IRS Estimated Tax Payments with a Credit Card at the Lowest Cost Ever Offered

RBS WorldPay is offering federal taxpayers, who have a quarterly estimated tax payment, several low cost and convenient last minute electronic tax payment options prior to this quarter’s January 15, 2010 tax deadline.

Taxes, Spending and the Next President

Labor, Business Factions Compile Legislative Agendas

Tax reforms, worker safety and the right of state workers to organize in unions are items that could come up during the session.

Integrated Wealth Strategies presents: An Introduction to the Unrelated Business Income Tax