The Tax Preparation Blog

Archive for May, 2009

Question: What is the typical preparation cost for a joint tax return with a business and pending divorce involved?

Answer: Assuming you can file jointly as of last December 31 {address of spouse is the same as yours}, it would depend upon the time, the number of pages or the knowledge. Some charge by the number of pages. even a few enrolled agents do it this way. But some charge by how much they have to use their brain. That’s what I did when I practiced. If you own one business, it could cost you between 600 and 4500. If you own more than one, it could cost more.

Enrolled agents are professional tax practitioners who have technical expertise in the field of taxation, and are licensed to represent taxpayers before the Internal Revenue Service at all administrative levels. Moreover, enrolled agents are the only tax practitioners required by Federal law to maintain their expertise through continuing professional education. Tax attorneys and CPA’s used to, but lobbied and no longer are required. It was too hard for them.

http://www.naea.org

Community Calendar

Submissions for Community Calendar are required 14 days preceding the date of publication. Send to: Niles Managing Editor, Pioneer Press, 3701 W. Lake Ave., Glenview IL 60026. Information may be faxed to (847) 486-7495 or e-mailed to mbottari@pioneerlocal.com.

How much will it cost to get my taxes done?

Question: 2010 Child Tax Credit?

I’m sooo confused!!
I’ve been told that this year low income families will be eligible to receive $3,000 from the child tax income credit. Yet I can’t find anything on-line about this & knowing little to nothing about taxes to begin with I’m just going around in circles.
I’m 23, a single mom, live in Michigan, and had my son in January but have only worked 4mos this year earning approximately $2,500. Do I qualify? What am I looking at getting back? I know it’s a little early to be worrying about this but again, I live in Michigan & knowing the kind of money that I’m looking at having is essential to my survival. Does anyone do taxes for a living or is familiar with the rules & regulations regarding this years taxes?
Please help!
I expected that what I was told was wrong. It sounded absurd. However, I’ve heard it from about 4 people & it really started to pique my curiosity.
Although none of those people have kids. Haha

Answer: the child credit for 2009 is $1000 and applies to your tax liability(and yes, your sources don’t know what they are talking about)
if you have none it is not used
you may be entitled to the EIC, if you had earned income and with a child in your home under 17, if this applies to you then you possibly will be eligible for ‘additional child credit’(which is the remainder of the $1000 that wasn’t used to reduce your tax liability)

Monday newspaper round-up: Cadbury, Ryanair, Goldman Sachs

LONDON (SHARECAST) – Kraft is drawing up plans to raise its £10.3bn hostile offer for Cadbury ahead of a deadline this month as the takeover battle for the UK confectionery group reaches its final stages.

What is taxed in regulations?

A greenslip or compulsory third party insurance (CTP) is a legal requirement for vehicles registered in NSW.To register your vehicle you must have a green slip.Your greenslip covers injury to other people when your vehicle is involved in an accident. Your greenslip does not cover damage to property, other vehicles or to your vehicle, nor does the greenslip cover theft. Insurance for those occurences is obtained through different policies, which you should consider taking out.

Here is everything you need to know about acquiring a greenslip. Check out these ten notes:

1. Seven insurers provide greenslips in NSW.
2. Greenslip prices vary…you need to compare prices.
3. You can compare prices by contacting each insurer or by using the greenslip price comparison service operated by the Motor Accident Authority, the Green Slip Calculator. Contact details for each insurer are set out on this site. A link to the MAA’s Green Slip Calculator is also on this site. The MAA’s Green Slip Calculator is the only service which provides prices for each of the seven green slip insurers.
4. Greenslips are the same, regardless of insurer, other than in respect of at fault driver cover, which is an extra feature provided by some insurers.
5. Not all insurers offer an online service for quotes and purchase.
6. All insurers provide call centre service. Some insurers have shopfronts.
7. We have analysed each insurer on the basis of additional features and ease of purchase online, by phone and in person. The analysis is set out on this site.
8. Registration renewal and greenslips are available on a 6 or 12 month basis for many vehicle types. Information on vehicle types and on how to renew for 6 months is set out on this site.
9. Insurers will notify the RTA electronically when you purchase your greenslip. You should allow about 60 minutes for the notification to go through to the RTA.
10. Remember items 1-9 before applying for a greenslip.

Compulsory third party (CTP) Greenslips can be difficult and time consuming to acquire. There is often a considerable price variation between insurers for a CTP Green Slip in NSW, so it is worth the effort to undergo a greenslip Cost Comparison. It is also worth comparing additional features, accessibility and service of the green slip insurers.

The shadow side of a cardboard king

He may have been generous, charming and charismatic, but mogul Richard Pratt had a dark side. Michael Bachelard explores a world in which money bought everything – except honour.

Terrain Ignored: How the U.S. Lost the Vietnam War, Part 2 of 3

Question: How can you claim independent when under 24, not married, and no dependents of your own? Stupid Federal Law?

I am 21 and cannot get back into school as independent b/c under Federal Law you must be 24+, have a dependent, or be married to be independent. Well, what if your single parent just decides they don’t care if you go to college and won’t even give you their tax info? Even if I gave up their tax info then he gets a tax break for it! Makes me want to move out of the country…

Answer: I would recommend that you go to the financial aid office and explain to them your situation. Maybe they can work something out for you. Technically, at this point, the only way you could become an independent is if you get a financial override. This is override is only for people with certain circumstances, which is why you should talk to a financial aid officer. Otherwise you will remain a dependent.
Hope this helps!

More federal funds for R.I. comes with a catch

The state would have to liberalize its unemployment program which could be more costly in the long run

Anthony Perrelli and WGN News Discuss the Federal Stimulus Package Tax Blunder

IRA conversion can be fraught with pitfalls

BOSTON – As years go, 2010 is on course to be a blockbuster for retirement-account owners. Starting in January, all Americans who own a traditional IRA – not just those who have modified adjusted gross income under $100,000 – will be able to convert their accounts to a Roth IRA. But don’t rush for the doors. There’s plenty of problems waiting for those unaware of these mistakes to avoid:

Alex Jones TV: Pelosi: “Buy a $15,000 Policy or Go to Jail”