The Tax Preparation Blog

Archive for August, 2009

Question: I made 19,800.00 last year. I am single without children, why do I owe taxes?

I just finished school last year and my net pay was 16,468.55. That is a barely-get-by-living-paycheck-to-paycheck income. Why would I owe both federal and state taxes? I have to pay for rent, bills, car, insurance, and student loans!! Please help me explain, or was the tax return estimation incorrect. I haven’t filed yet but I put my information into one of those calculators and that’s what they said….
Sincerely,

A Poor College Student in need of any type of tax return….

Answer: Most people pay taxes. How much your refunded isn’t based on whether you owe taxes, it’s based on whether you overpay your taxes through withholding. If you really want a refund at the end of the year then change your W-4 and have more withheld from your weekly check. That’s about the only way your going to see a refund.

J.K. Lasser’s Your Income Tax 2011: For Preparing Your 2010 Tax Return $19.95 America’s number one bestselling and most trusted tax guide offers the best balance of thoroughness, organization, and usability. For over half a century, more than 39 million Americans have turned to J.K. Lasser for easy-to-follow, expert advice and guidance on planning and filing their taxes. Written by a team of tax specialists, J.K. Lasser’s Your Income Tax 2011 includes all the outstanding f…

J.K. Lasser’s Your Income Tax 2010: For Preparing Your 2009 Tax Return $5.00 America’s number one bestselling tax guide offers the best balance of thoroughness, organization, and usabilityFor over half a century, more than 39 million Americans have turned to J.K. Lasser for easy-to-follow, expert advice and guidance on planning and filing their taxes. Written by a team of tax specialists, J.K. Lasser’s Your Income Tax 2010 includes all the outstanding features that have ma…

2009 tax law changes provide saving opportunities for nearly everyone

In 2009, numerous new and expanded deductions and credits came into being for a broad cross-section of taxpayers. Here is a summary of what they were.

2009, 2010 Federal Tax Withholding Info & Calculator

Question: IRS… is a frued and the income tax is un lawfull?

has anyone bothered to read the 16th admendment….
“The Congress shall have power to lay and collect taxes on incomes, from whatever source derived, without apportionment among the several States, and without regard to any census or enumeration”

it does not talk about who to tax and they do not defined the word income….
income is defined by a profit gain in a corpartation and does not oby by personal wages and transaction of work for pay… and the 1040 form is voulntary….
so if you can present me with a Law states we are forced to pay the irs let me knonw… the 16th amendment it not stating that…

and the irs and federal reserve bank is not part of the governmnet it is a privately owned bussinees and contracted by the government( not a government bussiness)…

oh yeah sorry for the spelling…

Answer: Sorry for the spelling and sorry for the logic and shopworn arguments that never worked to.

What part of 95 years of enforcement and total support by the courts don’t you understand?

How to File for Chapter 7 Bankruptcy $29.00 Bankruptcy laws are changing! If you’re going to file, do it now. Around the beginning of October 2005, a radical change in the bankruptcy laws will take effect, making Chapter 7 bankruptcy available to far fewer people. If you are pinned beneath an unmanageable debt burden, you should consider filing for bankruptcy now. Turn to How to File for Chapter 7 Bankruptcy to get the plain-English l…

Beacon Hill Roll Call

   THE HOUSE AND SENATE There were no roll call votes in the House or Senate last week. Beacon Hill Roll Call this week examines the 2009 salaries and other benefits received by the Bay State’s 160 state representatives.

Federal Income Tax – Why you should not pay

Question: Should severance pay count as employment earnings for Unemployment Claim?

I was laid off last November 2008 and from December 2008 to March 2009 I was receiving “severance pay” from the employer that laid me off. The California Unemployment Office first counted the $14,000+ of severance pay for that 4-month duration as income for the last quarter earning thus giving me a larger weekly claim.

They recently sent me an amended claim stating that the $14,000 will NOT count as income in the last quarter of 2008 thus reducing my weekly pay from $474 to only $370.

My question is shouldn’t that severance pay count towards my last quarter earnings? Does severance pay not count at all when calculating someone’s earnings? I am being taxed on it and at a very, very high rate (25%).

Thanks!

Answer: Dear S: Unfortunately it’s CA game and they make the rules. A double hit as the IRS taxes it and unemployment pay. This year ‘09 the first $2400 of unemployment pay is not taxed.

This advice was prepared based on our understanding of the tax law in effect at the time it was written as it applies to the facts that you provided. Click on my profile to read more. Errol Quinn Enrolled Agent

California City Eyes Tax Vote, Bond Freeze to Escape Bankruptcy

Dec. 30 (Bloomberg) — Vallejo, California , may increase taxes, freeze bond payments and cut deeper into spending to emerge from the biggest bankruptcy in the state since Orange County’s collapse in 1994.

First-Time Homebuyers Have The Edge | New Homes By Lennar

Question: what will be my tax liability if my income is Rs. 4.5 Lac/annum+ Rs. 50,000 from interest on FD.?

note: I invest Rs.1.5Lac/annum through a 15 years ULIP plan.
Plz show the calculation.

Answer: Treating you as male and age less then 65 years (AY:09-10)

4,50,000 is the annual income
0,50,000 is the bank fd interest
———–
5,00,000 is the total income
1,00,000 Less: ULIP. (Maximum deduction restricted to 1 lakh only)
———–
4,00,000 is the taxable income
=======

00,000 Tax on the first 1.5 lakhs (Tax free for male <65 years)
15,000 Tax on 1.5 lakhs @10% between 1.5 lakhs to 3 lakhs)
20,000 Tax on 1 lakh @20% between 3 lakhs to 4 lakhs)
----------
40,000 is the tax
01,200 is education cess @3% on Rs.40,000
---------
41,200 is the net tax payable
======

Income tax liability: Concepts and calculation (Tax management portfolios) …

Spansion Inc. Reports Third Quarter 2009 Results

SUNNYVALE, Calif., Dec. 31 /PRNewswire-FirstCall/ — Spansion Inc. today announced operating results for its quarter and nine months ended September 27, 2009. Spansion reported third quarter of 2009 n…

Tax Withholding Calculator | Liberty Tax Service

Question: Moving distribution to California from Boston, do I have to pay there tax rates?

I run a company out of Massachusetts and I’m looking to move operations to Los Angeles to reduce shipping charges from China to the U.S…

My only concern is the high taxes; 10.3% personal income, and a corporate tax (around 6.5% I think)…

If I’m just moving my distribution center and have corporate in Massachusetts, will I have to pay the 10.3% income and corporate tax in California? What other disadvantages might I have?

Answer: Assuming that you won’t personally work in CA, you won’t pay CA personal income taxes.

The corporate end gets a bit messier though. A better idea might be a corporate subsidiary in CA with closely controlled income and costs such that no taxable corporate income is generated in CA. You’ll still be stuck with the CA Franchise Fee (minimum of $800 per year) but if you structure it properly that should be the limit of your tax burden.

I’d strongly suggest a consult with a CA corp attorney and a CA tax pro such as a CPA or EA who specializes in corporate taxation in CA before you move on anything. Going in with advance knowledge and your eyes wide open will avoid any nasty surprises.

Another option that you might want to consider is to partner with a logistics firm in CA to manage your distribution for you. The cost of a partner may be much less than setting up your own distribution warehouse, dealing with cross-country payroll, and all of the other hassles.

One firm that I know of personally that has operations in CA (and a good track record with global experience to boot) is Menlo Logistics. This is not some fly-by-night operation but is part of one of the largest logistics management firms in the country — and one that is doing well during the economic downturn as well. Google them for more information or contact me through my profile for some contact information.

Estate & Trust Administration For Dummies $8.93 Executing an estate or a trust fund is a big responsibility. Estate & Trust Administration For Dummies contains advice for handling estates and trusts of any size. It offers solid pointers on reading and interpreting a will and other documents, and helping heirs avoid paying too much (or too little). It also shows you how to take care of a loved one’s estate in the event that a will or trust was …

Trends in the distribution of income and personal income tax burden for California taxpayers (Occasional paper series) Not much about Jane Austen’s personality can be gleaned from her works.It is from her letters, from the evidence of the friends and relations, and above all from a knowledge of the kind of life led and ideas held by the society she was born into, that we are to know her….

Area’s first residential ‘grid-tied’ photovoltaic solar energy system set

George Hering, left, and Tom Dersch stand in front of 22 photovoltaic solar modules south of Hering’s Bellmont residence.

DIZZY FEET Foundation Inaugural Celebration of Dance Nov 29, 2009