The Tax Preparation Blog

Archive for May, 2010

Question: financial aid verification

i completed my 2008 fafsa with a different tax forms from what i reported with the irs.i filled head of household with the irs but used a different one,married filing seperate, for my fafsa. i did not understate my income even on the fake one. i was selected for verification and i am regretful i used the fake one. would i be found out? and what could happen?

Answer: Oh my goodness! That is fraud! and you can get into big trouble with that! If they do put one and one together they have to report you to the US department of education and you probably won’t be able to receive financial aid ever again. And what one earth made you do that? Honestly! And sometimes the US dept of Ed will make you pay back past years if they find out that you’ve done it more than once. And believe me it’s happened. Best case scenario is that the processor will just correct the errors that you made. These funds come from the federal government and they do NOT play games with it. You can’t even claim bankruptcy on your loans! That was not a smart thing that you did.

Tedbits: The Policies of Insolvency, part III

The greatest transfer of wealth from those who hold it in paper to those who don’t is underway; a Crack-up Boom looms.

Income Tax vs. Consumption Tax

Question: Collateral damage of the Health Care Bill…?

As a small business owner I was prepared for this bill to pass and have already started preparations to layoff parts of my workforce. This is roughly going to be, when all is said and done, about 30 employees of different levels (sales, management, support staff). Will higher unemployment numbers, foreclosures, and less state and federal taxes be an unexpected consequence of this bill?
Ed…interesting answer. So I should have asked will rising costs of products and services be an unexpected consequence?? (To protect my margin of course)

Answer: Not exactly unexpected but yes.
I placed an ad for a job on Friday to hire a few new people.
I came in this morning and he said ” Forget it, I don’t feel confident enough to hire anyone.”
We’ll just keep who we have and bust butt to get through.
Sorry, there were a few new jobs out there, but not any more……..

Coalition programme for business: Good news, holes and some surprises

The leaders of the coalition Government unveiled their full agreement yesterday in a document entitled The Coalition: Our Programme for Government. Has the coalition delivered the foundations for recovery or just a fudge?

Loose Change 9/11 documentary part 1

Question: I’m trying to determine/project my total federal taxes due for 2009 and adjust my withholdings accordingly.?

I’m trying to determine/project my total federal taxes due for 2009 and adjust my withholdings accordingly. Using the 2009 federal income tax rates (10% of income under $16,700, 15% of income over $16,700 and under $67,900, etc.), do I simply calculate the amount I owe and then subtract $400 due to the stimulus package tax cut?

Answer: Yes, but be sure to use the right table for your filing status. Looks like you’re using the married/joint return table – if so, then the MWP credit is $800.

Also, it’s on TAXABLE income so be sure to subtract your standard deduction and exemptions before calculating the tax.

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New Zealand Cuts Income Taxes to Encourage Saving, Curb Debt

New Zealand will raise sales tax for the first time in two decades and lower income taxes to encourage household saving, aiming to reduce the economy’s “vulnerability” to concerns about sovereign debt.

Alistair Darling kicks off his Budget speech Today 22nd April 2009

Question: If you walk into a room of 100 people, are you aware that 47 of them will pay NO federal income taxes?

“Rob thy Neighbor” – new democrat mantra?

WASHINGTON (AP) — Tax Day is a dreaded deadline for millions, but for nearly half of U.S. households it’s simply somebody else’s problem.

About 47 percent will pay no federal income taxes at all for 2009. Either their incomes were too low, or they qualified for enough credits, deductions and exemptions to eliminate their liability. That’s according to projections by the Tax Policy Center, a Washington research organization.

http://finance.yahoo.com/news/Nearly-half-of-US-households-apf-1105567323.html?x=0&.v=1

Answer: This is why I like you Idea of the National Sales Tax. At least the Food stampers and the
Social program blood suckers will kick in a little bit. Not much mind you, How much can
you get on pack of oreos and bottle of Pepsi. But at least its better than what they are doing
now.

New Jersey Millionaire Tax Passage Likely; Christie Veto Looms

New Jersey Democratic lawmakers are likely to approve an income-tax increase today for residents earning at least $1 million annually to help close a record budget gap in the second-wealthiest U.S. state. Governor Chris Christie has said he’ll veto the measure.

NBR | Tax Tip #9 Tax Year 2009 – Deadlines and Withholdings | PBS

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Just Energy Reports Fiscal 2010 Results

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