The Tax Preparation Blog

Question: Will it help ,if only 5% income tax is applied to all tax payers flat & all other taxes aborted?

Income Tax Sales tax department of India

Answer: good suggestion and also i think it will be viable

Crooks offer refund on online tax refund!

Public’s lack of awareness and technical sophistication of the cybercrooks has led to an increase in phishing attacks.

150 Years of Income Tax.wmv

Decoding India’s corruption wars

As Indian democracy deepens, power shifts will continue to happen and the middle class needs to accept that all such power shifts may not be in their favour, says Ajit Balakrishnan.

Question: What do I have to pay two different state taxes for 2009?

I work a full time job in PA, and a part time job in MD. When I went to do my taxes myself online it was telling me that I owe both MD and PA taxes for my state. How is this possible? Usually on my PA taxes I break even and don’t owe anything but this year I owe PA and MD? Is this correct?

Answer: If you work (or work and live) in two different states, you will file tax return in both the states. One state is your tax home. In the state that is not your tax home, report income you earned while in that state.

If you have received only one W2 from your employer, then use simple arithmetic based on number of days spent in the state to figure our the income that you should report to this state.

In the state that is your tax home, report your worldwide income for full year. Also in this state claim credit for the taxes paid to the other state.

States push harder for online sales tax collection

SAN FRANCISCO (AP) – Tax-free shopping is under threat for many online shoppers as states facing widening budget gaps increasingly pressure Amazon.com Inc. and other Internet retailers to start collecting sales taxes from their residents. Billions of dollars are at stake as a growing number of states look for ways to …

Trouble in Fall 2009? College Graduates can’t find Jobs; States Raising Taxes; Marriage Decline

Question: Paying Tax to apple.com in Georgia?

I live in Georgia and I found that I don’t have to pay tax to amazon.com, but I do for other online stores. Does anyone know if just because Apple is in California, I don’t have to pay tax, or if they have a store in Georgia I would have to pay tax.

Has anyone in Georgia ever purchased something from Apple?

Answer: Companies are required to charge sales tax in any state where they have a physical presence. One Apple Store in Georgia would require them under Georgia law to collect tax statewide. Amazon does not have a physical location in Georgia. Therefore, it does not charge Georgia sales tax.

Keep in mind that, though Amazon may not charge sales tax on your purchases, you are required to pay the tax directly to the state. It is called “Use Tax”. Look it up on the Georgia Dept. of Revenue’s website.

States push harder for online sales tax collection

SAN FRANCISCO – Tax-free shopping is under threat for many online shoppers as states facing widening budget gaps increasingly pressure Amazon.com Inc. and other Internet retailers to start collecting sales taxes from their residents.  Talk about this topic

California tax on Amazon on line purchases