The Tax Preparation Blog

Archive for the ‘Tax Rates’ Category

Question: At what percentage rate does the IRS use to deduct Medicare,Social Security and Federal Withholding Tax?

Answer: From your paycheck Social Security tax is withheld at 6.2% of the first $97,500 in wages for 2007 and the Medicare tax at 1.45% of all wages.

The federal tax withholding depends upon your status (Single or Married) and the number of allowances you claimed on W4. If you put more allowances on your W4, your employer will withhold less federal and state taxes from your pay check, but your social security and medicare deductions don’t change.

Now if you paid more federal taxes than your federal tax liability as per your return, then you will get a refund. If you paid less federal taxes than your federal tax liability as per your return, then you must pay additional taxes plus (may be) interest and penalty.

US economy grows; jobless rate stays high

WASHINGTON — The econ­omy grew a little faster over the summer than the government first thought. That modest pick­up wasn’t nearly enough to sig­nificantly lower the nation’s high unemployment rate, and the Federal Reserve doesn’t ex­pect the economy to improve much over the next couple of years.

Federal Unemployment Tax Rate 2010, 2011

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

Tax update: new state tax laws taking effect in 2009, 2011.(CA Tax): An article from: California CPA $9.95 This digital document is an article from California CPA, published by California Society of Certified Public Accountants on June 1, 2009. The length of the article is 1345 words. The page length shown above is based on a typical 300-word page. The article is delivered in HTML format and is available immediately after purchase. You can view it with any web browser.Citation DetailsTitle: Tax update:…

Signet Reports Third Quarter Profit

HAMILTON, BERMUDA–(Marketwire – 11/23/10) – Signet Jewelers Limited (“Signet”) (NYSE: SIG – News ) (LSE: SIG – News ), the world’s largest specialty retail jeweler, today announced its results for 13 weeks (“third quarter”) and 39 weeks (“year to date”) ended October 30, 2010. Third Quarter Highlights: — Same store sales: up 7.2%, US division up 9.7% — Income before income taxes: $12.0 …

California Joblessness Reaches 70-Year High

Question: FOR NRI, INCOME TAX RATES , RATE OF TDS FOR INTEREST AND ADVANCE TAX IN INDIA FOR ASSESSMENT YEAR 2010-2011?

I have to file income tax return as an individual for the first time in india as NRI.. I have only pension income, and bank interest.

Answer: In case you are out of India for 183 days or more during the year then there is no need to file Return of Income Tax.

In case you remained out of India for less than 183 days you need to file Return of Income Tax.

Income Tax rates will depend upon your total income, age and sex. However, it is 10%, 20% and 30% plus Cess etc.

Rate of TDS on Interest does not matter here as purely it is the responsibility of Tax Deductor i.e. who will pay you the interest. Whatever, the amount deducted is adjustable from your total tax liability.

For an individual the dates for making advance payments for AY 2010-11 was 15th Sept, 15th Dec and is 15th March. Again you have to take care that advance tax upto certain amount is not a must.

vkbajaj1950@yahoo.co.in

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Belden to Acquire Industrial Networking Technology Leader GarrettCom

Belden Inc. , a global leader in signal transmission solutions for mission critical applications, has entered into a definitive agreement to acquire GarrettCom, a leading provider of advanced industrial networking products and smart grid solutions. Â The acquisition extends Belden’s leadership position as an industrial networking solutions provider by adding a recognized leader in industrial …

Detailing the FY2011 Budget

Question: if u r married and you file taxes separately how does it work?

I m married and my mother in law wants her son(my husband) to file his taxes separately from my income taxes,does it mean our incomes are not community property?
Or there s something else behind this that i don’t know because i am italian and i don’t really know the us law about it.
What s my mother in law porpose???Thank you for answering and helping me to find out the truth…manola

Answer: by law, what you guys make after the date of marriage are considered joint owned property. so you don’t have to worry about that.
and you need to file as Married Filing Separately

Foreclosure brings a tax question

Q: I refinanced my home a few years ago and obtained a great interest rate loan.

Do People Married Filing Separately Claim The Same Things?

Question: Tax rate in Texas & California for H1B Visa?

Does anyone have idea about Tax in both states for h1b visa ? I really care about the actual income after tax.

How about 45k in Texas compared to one in Califonia (say, san franciso) with 55k ? About how much I could get after tax for each of them ?
Are the tax partially refundable in both state ? A state university professor in Texas (currently H1b) told me he got almost 90% of the total income after he requested a refund… would it possible because he is a professor ?

Answer: Federal tax is the same in both places:
6.2% social security
1.45% medicare
approximately 15% federal income tax
approximately 20-25% total.

California state income tax would be between $2000 and $3000. Texas has no state income tax.

You would have roughly $4000 more after taxes earning $55k in California than earning $45k in Texas. However, housing would cost several hundred dollars a month more in the San Francisco area than in Texas, so you would have less in the end with the California job.

Tax update: new state tax laws taking effect in 2009, 2011.(CA Tax): An article from: California CPA $9.95 This digital document is an article from California CPA, published by California Society of Certified Public Accountants on June 1, 2009. The length of the article is 1345 words. The page length shown above is based on a typical 300-word page. The article is delivered in HTML format and is available immediately after purchase. You can view it with any web browser.Citation DetailsTitle: Tax update:…

Bank income taxes and interest rate risk management (Finance working paper) …

The impact of the flat tax on California …

California to Sell $1 Billion Tax-Exempts as Issuance Plunges: Muni Credit

California , which sold more than $13 billion in municipal debt last week as yields jumped the most in more than 16 years, leads issuers with a $1 billion tax-exempt offering as sales recede to a two-month low.

Analysis: Texas outpaces California economically