The Tax Preparation Blog

Question: Do college students with kids and no job need to fill out income tax returns?

I am a returning college student. I am married and I have 2 children. In 2005 I decided to return to school after a life altering car accident. In 2006 I was a full time student and had no job. My wife did not have a job either. My question is: Did we have to fill out out an income tax form?

As you can probably tell I did not fill one out for 2006, but I was advised by a tax preparer that it was not necessary. I am here asking now, because I am not sure she was entirely correct.

Answer: If you had no “taxable income” in a given year it is not necessary to file a tax return. Sometimes it is difficult to determine what might be taxable income. If you had a large settlement for the accident that may not be taxable but the interest you have made on that settlement would be. I could list dozens of situations like this one. You really should see a tax professional and explain your circumstances. My office would not charge for such a service and I am sure you can find someone in your area that also will advise you without charge

5 Secrets From Tax Professionals

Save money at tax time by working harder all year long.

Tax Tips: Ask Your Tax Preparer to e-File

Question: In Canada how does Revenue Canada address a waiter’s tips? What are the dangers involved in declaring some?

I’ve been working as a server for many years now, and have never declared any of my tips in my tax returns. Most people I know in the industry claim something, but very little (usually a paltry amount representing 10-15% of their salary, which is NOWHERE near how much they actually get). That always seemed silly to me, so I decided years ago that I wouldn’t claim any, and hope not to have my name drawn from a hat for an audit.

I’ve heard that RC adheres to a general guideline that if you’re a server, 15% of your income comes from your tips – is this true? Also, if I start claiming now (within the above 15% amount, or more) will my profile get “flagged” and will they start looking into my past to get undeclared income from years past?

The reason I ask is I want to buy a house, and maximize my income (to raise my mortgage acceptance level) without getting into trouble.

Does anyone KNOW FOR SURE about these things? My house may depend on it.

Answer: If you are a waiter, waitress, hairdresser etc (any profession that makes tips) the government knows you make them. Make a claim at line 104 for tips. After a while, when seeing that you have worked as a serving person for a number of years and have not claimed tips, you will be audited. It could be a year, three years, five years down the road. They can audit anything up to 7 years back.
You will not be “flagged” now if you start claiming, but depending on how long you have not claimed, your name will come up soon for audit.
I can tell you, it will happen.
Start claiming those tips now.
If you are really concerned that they may go back and audit you on previous years and then you will have interest and penalty charges applied to any money owing, you can make a voluntary disclosure and state that you didn’t realize that you needed to claim the “paltry” tips you have been making and since this is the first year you have been making really good tips and are claiming it, you wanted to be upfront and claim the “piddly” amounts of tips from previous years.
The tips will be “low” amounts so it shouldn’t change much.

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Tax tips for seniors

You can get credit for turning 65 when you file your income tax; low-cost tax clinics available.

Tax Tips + FAQ | Deceased-Tax-Returns-Canada.com (Toronto Services)

Question: Thinking about applying to work for an accountant.?

Is there anything I need to consider to prevent myself being taken advantage of? I don’t want to become a scape goat. I have a couple of years of accounting course work in college, but no real practical work experience. As long as one is not a CPA nor a Licensed Agent, is there any legal repercussion that could befall a would be tax preparer, bookeeper etc, if e.g. he is asked to sign off on something he doesn’t quite understand etc?
edit: my point is this. I’d like to become an ‘apprentice’ of sorts, but I’m worried that some scrupleless individual might seize the opportunity to find the next “David Duncan”

Answer: well if you do not understand do not sign off!!!

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Majority of taxpayers hire a professional to file their returns

Make sure you have a trustworthy preparer Before turning your tax return over to someone else to handle, make sure you find an honest and competent preparer.

Barbara Cook TAX PREPARER LICENSING TIPS Franklin NC

Question: jobs related to accounting?

Please tell me the job titles related to accounting, for example, cost accountants or tax accountants.

Answer: Possible job titles are Financial Accountant, Management Accountant, Tax Accountant, Finance Manager, Finance Officer, Chief Finance Officer, Chief Accountant, Group Accountant, Regional Accountant, Controller, Property Accountant, Financial Analyst, Budget Analyst, etc. Those who work in audit firms will have titles used by those firms, like Audit Assistant, Audit Senior, Audit Manager, etc.

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Film industry tax incentives generated nearly 3,000 ‘indirect jobs’ in 2010, study finds

The debate over the sustainability of Michigan’s film industry tax incentives is heating up with the release of a study concluding that the incentives generated more “indirect jobs” than the film companies generated themselves…….

Tax Accounting Jobs

Question: How can i report someone that claimed my taxes w. out my authorization?

How can i report someone that claimed my taxes w. out my authorization? I am an illinois recident but while i was in california in 2006 I tried to claim my taxes for 2004 and 2005. I went to a local place where a close friend of mine works as a supervisor. I told her what i was there for and she looked a little lost. She had told me that one of my aunts had gone there and claimed my taxes w/ a dependent to get more money. My friend (Dalia) is a friend of the family as well so she asked my aunt if I had authorized her and my aunt told her yes. So she did it w. no problem… my aunt had all my W-2s because I use to live w. her while I was working. She’ve received it in the mail and thats how she got to claim my taxes for 2004. I’m very new at this. To be honest I didnt started working till the year of “04″ so I need the most of your help.

Answer: By all means Contact the IRS. They have a taxpayer advocate office that can assist you with your situation.

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Under IRS rule change, same-sex couples must split income and may get tax break

Many same-sex couples in California are getting a tax break this year from the IRS, according to new requirements to report their combined income on federal tax returns.

Rick Santelli Leads the Great American Tax Revolt!