The Tax Preparation Blog

Posts Tagged ‘income tax rates’

Question: Student loan interest deduction causing negative adjusted gross income?

Hi, I am in my 20’s and I’m a student first time filing my 2009 taxes. I worked one week, and earned 760. I paid 5000 in student loan interest and the IRS allows students to claim up to 2500 student loan interest deduction. So if i enter 2500, my adjusted gross income is -1740 (adjusted gross income) and my effective tax rate is 0%. If i leave out the student loan interest deduction, the effective tax rate is -7.76%. My federal tax refund is the same $186 whether i input my paid student loan interest or not. Should i take out or enter the student loan interest deduction? It doesn’t seem to look good to have a negative adjusted gross income. Any advice would be greatly appreciated. Thanks!

Also, is it better to choose Federal standard deduction or itemized deduction?

Answer: scholarships.onlinewebshop.net – it provides some tips about applying to US federal and state grants for college students.

Top tax questions for 2010

Questions about debt, starting businesses and multiple-generation households make it clear that the economy is shaping how people think about taxes.

IRS Gift Tax Limit for 2010, 2011

Question: How many of you would support tax rates like the ones in Australia, state your party.?

Tax rates 2010–11

Taxable income
Tax on this income

0 – $6,000 Nil

$6,001 – $37,000 15c for each $1 over $6,000

$37,001 – $80,000 $4,650 plus 30c for each $1 over $37,000

$80,001 – $180,000 $17,550 plus 37c for each $1 over $80,000

$180,001 and over $54,550 plus 45c for each $1 over $180,000

for those who love sources.

http://www.ato.gov.au/individuals/content.asp?doc=/content/12333.htm

(Bonus Question)

Do you consider Australia to be Socialist?
@ Malign Cast,

Most of Europe is Socialist. In fact, I’m having a hard time of thinking of one country in Europe that isn’t socialist.
@ Malign

Either you don’t know what socialism is, or you are misinformed. They are socialist. In fact they call them selves, Democratic Socialist.

Study them. Start with France, Denmark, Germany, etc.. which ever one you want.

Answer: Ok… I am an australian..

and to those that question progressive taxes… or to those that think progressive taxes aren’t fair… I have a Question that I wish to direct to you….

Lets take two people.. and for the ease of mathematics.. we will give them simple figures to work out …

Person one earns $10 per day
Person Two earns $100 per day.

A loaf of Bread costs $3.00
A quart of milk costs $2.00

So that ONE loaf of bread costs person one 30% of their daily income
the same loaf of bread costs person one 3% of their daily income

the quart of milk costs person one 20% of their daily income
the same quart of milk costs person two 2% of their daily wage…

If you reason that progressive taxes are unfair and unequal.. DO YOU ALSO think that it is unfair and unequal that people living on the lowest incomes are paying a higher percentage for the STAPLES OF LIFE ??

Yes they are also paying a higher % for non-staples.. BUT that’s another issue and I haven’t really got an issue with that… if you WANT something you have to pay for it..

SOME THINGS however you NEED and is it really fair that poor people actually pay a higher percentage for those things ?

THAT is why a progressive tax IS actually MORE equalising and more fair.. and It works..

trust me , I live here.

As for being socialistic.. well if you consider North Korea to be Democratic because it’s in it’s full title.. then off course we are socialistic…

BUT ….people still can come from nothing and become multi-millionares ….
it’s not socialism in the *DIRTY* sense of the word… BUT I don’t expect many americans to understand that.

Just Published: National Underwriter Offers Tax Advisors Expert Analysis of the Impact of the Recently Passed Tax …

Tax and insurance advisors looking for answers on how the new Tax Relief Act of 2010 will impact their clients are finding them in The National Underwriter Company’s just-published Selected Provisions and Analysis of the Tax Relief Act of 2010. Â The proprietary analysis is the only practitioners’ guide in Q&A format that answers the most critical questions asked by clients on insurance, estate …

State Unemployment Tax Rate 2010, 2011

Question: UK Emergency Budget announced…?

I am sure you have all heard about the emergency budget announced by George Osbourne, some of the things that he has introduced are:
VAT to rise 2.5% to 20% from January 2011
Deficit reduced 77% by spending cuts, 23% by tax rises
Departments face cuts of 25% over the next five years
Two-year pay freeze for public sector workers earning over £21,000
Child benefit frozen for three years and tax credits cut
Disability benefit claimants face new medical checks
Corporation tax cut from 28% to 24% over four years
Capital Gains Tax hiked to 28% for top-rate taxpayers
Bank levy from 2011, raising £2bn a year
Income tax threshold raised £1,000 to £7,495
Pension link to earnings restored or 2.5% rise from next April
Civil list frozen at £7.9m

Are you happy about the Budget and how is it going to affect you?

Answer: Tough but necessary, I’m glad they’ve restored the earnings link to pensions so pensioners can have some dignity, many of them don’t claim what they are entitled to because of all the ridiculous and intrusive form filling and we’ll all be old one day, Vat rise will mean a bit more restraint when spending, but it is a relief that we have a government that is trying to get a grip instead of fiddling while Rome burns like the last lot.

Top tips for Christmas giving

Two thirds of UK charities are now worried about their future income due to public-sector spending cuts and the increasing number of people that need their help, according to the Charities Aid Foundation …

Pre Budget Report | Part Two

Those numbing budget numbers mean something

One of the reasons federal spending has spiraled out of control in recent decades is that neither the public, nor the Congress, has any idea what the huge budget numbers really mean.

Question: On California taxes are capital gains taxed at a special rate like federal taxes, or are they taxed the same?

as normal wages? If they are taxed at a special rate, do I need to fill out a special form like the Schedule D Tax Worksheet? My capital gains are all federal capital gains. My capital gains are from a stock sale, mutual funds, and I have interest income from a savings account.

Answer: CA does not have a special tax rate for capital gains. They are taxed the same as other income. You do not have to fill out a tax worksheet.

You don’t need to fill out CA Schedule D unless your CA capital gains are different from your federal capital gains.

California’s Jerry Brown Inherits Schwarzenegger’s Struggle to Cut Deficit

California Governor-elect Jerry Brown faces the same dilemma over a widening budget gap that helped make his predecessor, Republican Arnold Schwarzenegger , one of the most unpopular state executives in 50 years.

Who Rules America? (Part 9)