The Tax Preparation Blog

Posts Tagged ‘laws’

Question: tax return laws on two dependents with equally shared parenting?

I have two children and am in the middle of a divorce. We have equally shared custody. Do we split up i get one and he gets one or do they both go to the parent making more?

REFERENCES!! pleeease! lol
i know that if there is one child, and both parents have equal time with the child it goes to the one making more. But if there are two children do they both go to the same one or is it split up equally?

Answer: Dear CC: Make sure your divorce attorney is knowledgeable on tax laws and dependency. Spell out the custody arrangement in the divorce decree and if necessary split up the kids with each parent getting one.

Look at www.irs.gov and claiming a dependent. Also look at form 8332 for release of an exemption.

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

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10 overlooked tax breaks

Nobody wants to overpay the IRS. These often-forgotten breaks could lower your tax bill.

Federal IRS Inheritance Income Tax Return Laws & Rates 2010, 2011

Question: Sir,What is the tax treatment of salary withheld for not serving the company for full notice period.?

Say for example:
April -March – 12 months salary
Notice Period – 3 months
Notice Period not served – 2 months
so will the TDS deductible by company is for a period of (12- 2 = 10 months) or for 10 months only or
Salary received 10 months – 2 months salary withheld or paid back = 8 months
So will the taxable income is for 12 months/10 months/8 months and what is the section of the IT rule that deals with that.
Please reply immediately.
Regards,
Om

Answer: I assume you are talking about the tax laws in the U.S.

Your contractual agreement with the company does not affect your government taxation. Taxes are based on your expect annual rate of income. There are various rates of pay, called “Tax Brackets” that basically designated a certain percentage of the your expected tax liability. Typically, the more you make, the more you pay. However, tax deductions throughout the year are simply an estimate. They may not be your actual tax rate at the end of the year. At the end of the year, people who work in America, file a form 1040, 1040A, or 1040EZ with the government. The form they use helps them calculate what their actual pay was (gross pay minus any legitimate deductions), how much they contributed to their tax liability, and what their remaining liability or credit for the year might be. Considering that you worked only 10 months, your estimated taxes were probably calculated based on the anticipation that you were planning to work the entire year. Therefore, I would guess that you’ll be in a lower tax bracket than was orignally estimated and you should be due a return.

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Tax Tips – Tell me… “What is my TDS status if I have worked for two employers?”

The FairTax Book $3.20 Wouldn’t you love to abolish the IRS . . . Keep all the money in your paycheck . . . Pay taxes on what you spend, not what you earn . . . And eliminate all the fraud, hassle, and waste of our current system? Then the FairTax is for you. In the face of the outlandish American tax burden, talk-radio firebrand Neal Boortz and Congressman John Linder are leading the charge to phase out our curr…

This is a Center for Data Analysis Report On Taxes

Abstract: The Economic Freedom Act, proposed by Representative Jim Jordan, would terminate the ineffective Troubled Assets Relief Program (TARP), and substitute a proven way to stimulate the economy: tax relief—from permanent repeal of the capital gains and death taxes to significant reductions in payroll taxes and the top corporate tax rate.

1040A Federal Income Tax Form for 2010, 2011

Question: Do i need to pay 2011 Estimated Taxes quarterly ?

Need suggestion on this :
Me and my wife earnings are around 185K(after 401 K and Health Insurance).
Recently i filed Taxes and i owe $13500 federal to IRS.Also recently i received vouchers from IRS to pay 2011 estimated taxes quarterly.After seeing the IRS vouchers, we have fixed our W4s (as 0 (zero)allowances and married but withheld at single Higher rate).From next week pay stub i will receive correct pay check with enough tax deduction.

As per CPA my 2011 estimated taxes are $4000/quarter.
Since i already fixed W4,still do i need to pay 2011 estimated taxes quarterly ?
Your suggestion is very helpful for me.

Thanks in Advance
The correct Tax amount will be from this month,what about Jan and Feb months Taxes ?

I mean’t Jan and Feb months Federal Taxes which i paid are not enough.
Do i need to pay estimated taxes for these two months only ?

Answer: Merely setting your W-4s to 0 allowances and “Married but withhold at the higher Single rate” may not be enough at your income level. You should use the IRS withholding calculator here: http://www.irs.gov/individuals/article/0,,id=96196,00.html?portlet=4 to ensure that enough tax is withheld from your wages. If you do then you won’t need to make the quarterly estimated payments.

You can also run some number here: http://www.PayCheckCity.com to see what impact the W-4 changes will have and if they will be sufficient to cover your tax liability next year. Keep in mind that you are making the change nearly 1/4 of the way into the year so changing the W-4s alone may not be enough.

The problem is that the withholding tables are based upon a single-earner household and don’t work very well when either or both of you have income significantly higher than average.

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Gerlach pairs with Castle to give small business a boost

U.S. Rep. James Gerlach, Pa-6th, of West Pikeland has joined U.S. Rep. Mike Castle of Delaware in introducing legislation to provide a boost to small businesses and create jobs.

Federal IRS Inheritance Income Tax Return Laws & Rates 2010, 2011

Question: What rules govern monetary gifts to adult children?

I would like to give some money to my adult children. I will NOT have a taxable estate at the time of my death, Does gift tax still apply to amounts over $10,000? Does income tax apply?

Answer: You can give more than the minimum as long as you fill out the form for the IRS which credits this amount to your eventual “total estate”..

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Federal Income Taxes of Decedents, Estates and Trusts (23rd Edition) $58.00 Taxpayers die, but liability for their unpaid taxes remains. Someone must compute tax liability for the deceased taxpayer, file the decedent’s final income tax return, and pay the taxes (or claim refunds) due. At the death of the decedent, a separate taxable entity–the decedent’s estate–is created. The estate is liable for the tax on the income received during the period of its administration….

Shifting income among family members.: An article from: The Tax Adviser $5.95 This digital document is an article from The Tax Adviser, published by American Institute of CPA’s on March 1, 1992. The length of the article is 1501 words. The page length shown above is based on a typical 300-word page. The article is delivered in HTML format and is available in your Amazon.com Digital Locker immediately after purchase. You can view it with any web browser.From the supplier: Ta…

Personal Finance: Prince looking like more of a pauper

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Myth #1: There’s income tax on a gift over 13K