The Tax Preparation Blog

Posts Tagged ‘statistics’

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: Some say: There is no Income Tax Law, and the Federal Reserve is run by private bankers. What do you think?

If you care about your country and future, you must check this out… my main source…with links to other sources…

http://www.freedomtofascism.com/index.html

Answer: crap

Budget benefits for all

As you chair the proceedings of this august assembly, the image of my father late D A Rajapaksa who occupied your seat once as the Deputy Speaker comes into my mind.

IncomeTax IRS HOAX 2b.mov

Question: Question about Income Tax and Penalties?

My husband’s employer stopped taxing federal income taxes out of his paychecks a few months into 2009. When he inquired about it, they stated they were using a new chart because of the supposed stimulus that was to be thru paychecks. Well, now it’s tax time and he owes. We file seperately and have to due to a very old debt that takes any return of his, but usually he breaks pretty close to even at tax time. We owe $460 this year. While my return will have enough to pay this, my questions are:
1. I have heard of the underpayment penalty… will he be charged this if we pay on time, or has he already been charged this. If so, is there any way around it for this year?
2. I figured up that if they had held out as little as $10 more a paycheck, he would have broke about even ($10 x 52= $520). Is that correct, and is there a way to have them do this?
Thanks for any help!

Answer: You won’t owe any penalty for underwithholding – that doesn’t kick in until the amount owed on the return is $1000.

Yes you can request extra money to be taken out by filing a new W-4 with the extra amount on line 6. If he has “married” on his W-4 he should change it to “married, but withhold at the higher single rate” – if he does that, they’ll take out more, and that would probably fix the problem without requesting the extra to be taken out. Either way should work.

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This is a Backgrounder On Health Care

Abstract: In 2006, the Dutch government implemented a universal insurance mandate. Many American policymakers are looking to the Dutch experiment as a model to fix America’s complex and costly health care system.

Federal Income Withholding Tax Tables for 2009, 2010

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This is a Backgrounder On Education

Does Spending More on Education Improve Academic Achievement? Debates about how to improve public Education in America often focus on whether government should spend more on education.

Health Care 2009 – David Wilson, Myra Christopher, Elaine McIntosh

Question: Medical Expenses and Tax return?

When I was 18 I fell through a glass table and required stitches at the ER. My mom took me and I was in too much pain to fill out any forms so she filled out everything and put down that it was going on her insurance. When I turned 18 they took me off my mom’s insurance. Well some time afterwards I got a bill for $400 from the hospital. It’s in collections now because I don’t have the money to pay at the moment. Can I file for that on my taxes, or would it have to be payed for me to claim it?

Answer: Okay.

I like this one as you have to pay attention to your explanation to catch the twist.

For those who missed it, you mother filled out the hospital forms and thus the deduction if there were one would go to your mother.

Having been through many hospital experiences she was the one who accepted liability ofr the debt and not you.

Had you filled out the paperwork we might be talking about itemizing your medical expenses to capture this expense. You only asked if it could be done and not how to do it. It can not be done until you pay for it but once you pay for it, it can be deducted, but once again, only your mother can deduct it. The debt is not yours.

I know you are missing this fact but the hospital is seking money from the wrong person and they know that. they should be after your mother.

I hope this made sense.

Good Luck.

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IRS Details Plans for Tax Preparer Registration

A top Internal Revenue Service official outlined the agency s plans for Tax Preparer Registration and testing at the National Society of Accountants board of directors meeting.

i paint a bit to fast!!