The Tax Preparation Blog

Posts Tagged ‘tax’

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Question: How will inland revenue find out that i dont pay taxes on salary from abroad?

say i work for a company in Holland, but live and work in UK, where this company has no offices. i get gross salary transfered to my account and should pay taxes myself in UK. if i dont, what is the way it can be detected?

Answer: When the inland revenue receives the tax you pay on your bank account they will realise you have more income than you are admitting to. This happened to my brother in law who did a private job for £12,000 eighteen months later he got the fine of £20,000. Its up to you if you want to take the risk – even the small fish get fried.

Wife of disgraced Irish banker OKs sale of Chatham property

Water views, a brand-new privacy fence and a big back story are among the features of David Drumm’s home on Stage Neck Road.

Tax Accounting Manager

Question: claiming Zero on taxes?

I claimed 0 last year on my taxes. I work two seperate jobs. one job i made 36,000 and the federal witholdings were 3750. My other job I made 23,000 and federal witholdings were 3400. I have to owe quite a bit like over 2 grand when using the tax calculator. I thought claiming 0 would take the most taxes out. could this be because I am working two seperate jobs, what can I do to minimize my total? I live in california and am unmarried.

Answer: Withholding tables are set up assuming that there is only 1 job. In most cases, the first $ 8,000 or so of income will be tax-free due to the personal exemption and standard deduction. When you work multiple jobs, each job’s withholding table assumes they are the only job. The result is under-withholding.

You need to revise your w-4 and ask that an additional amount be withheld every paycheck for federal taxes, OR you must make quarterly estimated tax payments to the IRS throughout the year to “keep current”.

Fell free to call if you have any more questions.

Kim Normand
Normand Foster Tax Service
214-250-0575

Illinois’s Plan To ‘Balance’ The Budget: Borrow $15 Billion And Ignore $185 Billion Hole

The state of Illinois elected a Keynesian nutcase of epic magnitude in Governor Quinn. Quinn’s latest brainstorm is to borrow $15 billion to “stabilize things”.

Bankruptcy Lawyers Riverside CA Travis Law Firm

Question: I contracted as a limited company in the UK, now I have to file a personal tax return – help!!?

I contracted for 5 months (March 07 – July 07) and set myself up as a limited company to pay less tax. I used an accounting firm to sort this out for me. Now I have to file a tax return for the tax year 06/07 and I’m completely clueless as to how to do it. Do I include the limited company earnings? I assume it’s relatively straightforward for the months up to March when I started contracting, as I was in ‘normal’ employment up to then and have a P60 for the job I finished in February 06.

How do I disclose the income I earned from March 1 (date I started contracting) – April 5 (end of tax year)?

Answer: Hi,
The tax year in the uk runs from the 6th April to the 5th April the year after.

Therefore, for your 06-07 return, you will only be required to declare your earnings from when you started in March up until the 5th of April 2007.

Any income you earnt after that date would be declared in your tax return for 07-08 in a years time – and as you rightly said, your PAYE earnings will not be affected, the inland revenue will already have it on record that you were employed up until March.

If you use an accounting firm, they should be doing all the necessaries for you – all you will need to do is submit your receipts for any work-related expenses you have incurred.

Hope that helped – don’t forget that tax returns have to be filed by the end of January to avoid being fined!

Updated: Myanmar’s junta leaders “stupid” and “dumb”

In a latest diplomatic cables leaked by whistle-blowing site WikiLeaks, Singapore’s Minister Mentor Lee Kuan Yew was cited as calling Myanmar’s junta leaders “stupid and dense” and Taiwan’s former President Chen Shui Bian a “gambler” who was ready to “go for broke” on independence. The classified document relates to a confidential briefing on a 2007 conversation between Minister Mentor Lee Kuan …

Can I Claim A UK Tax Refund?

Question: If you are self employed and filing your taxes, how do you deduct one half of the self employment tax?

I have done a lot of research on self employment taxes, and have the following information from ehow.com: Instructions
STEP 1: Figure out your net income from self-employment. Net income is typically your total business receipts minus your total business deductions. STEP 2: Multiply your net income from self-employment by 0.9235 (or 92.35 percent). STEP 3: Multiply the amount of your net earnings that is $76,200 or less by 0.153 Add your two answers together. This is your self-employment tax. STEP 4: Report your self-employment tax on Schedule SE of the 1040. Tips & Warnings
You can deduct half of your self-employment tax in determining your adjusted gross income. Do this in the Adjustments section of the 1040.

My question is WHERE do I deduct the 1/2 of the self employment tax?

I will be working 40 hours a week at 8$ an hour. How can I figure out how much tax to take out of each pay check?

Answer: On the first page of the Form 1040 you enter 1/2 of the SE Tax computed from Schedule SE. For 2006 this is Line 27.

Here is the 2006 Form 1040:

http://www.irs.gov/pub/irs-pdf/f1040.pdf

I don’t understand the second question about working 40 hrs/week for $8/hr. That doesn’t sound like self-employment. If you are employed, fill out a W-4 at work. If you are self-employed, at this level of income, I would just settle up what you owe when you file your taxes and not send in estimated tax the first year you are in business.

The second year, if you anticipate owing tax in excess of $1,000 mail in quarterly estimated tax payments. You can print the vouchers at irs.gov.

10 tasty tax tips for 2011

Taxes can squeeze you financially, but these tips for 2011 will put some money in your pocket.

US Income Tax Form 1040 Overview

Question: Can i do my CA state taxes online for free?

I made very little this year and i was wondering if i could possibly get my state taxes done online for free?

Thanks everyone

Answer: Yes. Franchise Tax Board website has the providers participating free e-filing service.
Since you only have little incomqualifieduld be qualified for this service.

http://www.ftb.ca.gov/individuals/efile/allsoftware.shtml

Good luck

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2010, 2011 Tax Return Filing Online