Taxes and Tax Preparation
Levies imposed by the government on individuals or organizations such as income taxes, sales taxes, property taxes, and capital gains taxes
How long does it take to get a tax refund if you efile?
Between 8-15 days if you select direct deposit into a bank account or about 4 weeks if you choose to receive an IRS check. It will be faster if you select a bank product from a tax service firm, however these tend to be extremely expensive and you will have to have decent credit to qualify. You can also get advances on your refund but will have to pay fees.
Do elderly pay taxes on lottery winnings?
Refund Where is your stimulus Payment?
Starting Thursday, millions of grandparents and retirees will see a $250 raise to their usual Social Security funds. The months long wait for stimulus payments for seniors, as part of the stimulus bill passed February, is now over, CNN reports. Nearly 55 million seniors and retirees will receive the $250 one-time payment between now and June 4, 2009. Most of the checks have been sent out this week. (May 11, 2009). Payment will either be received as a separate check, in addition to Social Security payments, or appear in accounts as a direct deposit.
Asked in Taxes and Tax Preparation, Income Taxes
Is a live in girlfriend a tax deduction?
This is a qualified Yes (with some exceptions). They are an exemption as a dependent, but not someone you can claim dependent care expenses unless they are disabled. You can claim educational expenses you paid for this person. The new tax laws allow it if they meet the residency requirement (lives there 365 days a year), make less than $3500, and the relationship doesn't violate local law. It's good that in tough economic times, people can support others even if not related. For instance, if your girlfriend Judy lived with you for a full year while she finished an associate's degree, and you paid for her associate's degree tuition, then you can deduct those educated expenses. Unfortunately, there is much confusion and many people have been given inaccurate information about this because they are used to older pre-2005 tax laws (in fact, this article inaccurately said it wasn't deductible until 3/2009). Additionally, even some tax software has not been updated to this tax law. Therefore, it's highly recommended you consult the IRS or an accountant and review publication 501, section "Qualifying Relative". Below are some select parts of the tax law: == There are four tests that must be met for a person to be your qualifying relative. The four tests are: # Not a qualifying child test, # Member of household or relationship test, # Gross income test, and # Support test. Tests To Be a Qualifying Relative # The person cannot be your qualifying child or the qualifying child of any other taxpayer. # The person either (a) must be related to you in one of the ways listed under Relatives who do not have to live with you, or (b) must live with you all year as a member of your household2 (and your relationship must not violate local law). # The person's gross income for the year must be less than $3,500.3 # You must provide more than half of the person's total support for the year.4 == To meet this test, a person must either: # Live with you all year as a member of your household, or # Be related to you in one of the ways listed under Relatives who do not have to live with you. If at any time during the year the person was your spouse, that person cannot be your qualifying relative. However, see Personal Exemptions, earlier. More info: Publication 501: Qualifying Relative ( http://www.irs.gov/publications/p501/ar02.html#en_US_publink100041887 )
What are the salary income tax rates for Egypt for 2010?
What happens if you forget to file your state income taxes?
If you do NOT get it filed to your state it possible that you will be receiving a bill form the state tax department at some time in the future with the amount if any of past due taxes plus the penalties and interest that will be due when your do receive the bill it could be 2 or 3 years or less than that before you get the bill from the state.
Why is self employment tax so high?
Is a huge benefit. Self employment tax is your social security and medicare. If you were not self employed you pay only your portion. Now you must pay yours and your employers portion since you are your own employer. The employers portion is also treated as a deduction on page 1 of the 1040 so you get a little break.
How does deed in lieu work?
The deed in lieu is pretty straightforward. In short, it means that the mortgage creditor will accept the deed of the house in lieu of payment when the debt owner is no longer able to pay upon the debt. When this happens, the home owner surrenders the property and moves out saving the mortgage creditor the lengthy time and legal trouble of taking an legal action upon the home owner to remove the home owner from the premises, enabling the creditor to recover the debt owed. Usually this is to the benefit of the home owner in situations where the housing market is depressed, there are many foreclosures on the market preventing the usual sale of the home, and the amount of equity in the house is not worth keeping the house, and/or selling the house under normal market circumstances. If you have a second mortgage, you should also consider that that debt is yours because the mortgage creditor is only concerned about the first mortgage, and not any subsequent mortgages taken against the home.
Asked in Taxes and Tax Preparation, Bankruptcy Law
Do you pay taxes on debt discharged in bankruptcy?
Not always. There are some exceptions. The most common situations when cancellation of debt income is not taxable involve: Qualified principal residence indebtedness: This is the exception created by the Mortgage Debt Relief Act of 2007 and applies to most homeowners. Bankruptcy: Debts discharged through bankruptcy are not considered taxable income. Insolvency: If you are insolvent when the debt is cancelled, some or all of the cancelled debt may not be taxable to you. You are insolvent when your total debts are more than the fair market value of your total assets. Certain farm debts: If you incurred the debt directly in operation of a farm, more than half your income from the prior three years was from farming, and the loan was owed to a person or agency regularly engaged in lending, your cancelled debt is generally not considered taxable income. Non-recourse loans: A non-recourse loan is a loan for which the lender's only remedy in case of default is to repossess the property being financed or used as collateral. That is, the lender cannot pursue you personally in case of default. Forgiveness of a non-recourse loan resulting from a foreclosure does not result in cancellation of debt income. However, it may result in other tax consequences.
How do you journalize a sales tax payable?
Since you are using a "payable" account we do "not" touch cash until the actual payment is made. We however still know we need a debit and a credit for this transcation. To put this in our journal we will Debit Sales Tax Expense (check your company for exact account name) Credit Sales Tax Payable (again check your company for account name) Once you pay your taxes then you have to adjust these entries to reflect payment. In order to do that, we again use two accounts, this time however we do not touch Sales Tax Expense, it must stay there until we close our out books, we do however have to show that the payable has now become paid and that we no longer have that amount of cash on hand. This transaction will be adjusted in the journal as Debit Sales Tax Payable (to zero out this account or adjust it accordingly) Credit Cash (to show we no longer have that amount of cash on hand)
Can you include utilities bill for your income tax?
Owe federal tax 10000 what doi owe with reductions?
There was a mistake on my last years return. The IRS says we owe $3600+. We are living on my husband's disability social security and have a son in college. I am still unemployed after being laid off over three years ago. Is there any way to get this reduce? Your obviously confused (saying you owe 10K and then saying its a third of that, with even with any penalty and interest is not going to be near 10K). The absolute first thing is to see if you understand why they say you owe any money at all. They may be wrong (for any number of reasons) including just how the return was prepared or their own system. Then especially if it turns out you made a mistake you can see (adding 2+2 =3 for example) and you didn't have the return done by someone else who can explain and respond for you, to appreciate that you may be dealing in an arena that you aren't equipped to, and get some help. Under the basic scenario given for your position, you should have had no, or a very modest at most, tax to begin with. Maybe you have a refund coming. If the situation is that you improperly filed and do owe tax, the most likely result is you will need to pay it but the Penalty that was automatically applied would be abated, but the tax and interest (at a lower rate) would be due. An installment option would be made available. The pro you want probably has the designation of an E.A. (an enrolled agent) - better and cheaper than a CPA for tax.
Asked in Taxes and Tax Preparation, Income Taxes
Whether unrecognized tax benefits is a tax portion?
An unrecognized tax benefit is the difference between the tax benefit reflected on the income tax return and the amount of the benefit recorded on the financial statements. Example: taxpayer deducts $100 on its return but believes that a $60 deduction will be the most likely outcome in a negotiated resolution with the IRS on audit. The $40 difference is the unrecognized tax benefit.
Can you file income taxes if you are a student?
"Can you?" or "Must you?" The answer to "can you?": Many people will file an income tax return even though the income on the return was below the filing requirement. Even if you do not have to file a return, you should file one to get a refund of any Federal Income Tax withheld. The answer to "must you": This depends upon how much income you had during the tax year (both from a job and/or from investments) and whether or not your parents claim you as a dependent. Online tax software can help you determine whether or not you are required to file a tax return. See "Sources and Related Links" below for links to additional information about two online options for filing income taxes.
How can taxes be shifted backward?
You can either income average over multiple years ( which is best utilized if you have large swings in income from consecutive years.) or you can apply Net Operating Losses forward or backward with the Form 1065 to reduce your taxes in a certain year. You can only do this if you had a net operating loss in one or more years. Sorry, income averaging hasn't been available for about 20 years. You may be confused with how Net Operating Losses work and obviously, they would NOT be available to an individual.
Do you claim a timeshare as an asset?
Yes suggested revision In some ways, it is an asset. It can provide the owner a great location to relax and have fu during vacation week. However, it has a corresponding liability. The owner must pay the increasing maintenance fees. In all ways the property, like your house or a car or your airplane or jewelry is an asset. And for the filing of bankruptcy, it is most certainly an asset. Yes the debt is a liability. and yes the debt may be secured to an asset, but it does not change that the asset is an asset, or even the gross value of that asset. Agreeably, the "net equity in the asset" may be small or even negative. Nonethless, as bankruptcy process can use assets to satisfy debts and even, or especially, discharge the debt (liability) and use the asset to pay off others, that is how it should be reported. And really, I cannot think of any other way, anyplace, that it would be different. (Once again...your million dollar house is a million dollar asset. The loan on it of 2 million is a debt/liability. You may have no equity...you may owe more than it s worth. BUT, the house is worth that million, regardless of if it has a loan attached to it, or not. YOUR costs of ownership, maintenance and such, may make it a bad investment, and nothing worth owning, but it is still an asset. It is those other things, which are themselves liabilities, that make it less valuable to you. Consider, if the timeshare has no loan secured by it, (the future maintenaince fees or possible appreciation is not really a consideration, and the debt was instead made as an unsecured and personal loan, your bankruptcy/insolvency would be the exact same. Hard to sell, but worth something.) The current economic situation and the disadvantages brought about by owning a timeshare made this type of property more of a liability. Do not be fooled by those timeshare presentations that says it can be sold out or rent out easily. Well, some owners are really well-off and look for luxurious ways of vacationing. A timeshare might be for them and in a way they treat such property as an asset to achieve their dream vacation. But for those average vacationers who might think that a timeshare can yield a return of investment by selling it later, then, I totally disagree with that. Yes, it can be considered an asset since the term is you own a unit. In fact, you can also include your timeshare if you file for bankruptcy.