The Small Business Tax Help Blog

Archive for January, 2008

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Question: I get a W2 and claim 2 exemptions and my husband is self employed. How will this affect our taxes?

We are newly married this year. My husband has NOT paid any estimated taxes and obviously will owe penalties in addition to all the taxes. We are in a bind and rely on his “tax-free” income every month and can’t afford to pay in advance for 2008 on top of what we will owe for 2007. How do we get of this rut???

Answer: it wont "affect" your taxes.

you owe what you owe. you already made some choices that has affected how much you must pay.

now its just a matter of paying what you owe or getting a smaller refund.

i recomend you file MFJ because its got the most tax breaks and this way whatever HE owes will be taken from what YOU would have gotten back.

but yes, you still have the penalties to deal with. the irs will work with you if you call them.

Theft charge for Baldwin

MANSFIELD - Selectmen Chairwoman Ann Baldwin is facing charges she embezzled money from a former employer by inflating the hours she worked as an office manager and submitted false claims to the state to receive unemployment compensation.

Cap&Tax: The China-India Economic Stimulus Act of 2008 [1]

Question: What is personal income tax rate in california?

My friend told me it is about 18.5% for married. But I saw withholding tax is not more than 10% in most web pages. Can somebody explain me why? Are there other taxes?

Thanks.

Answer: If you look at Page 6 of the PDF linked below, you will see that the highest tax bracket for California individual income tax is 9.3%. It would not make sense to withhold more than that unless you are withholding extra to compensate for something (like self-employment income on the side that will generate extra taxes).

More on the Budget Deficit

I have decided to dig a little bit deeper in to the trends in revenues and outlays so far in this fiscal year.

013 2009Nov04b

Question: Is a LLC with less than 10 million dollar in assets required to file an extension?

If so, does it file Form 7004 (Application for Automatic 6-Month Extension of Time to File Certain Business Income Tax, Information, and Other Returns)

If this is not the right Form, which one?

Thanks in advance for your help!

Answer: If your LLC has elected to be taxed as a corporation or has more than one member (a partnership) you will file Form 7004. Make certain to check Form 1120 if your LLC is taxed as a corporation or Form 1065 if you are treated as a partnership.

If your LLC is a single member LLC who has not elected to be treated as a corporation than you would file it on your personal tax return on schedule C and you would use Form 4868 to get an extension on your personal return.

TROUBLESHOOTERS: Tax Preparer Complaint

Tax time is upon us, but one Newschannel 9 viewer says a local tax preparer never did the work she was hired to do and now she is no where to be found. She called on our Troubleshooter Team for help. Luis and Dolores Lopez are small business owners. When it came time to file their 2008 income taxes, they decided to go with someone they thought would be knowledgeable about new tax credits for ...

TV1 spin on harrassed IRD employee's protest car crash action, New Zealand Aug 2009