The Small Business Tax Help Blog

Archive for April, 2008

Question: New Jersey Resident, New York Income – ?

My husband and I both live in New Jersey, but only worked in New York. I worked out the numbers on our tax returns, and it seems like we get 100% credit for the taxes paid to NY State. Therefore, we don’t owe any NJ state taxes. Does this seem right?

Also, do nonresidents of NY who earned income in NY get taxed at a lower rate than NY residents? My husband and I earned about $50k combined, and we only owe $1800 in NYS tax.

Answer: You would get a credit against your NJ taxes for the NY taxes you paid. Since the NY tax rates are higher than NJ, it should fully offset your NJ taxes, even though the way NJ calculates income taxes (using the gross income method) is different from how NY calculates income taxes.

There is no special tax rates for nonresidents of NY. Nonresidents and residents pay the same amount of tax for the same income.

State Bancorp, Inc. Reports Second Quarter 2010 Results

JERICHO, N.Y. -- State Bancorp, Inc. , parent company of State Bank of Long Island , today reported net income of $1.7 million, or $0.07 per diluted common share, for the second quarter of 2010 compared with net income of $1.1 million, or $0.04 per diluted common share, a year ago.

News ways to help low income men

Question: EIN vs TIN?

What is the difference between an EIN and a Federal Tax Identification Number? And do I have to apply for both?

Answer: An EIN is for a company. A TIN is a Taxpayer Identification Number, and could be an EIN, a social security number, or another kind of identification number. See http://www.irs.gov/businesses/small/international/article/0,,id=96696,00.html

Rewind: Eric D. Clark über Funkadelic

Es ist wie im Fernsehen, eine gute Serie verdient es, wiederholt zu werden. Seit Herbst 2009 befragt Finn Johannsen jeden Montag auf dem Sounds-Like-Me-Blog in seiner Kolumne “Rewind” Musiker, Designer, Journalisten und andere Kulturschaffende zu ihrer Lieblingsplatte.

Buffy vs Edward: Twilight Remixed -- [original version]

Question: Self Employed?? How do I file??

I cleaned an office for part of 2006 and all of 2007. I know I worked more than $600 worth in 2006, so I asked the office manager how I should file. (I got a check every week with NO paystub attached. She told me not to…”if you make under a certain amount…” etc. ) WELL, I just got a 1099-MISC the other day for 2007 for $3060! I was never asked to fill out any information..again paid in checks only, no pay stub info at all. I know zero about self employment. (The 1099 box says “nonemployee.”) So, what do I pay?? A tax guy said I SHOULD have been given a W-9. I have no idea what that is. Online info is too vague, as I mentioned I know nada about SE Taxes. I also clean my church but they give me a W4 and W2. Anyone’s help would be appreciated. No rude comments, please…(also, I guess they got my SSN from my patient records, as I never gave them that for work purposes.)

Answer: you will need to use a schedule se, which is for self employment tax do determine your tax, also you will need a schedule c for profit or loss from business. filling out the w9 would have given you a tin, which would give your ''business'' a tin, used for tax purposes, which is mainly for business that have to pay estimated tax. the church gave you a w4 because they treated you as an employee. .

Job search and tax help available at Manchester Community Resource Center

It might not be a new service in town, but the Manchester area Community Resource Center (CRC) is still a viable option for those seeking help in their job search.

Question: Why is my check SMALLER with Obama’s Advanced earned income tax credit?

I work part-time and last year the required federal amount to be deducted from my check was $0. We just recieved a booklet from the IRS entitled “New Wage witholding and advance earned income credit payment tables” which shows that NOW the amount to be deducted is $10.90! For the other part-time office gal, her’s went from $10/week to $19!
I though this was supposed to HELP me not HURT me financially? I don’t understand-everyone else is getting more back in their paychecks each week and we’re getting less?

Answer: You must be reading the tables wrong or your employer changed from table to percentage method.

2008, single, 2 on W-4, withholding started at $195 a week.
2009, before changes, withholding started at $190 a week.
2009 after change, withholding starts at $280 a week.

Community Calendar

The Proviso Herald welcomes items for the Community Calendar as well as for columns including Business Briefs, Campus s, Community Briefs, School Digest and smakers. Items must be received a minimum of 10 days prior to publication; earlier is better. E-mail to oakpark@pioneerlocal.com; fax to (708) 383-3678; or mail to Pioneer Press, 1010 Lake St., Suite 104, Oak Park ...

Question: Home Business & Quarterly Tax Questions-How to I file?

Please do not send the IRS links-I’ve searched these already. I’d like personal advice.

Info: I’ve been a home maker for the past three years with no income, and a dependant of my husband’s. We file jointly, with three children, once a year (JAN). So, we’ve obviously adopted the Calendar Tax Year.

I worked two months this year as a substitute, had a baby and begin a family home day care in April. I have not profited from this business, yet. I’ve put back half for taxes and invested the rest into supplies and groceries. Would this be a short tax year (Apr-Dec)?
I assumed I needed to file quarterly as a small business or self-employed. After reading more IRS publications, it looks like I have to maintain my same tax calendar as last year. Now, I’m confused. Can anyone explain, without complicated IRS articles? I’d like to avoid penalties before June 15.

Answer: What the IRS likes for you to do if you are self-employed is pay Estimated Tax Payments. I think the next one is due in Sept. If you have not made a profit yet then don't worry about it. If you make a profit before the end of the year then file the 4th estimated payment form, which is due in Jan '09. Since this is your first year in this business then even if you owe taxes they shouldn't charge you interest & penalties. Of course, they are the IRS and they will do whatever they want. When you file your taxes next year, for year 2008, you'll file a Sch. C and a Sch. SE. It's the SE that hurts. You have to pay 15.3% of 92.35% of your net income from the Sch. C. So, even if you don't think you'll owe tax you might owe from the Sch. SE. If you make less than $400 then you don't have to file SE. You can subtract half of the SE on the front of the form 1040. Be sure to keep receipts from any expenses you have for your business so you can write them off your taxes. If you drive places for your business you can deduct mileage. For 2008 it's 50 1/2 cents per mile. You'll still be filing on a calendar year even though you started the business in April. There's a box on the Sch. C that you check if you just started the business that year. If you think you will owe taxes to the IRS then you will probably owe to your state also, so check into making estimated payments to them. Here's a link to the estimated tax form for the IRS. http://www.irs.gov/pub/irs-pdf/f1040es.pdf There's a worksheet where you can try to figure out if you will owe taxes and there are payment vouchers you'll use if you decide to pay estimated payments. If you haven't made a profit yet then you should be fine but if you start making a profit as it gets closer to the end of the year then make the 4th estimated payment.

Business Calendar: February 21

When: 8 a.m.-5 p.m. Feb. 21. Where: Stegall Marketing Institute, 7505 Pines Road, Suite 1285, Shreveport. Featuring: A 40-hour pre-licensing class presented by Stegall Marketing Institute; required by the Louisiana Insurance Commission.

QualityStocks Daily Video 03/01/2007