The Small Business Tax Help Blog

Archive for May, 2008

Look Who’s Peeking at Your Paycheck

Starting in February, your incomeas estimated by credit bureausmay be used to help determine whether you get a new credit card.

Bovitz CPA PC.

Question: Economic Stimulus Package question regarding self employment?

Is anyone clear on where self employed individuals stand in terms of receiving a rebate check in regard to this new economic stimulus package? Am I correct in understanding that a small business owner would have needed to have had employees and paid payroll taxes to fund Social Security in order to qualify for this rebate program? I’m asking because I am self employed and operate a small retail business outside of the home (8+ years) but have no employees. Assuming my income range falls within the amount stated to qualify for this rebate program…do I qualify for the rebate as a self employed business owner even though I have no employees? I could not find an answer anywhere online. Thanks.

Answer: It is based on how much you personally made on you tax form. If you are paying expenses on a schedule C, then it is the gross income left over after expenses. There were supposed to be some tax cuts for business, but I am assuming LLC and corps.

What's in health care proposals for 5 Americans

As Congress gets closer to a final health care bill, many Americans want to know: What’s in it for me?

The Self Employment Tax

Question: losing earned income credit?!?

I am single and have 3 kids. My bf has 2 with his ex wife.
What i want to know is if we get married will i lose the earned income credit? And after we get married can we file married filing seperately? How does that work?

Ive got student loan debt and stuff that I REALLY need my income tax returns to help pay off. I can’t afford to lose it! But i do want to get married because he is wonderful. But do to past circumstances beyond our control we’re not exactly financially stable! please help!

((ill put it this way. i have a bachelors degree and where i live i still cant find a job starting out over minimum wage!!!!! and ive never been fired or had a criminal record or anything!))

Answer: Check out IRS Publication 596 (Are You Eligible for the Earned Income Credit), which you can download at www.irs.gov/pub/irs-pdf/p596.pdf .

If you file "married filing separately," then you cannot claim the Earned Income Credit.

But if you file "married filing jointly," then you can claim the Earned Income Credit.

Also, your and your husband's combined adjusted gross income must be less than $39,783 in 2007.

New Credit Card Laws Offer Mixed Blessing

Consumers Get Added Protections, but New Regulations Come with a Catch

Don't miss out on the Earned Income Credit

Question: Has anyone ever written off their state taxes on their federal return?

I always use H&R Block to file my federal return (online) and file my state via mail (by paper forms). I was trying to estimate my taxes for filing in 2009 (since I’m in a new income bracket this year), and all the H&R Block website had was the old calculator and it said you could write off your state income taxes… Here is a quote from the website:

“State and local taxes

Include any state and local tax you paid during 2007, including:

State and local income tax withheld from 2007 paychecks.

2006 state and local income tax you paid in 2007. For example, if you filed your 2006 state return in April 2007 and paid $500 in state tax when you filed the return, include the $500 here.

Estimated 2006 or 2007 state and local income taxes that you paid during 2007.

Real estate property tax.

Personal property tax, such as a vehicle tax or fee that is based on the value of your personal property.

Do not include estate tax.”

Answer: Yes, you can.
Of course, you must have enough deductions to be able to itemize.
The tax program should automatically pick up your withholding taxes, but you can add what you paid in as a balance due for the 2007 tax plus any Estimated Tax Payments you made in 2008,
Good luck.

Figure out tax credits, deductions - Wed, 27 Jan 2010 PST

WASHINGTON – The deep recession that hung over the nation in 2009 has led to new tax credits and deductions – attempts by Congress to boost consumer spending and get the economy moving again. These, along with increases in the standard deduction, personal exemption and alternative minimum tax exemption, may bring a little extra cash to some people during these economic hard times.

Question: How do I file an equal opportunity employment complaint?

Staff is fired at-will, staff inquiries about the clients safety is gone uncorrected. Denial of proper services for persons with disabilities. None compliance with State and Federal guidelines as it relates to the clients with disabilities living in an AFC home. No state, federal or city taxes withdrawn from employee pay and the checks are handwriting, so there is no income taxes filed by the employees. Detroit-Wayne County Community Mental Health Agency’s Office of Recipeint Rights has been contacted.

Answer: You can call your local EEO office, or you can actually do it online.

2010 Schedule Announcement: nCompliance Services

KANSAS CITY, MO--(Marketwire - 01/07/10) - nCompliance Services -- a national firm specializing in Form 1099, Form 1042, Sales and Use Tax, Payroll Tax and Employment law -- has released its 2010 class schedule . The schedule includes seminars on 1099 Reporting, 1042 Reporting, Advance Information Reporting Compliance, Payroll Tax, Sales and Use Taxes, Employment Law. Live seminars are offered ...

Pay News Network: National Payroll Week, Transportation Fringe Benefits, Tax Compliance Updates