The Small Business Tax Help Blog

Archive for August, 2008

Question: what is the quickest and easiest way to start building business credit?

I started an online internet company in may 2007. So far we have built up several domain names, established and online and just got our EIN, federal tax id#, I need to know what the quickest way is to build business credit without using my personal fica score? Right now our business has no credit except for the net worth of our company, valajio networks!

Answer: The best way to establish credit is to ask the people you wish to establish credit with. Go to a bank and ask them. They'll probably advise you to borrow some money on a 90-day note. You may have to put something up for collateral, including cash in an escrow account.

Rätsel um Anschlag von Teheran

Die Ermordung eines iranischen Wissenschaftlers gibt weiter Rätsel auf. Nach bisherigen Angaben verließ der Mann heute früh in der Hauptstadt Teheran sein Haus, als davor ein Motorrad explodierte. Der Sprengsatz wurde ferngezündet. Der Ermordete war[...]

Kinderreporter: Politiker im Internet

Question: I want to claim my emergency tax back and need help?

I was taxed emergency tax and i want to claim it back, after much research (hm revenue dont make it easy for you) i have found that you have to send a letter and relevant tax documents to the tax office, but i had more than one job during this time which have different tax offices, does this matter, and will they send my documents back to me? Also i lost my p45 and have not yet recieved a p60 for last years employment

Answer: Contact the last Tax Office (your last Employers Tax Office) - detail all your jobs & relevant Tax Office references. Send documents but keep copies - they will return your documents but put that request in your letter just to make certain. You must send original documents - do you have a Tax Enquiry Office locally? If so go to them & they will copy everything for you & stamp it so that they can send it on. Have you completed a P50? this may help. You may not be entitled to a Tex Refund until after the end of the Tax Year 5/4/2010 unless you meet strict criteria.

Good Luck

MICHELLE SINGLETARY: Know the rules, rights this tax time

By MICHELLE SINGLETARY WASHINGTON | Most of us don't do our own tax returns. My husband did ours for years. He finally surrendered, too frustrated with the never-ending task of keeping up with the many changes to the tax code. We now pay a professional, and it is money well spent to pass on the aggravation to someone else.

Self Employment Tax Tips : Tax Tips for Home Office Use

Question: Regarding the new “Obama” payroll withholding amounts…………………………………………………?

…….the new payroll withholding tables have been out since Feb 09 with reductions to the withheld amounts. Has there been a corresponding tax reduction to the taxable amounts on an individuals income when they file form 1040? Or is it that the IRS will continue looking for the same amount of tax due, and the taxpayer will have less “saved up” to pay the tax liablility?

Answer: The tax liability has not changed. However, they've added the "making work pay" tax credit.

Since this is a refundable tax credit, it counts as a payment. This means it applies toward taxes owed and if there's anything left you get the difference as a refund.

Example, lets say they would normally withhold $2,000 from your paychecks, you'd normally have a tax liability of $1500 and get a $500 refund.

If your single you'll get the making work pay credit for $400. So they'll withhold $1600, your tax liability will still be $1500. However your total payments will be the $1600 you actually paid, plus the $400 tax credit (since refundable credits count as payments), so you'll get credit for making $2,000 worth of payments, and you'll get a $500 refund. The difference is that your paychecks were a little bigger all year.

Calling the IRS? Good luck

WASHINGTON — Need help with your taxes? Good luck reaching the IRS. Three out of 10 people who call the toll-free help line this tax season won’t get through to a human being — and that’s if the agency meets its goals for service.

Question: Can i ll file earned income credit -filing with unemployment compensation-i have a child but that has been my?

that has been my only income for the year.

Answer: Unemployment compensation is not earned income.

Top Scoops

On Feb 8 Scoop published my article Personal Income Tax Reform in New Zealand , which looks at taxes for individual New Zealand wage and salary earning tax residents.

Sample 1040-EZ for Hypothetical Taxpayer

Question: Tax season question: Why do they call it an ‘Earned Income Tax Credit’?

Seriously why? To me, it seems more like an “Unearned Handout From The Taxpayers”. I’m paying through the nose, but my deadbeat brother is getting this huge freakin’ check from the IRS…and he’s going to use it for…wait for it…a bumpin’ stereo for his POS car. And from what I can tell, he seems to be the rule rather than the exception. Help me out here…why the f*@k are we subsidizing this bullshit?
I do okay…I’m no Bill Gates, but we live a comfortable middle-class life. As far as my brother is concerned, he’s a loser and a deadbeat. I love him, but the truth is the truth. But thanks for your self righteous indignation Mr. Helper.
Good for you, michelle, but I still have to ask the question…why should the taxpayers subsidize your income? There is something inherently immoral in taking someone elses money and redistributing it to others. In essence it’s a vote buying scheme. Sorry, but that’s how I feel about it.

Answer: There are many individuals, legal and illegal, who are out for whatever they can get. They want to sit home and watch their cable TV (paid for by the taxpayers) drinking beer and eating chips. They are lazy and have learned how to work the system.

Earned Income tax Credit Could pay off

By answering some questions and providing basic income information, an IRS online program will help you determine your correct filing status, whether your children meet the credit's requirements, and will give you an estimated of the amount of credit you may receive.

Earned Income Tax Credit