The Small Business Tax Help Blog

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Big profits for smugglers of Tamil migrants: Toews

Public Safety Minister Vic Toews says that the nearly 500 Sri Lankan migrants who came to Canada last Friday aboard a rusty cargo ship paid as much as $50,000 apiece for the trip.

2010 Canadian Economy in Turmoil

Question: Why did my federal withholding decrease?

I’m doing my taxes this year, and when I’m done I realize I owe federal $2,500. Last year I owed only about $500. In reviewing both my wife’s and my W-2’s, I found that the federal withholding was significantly less for both of us than it was last year. Anybody know why that would be? Both my wife and I has similar incomes as the year before, well under $250,000. Does that mean I now have to calculate a penalty?
Same salary, didn’t change the w-4’s. Wierd, huh?

Answer: Because of the stimulus, last year beginning in April less taxes were being taken out of everybodys paychecks. Should have only added up to $400 per person, but if you had multiple jobs it could have been happening to every paycheck. That was a big fault in the program. Also, did you do anything with your W4’s? And yes, you’ll have to pay an underpayment of tax penalty. Won’t be too much though (definitely under $100).

And yes, you will pay a penalty. The second answerer doesn’t seem to think so but you will, because you didn’t pay enough taxes through out the year. Thats how it works. It goes on the second page of your form 1040.

Related Information

1.1.1. Income Tax Rate. The general statutory corporate income tax rate for entities incorporated in Argentina including branches or permanent establishments of foreign companies is 35%.

Former IRS Agent Acquitted of Tax Crimes

Question: If you pay cash for a home – a percentage of which is used regularly for business, how can that be expensed?

From what I understand, there are Michigan tax laws allowing deductions for renters and lendees, but what about those responsible people who have chosen not to live their lives in debt? Are they just out of luck?

Answer: strict IRS rules for home office use – you have to use one separate room or area that is NEVER used for anything else – whatever the square footage of that area is, is what portion of rent/mortgage/ utilities, etc you can deduct prorated by the months in a year -ex -1500 sq ft house – one bedroom is your office 150 sq feet. first year-started using i in July. 150/1500 = 10% x 6mos/12mos (50%) = 5% home office use – 10% in following years. separate business phone line would help too. This is for federal tax returns – probably similar for state returns. Renters are eligible also – for federal tax deduction

Lester Radke named Humanitarian of Year

He has touched the lives of children and adults with disabilities, abused children, uninsured sick people, those with cancer, even lost pets.

Senator Gretchen Whitmer on fixing the Michigan Business Tax

Question: is there a tax advantage to paying my wife formally from my business if she does not work otherwise?

Answer: just be careful if you have a ltd company as there is currently a case where the revenue are trying to treat the wifes income as her husbands and therefore taxing the additional income on the husband at 40%. as long as the wife is working in the company or business, you can pay her. even if she isnt a director or secretay of a company, she will be treated like a director as husband and wife are seen as the same. best take some professional advice from an accountant to avoid any problems and get it setup correctly.

Some affluent areas qualify for tax breaks intended to benefit the poor

Businesses can save up to $37,400 for hiring in an economically disadvantaged area. But those areas are designated based on large census tracts that don’t always reflect the intended demographic. Among the advantages for those who live in multimillion dollar houses on the hillside in Los Feliz are celebrity neighbors, sweeping views of the downtown skyline, the Griffith Observatory in their …

Diamond Holiday Online Home Business (Tax Advantages) – UPDATE

Question: When will someone who doesn’t pay taxes get caught?

I know someone who is a small-business owner and also works part-time in construction under the table. He makes about 60k a year but hasn’t paid taxes in 2 years. He brags about it and buys extravagant things that he charges on his cc and never pays the bills. It infuriates me because I am a small-business owner and STRUGGLE to pay my taxes but I always do! When or will he even get caught by the IRS? I hear if you make under a certain amount of money they don’t even bother auditing you?

Answer: Sorry to give bad news but unless his boss is giving a 1099 to the gov’t he will never get audited. There is no proof that he worked. The biggest misconception is that you have to file taxes. I know of people (strippers for example) that have not files taxes in over 10 years and they are also self-employed making over 60K. But once again there is no record of the money they made.

ezPaycheck, the Safer and Easier Way to Do Payroll

Los Angeles – Small business owners no longer have to toil for hours doing payroll by hand or stare in frustration at payroll software that is complicated and unwieldy.

Tax Tips & Information : How to Calculate Federal Income Tax to Pay to the IRS