The Small Business Tax Help Blog

Posts Tagged ‘2008’

Question: i just received my SS# in 2009, can i file for 2006 and 2007 and 2008 taxes now that i have my ss#?

can i take all the appropriate credits (child tax credit and earned income credit) for those years even though i didn’t have a ss# then?

Answer: of course you can! Do not read all the answers that said no.
For those who think you can’t work without a social security number, need to go back to basics. There are people working IN THE USA for international companies and they need to file taxes here even if the international company is paying them. They come here for a period of time to work and do not have social security numbers! They don’t need one neither since they don’t live here. Second of all, if you worked illegally, with a fake social security number, you can still file taxes! You go to the IRS and get a Tax Id Number and file them that way. Or you wait until you have your real social security number and file up to 3 years back. You are entitled to ANY REFUND but of course, you wont get paid for retirement, EIC, etc. The government will do you the huge favor of keeping that money safe for you, in their pocket. Why do you think they haven’t come up with a law to avoid illegal working in the US?? (hope this helps, and go do your taxes! Money is waiting for your name in the IRS)

What happens if U.S. fails to reach debt deal by deadline?

Plus, Greece has been in crisis for 635 days. Now, PM sees next few days as ‘critical’

Rangel Helps Push The Earned Income Tax Credit

Question: Why do so many always complain about people on welfare when the amount of money that goes to them?

is trivial at best?

According to The Budget for Fiscal Year 2008, Historical Tables, total outlays for Means Tested Entitlements in 2006 were $354.3 billion. This was 2.7% of GDP and

Includes Medicaid, food stamps, family support assistance (AFDC), supplemental security income

(SSI), child nutrition programs, refundable portions of earned income tax credits (EITC and HITC) and child tax credit, welfare contingency fund, child care entitlement to States, temporary assistance to needy families, foster care and adoption assistance, State children’s health insurance and veterans pensions.

http://polecolaw.newsvine.com/_news/2008/01/08/1212663-how-much-does-welfare-cost

Answer: Because they are brainwashed into thinking these programs are far more than 2.7% of taxes paid and they are also not compassionate human beings.

Snyder’s Budget To Slash University Aid, Government Revenue Sharing

LANSING – The first shockwaves already are emanating from Gov. Rick Snyder’s expected budget proposal for the 2011-12 fiscal year with sources telling Gongwer News Service that Snyder plans a 15 percent cut in aid to public universities and a cut of about $200 million in revenue sharing to local governments.

The American Opportunity Tax Credit Student/Parent Forum

Question: section 179 – SUV write off?

Someone please correct me if im wrong anywhere in this example:

i earn 60,000 at work per year. My online business earns 0 this year, and 10,000 next year. Therefore 2008 total income = 60k, and 2009 = 70,000.
Half way through 2008, i decide to buy a yukon/tahoe Hybrid for $60,000, but decide to finance, so the payments from june thru december add up to $10,000. However, i can still use the section 179 deduction of 25,000 and the depreciation, therefore, a dedcution of about $32,000? (thats 25 + 7k) (60-25 = 35/5 yrs = 7k). And i am in the 25% tax bracket, thus i would recieve (.25*32k) $8k back?

in june 2009 i decide to sell car, but i only get 45k for it, do i have to show that as an income?
Or scenerio 2, i trade it in for 45, and get another 60k car. Can i use section 179 and depreciaion again on whole value of the car, or just on the 15k differance?

and final question, does all this work, if it was a lease instead?

Answer: The scenerio in your first paragraph seems correct.

For every dollar of depreciation you take (including 179), you have to reduce your basis in the car for when you sell it. So if you sell the car for $45K, you have a gain of $17K. ($45K less $28K, which is $60K less $32K) All $17K would be taxed at ordinary income rates, because you have to “recapture” any depreciation you take – since you got to take an ordinary deduction with your depreciation, you have to claim ordinary income for any gain you get as a result of depreciating the asset.

Using scenerio 2, you can opt to do a 1031 exchange (a “like-kind exchange”) for the car. This is usually tax advantageous, but gets a little more complicated. The amount of credit you get for the old car doesn’t matter. All that matters is the net “boot” you pay for the new car, which is basically the out-of-pocket expense you have to give up in addition to the car. So if give up the car and the dealer takes over a $5,000 loan balance you had in exchange for a new car and $20,000 cash, then your “boot” is $15,000. You must continue depreciating the original car as if you never traded it, and then depreciate the boot as a separate asset, that was purchased in the year of the trade. You cannot take 179 a second time.

As for the lease, this depends on what type of lease it is. If it is an operating lease, then you don’t depreciate the car at all. You simply write off your rent payments as an expense. If it’s a capital lease, then you would treat the asset as if you purchased it. Generally it’s an operating lease if it’s a short-term lease and you don’t have the option to buy the car at a discount at the end of the lease. It’s a capital lease if it’s a longer-term lease (most of the useful life of the car) and/or you have the option to buy it at a discount at the end of the lease. Of course, these are very general scenerios, and there are all kinds of weird rules that could change the answer.

I hope this helps. It may be worth sitting down with a CPA to go over which option would be best for you.

Hancock leaves unusual mayoral legacy

A s the new council begins regular business, it’s worth pausing to reflect on former mayor Mike Hancock’s record as he enters political retirement, and as Mayor Chris Friel -a very different Brantford phenomenon who brackets Hancock’s time in the chair -resumes his career in the city’s top [...]

Franklin County, Virginia – Business at Smith Mountain Lake

Question: Is this a correct estimate?

I haven’t filed taxes for 4 years. Myself & my daughter have both been claimed by my grandmother on her taxes. I’ve been a stay at home Mom so I haven’t had an actual job. I did under the table work this year and made about $3600. All un taxed. When I put this information in HR Block’s calculator it told me I would recieve a refund of $1,833. How is this possible? Is this right??? Wouldn’t I OWE some money since none of it was taxed? It says I would recieve $1233 Earned Income Credit & $600 Recovery Pay…Would this be right?

Answer: If you have earned income of 3600.00 you would owe 551 in self employment tax, get a credit for 50 percent of SS paid of it against your taxable income,have no tax liability after your standard deduction and 2 exemptions, have nothing withheld, not qualify for the child tax credit or additional child tax credit and have $1233 for an earned income credit. This means a refund of 682. In a nut shell.

Joblessness leaves a trail of woe

Kenneth and Phyllis Turner are out of work, out of benefits — and nearly out of hope.

2009, 2010 EIC Tax Table, Schedule

Question: Filed Taxes?

What happens if i used the earned income credit table on my taxes instead of the tax table to answer to question number 11 on the 1040EZ? Now I did get the amount of refund check that i put i was suppose to get? Now it was off by $54. Is this something I will be penalized with in the future or what?? Please I need an awswer that will be helpful! THANKS!

Answer: Wait two weeks then ammend your
return 1040X, with corrected tax amount.
If you already got the money, just save it
and they will bill you for it soon. They
have to send you a notice of change to
your return.

Survey Finds USDA Nutrition Education Program Improves Eating Habits of Low-Income Children

CookShop, a Program of the Food Bank For New York City, Prompts Healthy Food Choices at a Time When 43 Percent of NYC Public Elementary School Children Are Overweight/Obese, Teachers Say read more

Recovery Act Tax Benefits