The Small Business Tax Help Blog

Posts Tagged ‘federal’

Question: What does anyone think about Obama wanting to put the Coal industries out of busniess?

Here is what Obama told Iowa public television last year (courtesy of Little Green Footballs): “I think it is important to send some price signals to change behavior. It’s not going to be painless. Power plants are going to have to adjust how they generate power. They will pass on those costs to consumers…. A lot of us who can afford it are going to pay more for a unit of electricity; over time the electricity bill goes back down as technology catches back up.”

Me: See, Obama’s little-discussed cap-and-trade plan would raise costs on businesses for using energy, like the entire coal industry—and they would then pass on those costs to you and me. Those “price signals” effectively are $100 billion a year in energy taxes, which would wipe out Obama’s middle-class tax cut/credit.

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Answer: It makes you wonder which industry is next to be destroyed by Obama. It’s not a good thing to hear from a presidential candidate.

(Golf Cart Dealers) (Green Business Opportunities) (Solar Golf Carts)!!

Question: Do right-winger know that redistribution of wealth was taking place in this country long before Obama came?

on the scene?

The Earned Income Tax Credit a Republican creation. It was enacted in 1975 under President Ford and expanded numerous times over the last 35 years. President Reagan expanded it in 1984 and 1986. President Bush expanded it against in 1990 and added supplemental credit for families with more than one child. President Clinton expanded it for childless claimants in 1993. President Bush expanded it again in 2001.

“About 45 percent of households will owe no federal income tax in 2010, according to our estimates. Half of them earn too little, while the other half — mostly middle- and lower-income households — will take advantage of tax credits such as the earned income credit, the child and child-care credits, the American Opportunity and Lifetime Learning credits, which help pay for college, and the saver’s credit, which subsidizes retirement saving.” ~The Tax Policy Center

Answer: I’m completely against our tax system. I think EVERYONE should pay with zero exemptions or deductions. The catch would be that we would have to completely do away with social programs. With the exception of education.

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Question: Quarterly tax payments for an independent contractor?

I just got done paying my 2010 taxes as an independent contractor (self employed). I have never done quarterly payments….this year I owed almost $4,000 in self employment taxes for federal and my state combined. I want to make quarterly payments for 2011, but I have already missed the first deadline….is it better to just pick up with the 2nd payment and make that, the 3rd and 4th payment on time, or not pay quarterly taxes at all? Usually I just pay in a lump sum at the end of the year…I was charged a slight penalty for 2010 but it wasn’t much at all. What should I do, continue with the quarterly payments or just skip it and get on track with them properly next year?

Answer: Neither. Make the first payment now. The penalty for being two weeks late is much less than the penalty for missing the payment completely.

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Question: Schedule C adding to tax return because of EITC?

This one’s for the tax experts.

In the past I had to pay taxes by reporting nonemployee compensation (line 7 of 1099-misc) on a schedule c and schedule se.

This year TaxSlayer and TaxAct are reporting that I do owe money, but will some receive more money than before by adding my self-employed income.

The only apparent difference between this year and last is that I have a daughter now and as so, I’m eligible for the Earned income tax credit.

Is it possible that the EITC or the Child Tax Credit is raising my return while still taking away medical, ss, etc?

Thanks

Answer: Aren’t daughters wonderful?

Yes, your EIC changed because of having a kid. You’re in a different collumn on that table now, one with numbers in it.

(Self-employment income qualifies as “earned income” for EIC purposes.)

The original purpose of the Earned Income Tax Credit was to defray the payment of FICA and medicare taxes for low-income workers. It used to be that you got the same % back as you paid in on your paycheck, but I think it was Clinton who raised the benefit so that you actually get back a higher rate.

Gavin Newsom PSA on the Importance of the Earned Income Tax Credit (EITC)

Question: I lost my job last June and since then I have only received ‘contribution based’ JSA for the maximum 182 days.?

My wife is now the only income provider and earns 14200k p.a. If our circumstances do not change as we move into the new tax year will she be entitled to working tax credits. My earnings prior to me to losing my job were approx 7000k for the 2008/2009 tax year. Any guidance and support in dealing with this would be greatly received. Thanks..

Answer: think they base there calculation on the p60 you should both have with earnings on it for that year,if you go on direct gov uk they have a tax credit calculator on it .should give you a rough idea of what you should be entitled to

Schauer Champions Tax Breaks for Struggling Workers