The Small Business Tax Help Blog

Posts Tagged ‘income’

Tax Deduction Tips : Social Security Tax Tips

Question: Where can I apply for a tax ID business credit card?

I just converted my DBA in to a LLC and need to build credit where can I apply for tax Identification credit cards ??

Answer: I know that this site has business cards. Of course they will require both your social security # and your tax ID # when you fill out the application. Once you get onto the site on the left hand side there are categories. Just go to “business” and you can browse multiple cards from different issuers. Compare the offers and see if any suit you. Good Luck!

http://morecreditoptions.NewCreditApplications.com

Community Economic Development Business Program

Question: Will I be taxed on this stipend? Is it considered income/tax deductible?

I got this description from a stipend letter, of which the stipend I will be receiving at the end of the summer. I was wondering if I will have to include this as part of my tax payments, because I don’t understand the description (below) completely. Keep in mind that the stipend is for more than $600.

“Fellowship payments (via the SU-21 form) to U.S. citizens, permanent residents, and residents for tax purposes are taxable to the recipient, but are not reported by [school name] on a tax document. [school name] does not withhold tax from these payments. We recommend that recipients make quarterly tax payments to the IRS and the State of California. Please see Form 1040ES at www.irs.gov and Form 540ES at www.ftb.ca.gov. A courtesy letter summarizing payments greater than $600 is mailed to recipients in January and should be used in year-end tax reporting. Your pay statement also contains year-to-date payment totals.”

Answer: They are advising you that your stipend is taxable and must be reported to the taxing authorities as income. There is no withholding so you may have to file a Schedule C or simply report it as other income not subject to self employment tax. Whatever way they report it to you such as a 1099misc you will need to put that as income on your 2010 tax forms. Consult someone at H & R Block at that time. In the meantime if you have legitimate expenses such as supplies, car expenses or books then that can be charged against your earnings.

Wikirebels

Question: Tax Cut Software Glitch warning?

There seems to be a temporary glitch in the H&R Block Tax Cut software until a fix occurs which is planned for Jan 31st. If you have federal withholding on Govt Payments 1099-G such as Unemployment Comp., the software may prevent you from e-filing unless your interest, pension, Soc Sec, or IRA income exceeds the withholding. If anyone using this software (and maybe other tax software vendors also), you may need to wait a few more weeks for a fix. The problem is blamed on a faulty IRS update & cannot be fixed until the next scheduled IRS update.

Answer: that’s correct per IRS waring in December.Congress screwed up by takeing all year to patch the AMT law.

Crisis is Not Behind Us

Question: I need to find out if I am withholding enough taxes. I make $63,000 a year,have a child and wife to claim. ?

I also have a mortgage with claimable interest. This is my first year in this tax bracket. About 25% of my pay goes to taxes. I pay MD state tax.

Answer: Go to www.irs.gov and click on the individual tab. There is a withholding calculator that can help you out a lot in determining what your refund/payment will be. You just need your last paycheck and a bit of other information. I have used it over the last few years and find it very helpful.

I put the whole link in the source area.

Investing & Personal Finance Tips : How to Calculate Salary After Taxes