The Small Business Tax Help Blog

Posts Tagged ‘income’

Basic Explanation of W-4 tax Form : Multiple Earners & Married Couples: W-4 Tax Form

Question: 2009 Tax filing question?

I have received one of my W2s from my employer and it states that I have 11524.04 in wages and tips etc. There is no federal income tax withheld though. Why is that? My social security wages are 1433.47 and my social security tax withheld is 714.49? Why so high? Medicare is same was wages and tips and other compensation and medicare tax withheld is 167.10. With this information and my other employers w2 that says wages and tips of 12189.91 and fed tax withheld is 321.35. social security wages are 1458.91 and social security tax withheld 752.70. medicare is 12189.91 and medicare tax is 157.94. Social security tips are 10731.00.

When i inputed this information it said i owe the government approx. 1000 dollars. But why did my first employer not withhold taxes for me? I claimed 2 on w4.

I also am a college student so is there any deductions?
I didnt receive and form such as that. Can you explain the make the work pay credit? And clarify what Sch M is?

Answer: Had you paid attention to your pay stub when you got paid, you would have notice that there was not federal taxes being withheld, and you could of made changes to your W4. Apparently claiming two on your W4 is too much that taxes were not need to be withheld.
So now you know you didn’t have enough taxes withheld. Visit IRS website www.irs.gov and use the withholding calculator and provided your employers the W4 so they can start withholding taxes.
If you can’t pay the $1K, then download the form 9465 Installment Agreement Request from the IRS website and mail to IRS at the appropriate address.

Woman Makes Plea Deal For ID Theft, Filing False IRS Claims

A Pickerington woman pleaded guilty Thursday to ID theft and making false claims to the IRS.

62% Top Tax Rate Coming? [NBC: 5-26-2011]

Question: When to start paying income tax on self-employment?

Obvious answer is Jan 31st and July 31st!

But if i started self employment on July 2007 am i correct in saying that i return tax forms in 2008 and start paying in Jan 2009 and July 2009 for the tax year 2007-2008

Cheers!!!

Answer: 2008 tax return will be issued in April 2008
You have until 31 January 2009 to file this return
Tax on your income for Year ended 5 April 2008……..that is your income from whatever source from 6 April 2007 to July 2007 and your income from self employment from July 2007 to 5 April 2008………..is payable on 31 January 2009.
If this amounts to more than £500 then you also have to make payments of tax on account for the 2008/09 tax year.
The payments on account for 2008/09 assume that your tax bill for that year will be the same as that for the year to 5 April 2008.
The 1st payment on account for 2008/09 is also due for payment on 31 January 2009.
The 2nd payment on account is due on 31 July 2009.
As an example:
If your tax for the year to 5 April 2008 amounted to say £4,000 then the payments of tax due would be:-
On 31 Jan 2009……….2007/08 tax……£4,000
Plus 1st payt on a/c for 2008/09………£2,000
Total payable 31 Jan 2009………………£6,000
On 31 July 2009 you would have to pay your second payt on a/c for 2008/09……..another £2,000.
The payments on account for 2008/09 are of course taken off your tax bill for 2008/09 and only any remaining balance would have to be paid on 31 Jan 2010 (along with a 1st payt on account for 2009/10)
Hope this helps.

Oswego, Fulton school board candidate profiles

OSWEGO CANDIDATES LYNDA SERENO School board election: Longtime educator aims for small classes, high academic standards

Schedule SE Self-Employment (Form 1040) Tax return preparation

Question: Where’s my tax cut President Obama?

Can anyone explain the difference between The Federal Withholding tax rate and the Personal Income Tax rate?

April 1st Obama reduced the Federal Withholding rate. Is that the same as a tax cut?
No one is answering the question.
What is the difference between a cut of the Federal Withholding Tax and a reduction of the Personal income tax rate?
For those of us who pay tax.
If there has been no reduction in the Personal Income Tax rate won’t you have to pay back the extra money you see in your pay check when you files your taxes?

Answer: WHERE MAH CHANGE FOOL!?

Schools’ short year burdens districts

This school year has been one of the shortest on record for the Eugene and Bethel school districts because of furlough days agreed to by employees last spring to balance the districts’ 2010-11 budgets. And if voters do not approve the city income tax for schools Tuesday and/or the Eugene …

Basic Explanation of W-4 tax Form : Personal Allowance Worksheet A thru D: W-4 Tax Form

Question: How much will I need to earn to get the EIC tax credit for the 2009 filing year?

I lost my job last year when I had my baby, and haven’t gotten back to work yet. Since I did work part of 2008, I was able to get a big amount back with some EIC credit or something, I think that’s what it was called. So now that my baby is older, I am back on the hunt for a new job. If I get one before the end of the year, how much would I need to earn to be elligible to get the EIC thing again… if it’s not called EIC, I am referring to the refund you get on your Federal Income taxes for having a Child. I just want to know if i will be able to get it again, and if so, how much for 1 child, if i start working between now and the end of the year. and how much do I need to make in income to be eligible?

Answer: The Child Care Credit and the Child Tax Credit are non-refundable credits. That means they cannot reduce your tax liability below zero (a refund).

The Earned Income Tax Credit (EITC or commonly called EIC) is a refundable tax credit. You cannot claim the credit if you are married and filing separate returns. You must have EARNED income; $1 minimum, maximum depends on filing status and number of children. You cannot have investment income over $2,950 (2008 amount).

This link is a checklist by the IRS to help you determine eligibility. The amount of the credit is dependent upon how much earned income you had.
The second link is the 2008 1040 instructions; the EIC Table is on page 56. Look up how much you expect to earn, slide over to filing status and number of children and that is your expected credit.

CorpBanca Announces First Quarter 2011 Financial Results and Conference Call on Tuesday, May 17, 2011

SANTIAGO, CHILE–(Marketwire – May 16, 2011) – CORPBANCA (NYSE: BCA), a Chilean financial institution offering a wide variety of corporate and retail financial products and services, today announced its financial results for the first quarter ended March 31, 2011. This report is based on unaudited consolidated financial statements and prepared in accordance with Chilean generally accepted …

EITC Qualifying Child Pt2 Income and Credit