The Small Business Tax Help Blog

Posts Tagged ‘service’

Question: How much do you get back for claiming a child on taxes?

Like on the earned income credit, what do you get back per child, in the state of Georgia. I know that you only get credit for two kids.

Answer: It depends on your total income, and on how much income you had from a job. Also whether you are married or not.

EIC can be $2 or it can be $4716, or something in between, so without more info, it’s impossible to answer your question.

Georgia has nothing to do with federal EIC – it’s the same in all states.

Anne Else (Child Poverty Action Group) at Do Something: Credit Crunched NZ

Question: Does an “investment club” type partnership have to pay for Self employment tax?

A regular partnership is required to pay both an income tax and a self employment tax on profits generated by the partnership at the federal level. What about an investment club type of partnership- where the only profit generated is purely from investments?

Answer: The income from the partnership flows to the partners in the same classification as it was generated. Unearned income is reflected as such on the K-1s and is taxed that way — no SE taxes are due.

Do make sure that your partnership agreement is iron clad on it’s purpose and how income will be generated within it. If any income other than unearned income is generated, it must be reflected as such on the K-1s and may be subject to SE taxes.

THE MAGIC OF THINKING MICRO: The Future of Enterprise Learning and Support in the UK?

These last weeks I’ve taken quite a lot of stick from the enterprise support community. First there was the launch of Start Up Britain (StartUpBritain) http://www.startupbritain.org/ criticised for being a sales pitch for the large corporates, and now they seem generally unhappy with the government backed mentorsme mentorsme http://www.mentorsme.co.uk …

LLC Nonwage Income Ch1

Question: the phrase cheap labor is it a myth, a farce and a lie?

there is no such thing as cheap labor.take for example, an illegal mexican who sneaks in here with his wife and five kids .he takes a job for 5 or 6 dollars an hour. at that wage with six dependents he pays no income tax, yet at the end of the year, gets an earned income credit of up to 3,200 free.he qualifies for section 8 housing and subsidized rent, food stamps and free no deductible, no co- pay health care.his kids get free breakfasts and lunches at school, and require bi- lingual teachers and books that we the tax payers provide.he doesnt have to worry about car ins, life ins or home owners ins. we the taxpayers provide spanish language signs, bulletins and printed material.he cannot be fired, harassed, or sued.he and his family receive the equivalent of $20 to $30 an hour in benifits .

Answer: WOW you sure got that right. I had thought making $4 an hour was bad, but, then, they don’t pay taxes, or FICa or Social Security, or medical insurance. WOW I realized after my deductions I make about $3.80 an hour
DAMM WET Backs get more than me.

Business news in brief

Biopharmaceutical maker Cephalon Inc. , Frazer, said Thursday that stockholders had approved the company’s proposed $6.8 billion acquisition by Teva Pharmaceutical Industries Ltd.

How to Complete a 1040EZ Tax Form : How to E-File a 1040EZ Tax Form

Heaps of New Arrivals at The Shop – March 2011

A WHOLE LIST OF NEW CDs AT THE SHOP!! order details below… ++++++++++++++++++++++++++ AFTER THE BOMBS – Relentless Onslaught CD – RM30 Canadian Crust of the monsterful kind; rather dense-heavy shit! Includes the Terminal Filth Stench Bastard EP! “At…

Loose Change 2nd Edition (Full Version + Multi Subtitles)

Question: Can I amend an Estate SS-4 from Calendar to Fiscal Year? How?

I am executor of my Dad’s estate. When first applying for the EIN, I made the estate a calendar year entity without realizing the tax consequences. I would have several more months before having to deal with tax issues if I could amend the SS-4 from calendar year to fiscal year reporting. Can a qualified YA member tell me how? I have searched the engines and the IRS.gov site.

No offense, but only those with qualifications to answer please. Thanks all.

Answer: You don’t need to ‘amend’ the SS-4, as it does not bind the estate to the tax year you chose. The only thing that binds the tax year is the actual filing of the first tax return (form 1041). This is true even if you’ve already filed an extension showing calendar year.

That said, the IRS does have in its computers that the estate is a calendar year, so will assume the return is late if it doesn’t receive anything by April 15. If you get a letter asking for a return, don’t worry. Just file the return for the year you want.

Note that the first tax year cannot be longer than 12 months. For example, the tax year for the estate of a person who died April 7, 2007 could end at the end of any month from April 2007 through March 2008.

One last thing, the above all refers to the INCOME tax returns of the estate. Generally, an estate tax return must be filed on Form 706 as well, if the estate had gross assets in excess of the applicable exclusion amount ($2,000,000 for 2007).

Lebanese intelligence agents kill 2 militants

Lebanese security forces killed two suspected Islamist militants Saturday, including the leader of an al-Qaida-inspired group that fought a bloody battle against Lebanon’s army in 2007, two Lebanese military officials…

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