The Small Business Tax Help Blog

Posts Tagged ‘social security’

Tax Tips: Tax Refund Scams

Question: Can I establish credit under my EIN Or Tin Number?

Can I use my EIN Or Tin Number to establish credit instead of using my social security number? How do I go about doing so? reason being, my credit under my social security number is really bad and i am starting over.

Answer: You can establish credit under a corporate tax ID number but it will do nothing to restore your personal credit. It is not a wise move unless you are the company owner.

If you worked for me and I found out you’d established what amounts to personal credit with a corporate account – you’d have neither credit nor a job.

If your consumer credit is so bad – perhaps credit is not a good thing for you? Have you sought counseling?

Corporate ID theft is something that is CERTAINLY on the watchdog list – and ID fraud (which using corporate credit for personal means would be) is something you might want to consider.

So, of course you can.

But should you?

Grundeinkommen – ein Kulturimpuls

Press Statement: Minority Statement On 2011 Budget

Ladies and Gentlemen of the Press we thank you for giving us the opportunity to remind Ghanaians of what is in store for us in 2011 as implied by the Financial policies of the Government of Ghana for the fiscal year 2011 which was presented to the August house on 18th November, 2010.

Question: Senate Stimulus package – Social Security need to file taxes?

I just read this detail of the senate stimulus package:

Income Tax Rebate. Taxpayers will receive a payment of $500 ($1000 for married filing jointly) if the taxpayer files a tax return for the 2007 tax year as long as the taxpayer reports a tax liability of at least $1or $3000 in wages, net self-employment income, or social security benefits on his/her tax return. In
addition, an eligible tax filer will receive $300 for every child. The rebate is phased-out for single filers with more than $150,000 of adjusted gross income (AGI) and $300,000 for a married couple filing jointly. Individuals are able to count the social security income towards the $3000 threshold. In addition, veterans are able to count their disability income towards the $3000 threshold.

It sounds like people on social security will need to file? I ask because normally my dad doesn’t but I don’t want him to miss out on this rebate. Should he file this year just in case?

Answer: Yes have him file even if they decide not to pay us oldies.

Amid Tax Uncertainty, What’s Owner To Do?

Glastonbury tax planner John Evanich Jr. on steps all businesses should be taking now to prepare for their year end, to minimize their tax bill in a time of “tax uncertainty.”

The Self Employment Tax

Question: I started with a new employer after already hitting the social security maximum taxes. Must I start over?

Resigned from a job this year after I had already hit the social security maximum wages for the year. My new employer is telling me that these taxes start over with them and they must withhold the social security taxes again but that I can get the money back as a refund when I do my taxes. Is that accurate? Is this a law or should I push back with proof that I hit the maximum already?

Answer: The new employer is correct.

If you have more than one employer in 2009 and your combined earnings exceed $106,800 the combined withholding can exceed $6,621.60 as EACH employer is required to deduct 6.20% of earnings up to $106,800. You will get back any amount over $6,621.60 when you file your taxes as excess social security taxes.

There is an additional 1.45% for Medicare which has no cap on the amount of withholding.

Welcome to the world of bad tax law and interest free loans to our kind and loving gov’t.

New Laws Effective January 1, 2010

The following legislation will take effect beginning Jan. 1, 2010.

Ch. 3 Social Security Act