The Small Business Tax Help Blog

Posts Tagged ‘Tax Withholding’

Tax websites you need to know about

While you may turn your pile of W-2 and 1099 over to your CPA every spring, when it comes to managing your personal finances the rest of the year, thinking about your income taxes is part of it. Whether you are calculating the tax impact of capital gains tax on an investment or investigating whether a request for a charitable contribution can truly be tax deductible — which may mean you can …

Tax Withholding Calculator | Liberty Tax Service

Question: Please help with multiple state taxes?

Can I do my taxes this year with TurboTax?

I have no questions with Federal tax – I think I can just file as I normally do, but I’m confused about state taxes. Here’s the deal:
I moved to TN from PA on January 2 and TN has been my resident state for the entire year. My employer continued to withhold PA taxes for 4 months. I worked in TX for those 4 months (no state tax). Then I worked in CA for three weeks – CA tax withheld. Then I worked remotely from TN for a client in CA for the rest of the year (no tax withheld). 2nd job had accounting software problem and withheld tax for MD (company based in MD, but I was in TN working remotely).

So, how do I file state taxes? My resident state has no income tax, 3 weeks in CA I paid taxes, paid tax in PA and MD, but was not physically in those states during that time.

Can TurboTax help me figure this out or do I need an accountant?

Answer: You can try it on your own but I wouldn’t.

In all my years of preparing tax returns (9), I have never seen an individual prepare a multi-state return correctly. Usually the Federal return is file and all of the state returns are a complete mess.

New Laws Effective January 1, 2010

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

Payroll Software 2010 withholding tax – http://payroll.breaktru.com

Question: Are taxes withheld and reported on W2 for employee stock options?

When exercising employee stock options, are taxes automatically withheld by the employer and reported on the w-2 so therefore no 1099-B needs to be filled out. It looks like I overreported withholding in 2005 according to the IRS and it appears because I doubled up the withholding for the stock exercise.

Thanks

Answer: Stock options don’t go on Form W-2. If you exercise an option and then sell the stock, a 1099 will be cut showing the proceeds. It’s up to you to keep track of the profit and file Schedule D to work out the taxes.

If you are given a negotiable option — one that can be sold on the open market — THAT would go on your W-2 as ordinary compensation. When you exercised the option it would be handled as any other option. That type of option is very rare indeed.

Special rules apply for restricted stock options. If you’ve been granted this type of option, consult with a tax pro.

Related Information

For the purpose of this list (which is deemed to be a “black-list”), the Brazilian tax authorities included the countries or dependencies that, according to the Brazilian Government, do not impose tax on income or, in which the applicable income tax rate is equivalent to any percentage varying between zero and 20% (maximum), as well as whose national legislation does not allow access to the …

Budget highlights for private companies – Deloitte Canada