The Small Business Tax Help Blog

Posts Tagged ‘tax’

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: Independent Contractor And Taxes?

I Know being an independent contractor that I do need to file taxes, question is, how do I go about doing this correctly?. If someone can give me a step by step process and a list of the forms I will need..it will be appreciated. I have used search engines to help answer some of my questions but their written very confusing.

TIA

Answer: 1040 and your 1099 form showing your income.

Listing of any tax payments you made.

www.irs.gov

Determining the Legal Status of Your Workers: Independent Contractor vs. Employee

Question: Why Not give Tax credits instead of Giving Bush Tax cuts?

Why Not give a 10,000 Tax credit To business who Hire New employees? In 2009 Obama set a 5k Tax credit to small businesses who hire new employees. Why Not scratch the Bush Tax cuts and just set up tax cut incentive? Corporate Profits are up 28% This Quarter, I know alot of that has to do with seasonal stuff, but Obviously there is no reason to hire more employees because the unemployment numbers would drop. So What’s the Catch? The Private Sector is not really Acting like the Bush Tax cuts are really helping the employment situation.

Answer: The CBO has already determined that a tax credit for hiring creates far more jobs per dollar spent than most other options, including tax cuts. As you point out, such a tax credit is already in existence. Expanding it might help but the real incentive to hire is to meet the increased demand for more goods and services. The demand does not appear to be there.

R&D Tax Credit and Small Businesses – 1

Question: SS4 form – fiscal tax year on March?

I wanna apply for for EIN for my company. If I’ll chose in SS4 closing month of calendar year 3/31, – do I must send to the IRS income tax report for few weeks!?

Answer: If your business fiscal year is from 4/1/07-3/31/08, your first required filing would be a 2007 tax return due 6/15/08.

Note that an S-Corp is required to have a 12/31 year end.

Question: Why does my tax return go down when I enter a second W-2?

I entered my first W-2 and my wages were 27.5k with 2.9k federal withheld. I got an estimated tax return and then entered my second W-2 ( I am a restaurant manager and got shifted temporarily) which made 2.9k with 350.00 federal withheld. Both federal amounts are roughly the same %, around 11, so why did my estimated return go from 650 to 500 after entering the second? Something similar happened to me last year.

Answer: Because your whole exemption and standard deduction were already taken out from the first W-2, so there was nothing left for the second one and it was ALL taxed.

The refund amount means nothing at all until all of your info is entered. It’s only what you would get if you didn’t have anything more to enter.

Rice and Curry (Black And Yellow Remix) Parody LOL (Indian Version)