The Small Business Tax Help Blog

Posts Tagged ‘tax’

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Question: Schedule C adding to tax return because of EITC?

This one’s for the tax experts.

In the past I had to pay taxes by reporting nonemployee compensation (line 7 of 1099-misc) on a schedule c and schedule se.

This year TaxSlayer and TaxAct are reporting that I do owe money, but will some receive more money than before by adding my self-employed income.

The only apparent difference between this year and last is that I have a daughter now and as so, I’m eligible for the Earned income tax credit.

Is it possible that the EITC or the Child Tax Credit is raising my return while still taking away medical, ss, etc?

Thanks

Answer: Aren’t daughters wonderful?

Yes, your EIC changed because of having a kid. You’re in a different collumn on that table now, one with numbers in it.

(Self-employment income qualifies as “earned income” for EIC purposes.)

The original purpose of the Earned Income Tax Credit was to defray the payment of FICA and medicare taxes for low-income workers. It used to be that you got the same % back as you paid in on your paycheck, but I think it was Clinton who raised the benefit so that you actually get back a higher rate.

Gavin Newsom PSA on the Importance of the Earned Income Tax Credit (EITC)

Question: I lost my job last June and since then I have only received ‘contribution based’ JSA for the maximum 182 days.?

My wife is now the only income provider and earns 14200k p.a. If our circumstances do not change as we move into the new tax year will she be entitled to working tax credits. My earnings prior to me to losing my job were approx 7000k for the 2008/2009 tax year. Any guidance and support in dealing with this would be greatly received. Thanks..

Answer: think they base there calculation on the p60 you should both have with earnings on it for that year,if you go on direct gov uk they have a tax credit calculator on it .should give you a rough idea of what you should be entitled to

Schauer Champions Tax Breaks for Struggling Workers

4-13-2011 Business Meeting

Question: Credit Card Merchant Accounts?

I recently submitted an application for a business credit card merchant account. It is an existing business with an existing merchant account with another company. This new provider wants me to give them my social security number even though the company has its own EIN/tax ID. Why would they want my social? Does this open me up to financial liabilities of the company? I know if they hard pull my credit information, this has a negative impact on my personal credit rating. The other option is to jump through hoops of sending several years tax returns and months of bank statements. What is the best course of action?
We have been in business for almost 7 years so it is not from lack of history.
This is not for a business credit card, it is for a merchant account to process credit cards.

Answer: When a merchant applies for a merchant account, there are a number of documents that he or she will have to submit. Whether your business is new or an existing one, the application process is the same.

As far as credit history is concerned, a review of the business’ financial performance will almost certainly be done during the application process. A typical request a card processing company will make is to see the business’ financial statements for the latest two years. The organization’s principals will also be scrutinized and they are usually required to provide their tax returns for the latest two years. If not satisfied by the information in the tax returns, the merchant services provider will pull their credit files. Either way, SSN must be provided. You need to understand that banks view a merchant account as a form of a line of credit and the application process is designed accordingly.

DATEVINTERACT Consultant Application for Microsoft Surface by designaffairs

Question: I did not file income tax return for the past 10 years?

I am an USA citizen (California resident). I moved to Taiwan 10 years ago to teach English. In the past 10 years, I file tax return in Taiwan, but I thought I don’t need to file tax return in USA and California. I earn approx. US$30,000 every year. Now I am applying green card for my wife. The embassy here ask me to file tax return for year 2005. My questions are:

1. Do I need to file income tax return (Fed and CA) for the past 10 years now?

2. Would I be penalized for not filing in the past?
3. Is private tutor income qualified for foreign earned income credit? If my students did not give me invoice, what kind of supporting document is needed?

Answer: I’d strongly suggest that you consult with a CPA or tax attorney. Among other things, you must file a timely return to claim the foreign earned income exclusion. You may well be penalized for late filing and payment of any taxes due. Those tax years are all still open and need to be closed. As I said, you need professional help and you need it quickly.

California tax tips – Earned Income Tax Credit