The Tax Questions Blog

Archive for April, 2008

Question: Use the 1040EZ IF: "Your taxable interest was not over $1500.00" What does this mean!??!?!?!?!?!?!?!?!?!!!!!

What numbers on my W-2 are they looking for?
Box 2: Federal income tax?

Or 2, 4 and 6 which say, " federal income.., social security..., and medicare.. tax withheld"

Thanks so much

Answer: Taxable interest is from 1099 forms. I.e. interest on bank accounts. stock dividends. etc.

Downing: Its important to know rules on filing jobless benefits tax

Downing: Its important to know rules on filing jobless benefits tax

Question: Why are people's Cadillac health insurance plans not classified as income? Why is it not taxable as Income?

There is a health care proposal our there to tax Cadillac health care plans by companies to cover the cost of the current health care bill. I was wondering why it's not classified as income and why it's not taxable.

Not that I want it to be taxable, good grief, I am all for reducing taxes. But some law makers are saying it's a form of income and should be taxable, so I am wondering how could it be classified as income and not a benefit for ones welfare?

Answer: Govt. employees and unions are the main beneficiaries of this untaxed benefit. That'd be like taxing their supporters extra. Any other benefit that employees recieve is taxable, why not this one?

I'd bet the final bill doesn't tax democrat supporters extra. They'll tax EVERYONE by taxing business's and insurance companies, but keep giving tax free benefits to supporters. Wanna bet?

A View from Glen Hill: Healthcare reform strayed from its original intent

Health-care reform: the very words sound so good and so necessary.

Alex Jones Tv {Sunday Edition} 2/8:Pelosi "Buy a $15,000 Policy or Go to Jail"

Question: Am i eligible for gov. rebate, I filed a 1099 this year I earned over 5,000?

Am i eligible for gov. rebateI filed a 1099 this year I earned over 5,000, do i qualify for a rebate check, if i'm a 1099 self-employed?

Answer: If your NETincome from self employment, the amount on line 12 of your form 1040, is $3000 or over, then yes you are eligible.

SunAmerica Focused Alpha Large-Cap Fund Announces Estimated Sources of Dividend Distributions

JERSEY CITY, N.J.----SunAmerica Focused Alpha Large-Cap Fund, Inc. , a closed-end fund , today announced the estimated amounts of the sources of the Fund’s fourth quarterly dividend distribution of $0.05 per share of common stock declared on December 2, 2009 and payable on December 30, 2009 and the cumulative dividend distributions paid year to date.

Question: Does anyone know how to calculate the true savings from using a flexible spending account?

I have an FSA for my daughters daycare and was wondering if I am actually saving money by using it. I asked my HR dept. and they suggested I talk with a financial consultant for they could not honestly answer my question. Is there anyone in this forum that can answer this question? I know the money is nontaxable income, but what is the actual savings considering the taxable credit is reduced when you file?

Answer: go to www.hughchou.org. if it's not on his site, he'll do the math for you.

Labour and Employment

Health care reform has arrived as have new mandates on employers and medical service providers.

Question: is there a tax break for me?

I am a full time student, I'm 18, and I am going to a community college. I paid with a money order. I am on my parents health insurance, live in their house.
I work about 33 hours a week and so much of the money is going to taxes. on my earing statement I am paying for

federal income tax
socail security tax
medicare tax
MA State income tax

I know I have to pay for these automatically

through my gross pay is my Federal taxable wages.
Could I be able to get any tax exemptions/deductions on each paycheck?

are there any ways which when I file for taxes I can get a large sum of money back for the reason I go to school and am a full time student?

Answer: There are some tax breaks for you as a full-time college student, but only if you cannot be claimed as a dependent.

You can be claimed as a dependent of your parents as long as you do not provide over half of your own support. Since you work 33 hours a week, perhaps it is true that you provide over half of your own support.

If you can claim yourself, you can take a deduction for Tuition and Fees, or the Hope Credit, or the Lifetime Learning Credit. This will reduce the taxes you would owe, it will not pay you money.

If you cannot take your own dependency exemption, then only the first $5,350 of your wages is exempt from federal tax. The rest is going to be taxed. Your parents will claim you on their taxes, and they can take the education benefits if they paid your education expenses.

The above applies until the year you turn 24 or cease being a full-time student.

Negotiators Float Expanding Sources of Medicare Taxes to Pay for Health Bill

House and Senate negotiators are discussing an expansion of their health insurance proposal that would increase the Medicare payroll tax to include other sources of income like investment returns.