The Tax Questions Blog

Archive for May, 2008

If you're new here, you may want to subscribe to my RSS feed. Thanks for visiting!

Question: Taxable Marital Status?

Hi,

I am residing in US on H1B for last 3 years.I got married in July 2007 in India and my spouse came along with me on H-4 Visa in July 2007 as well.I changed my marital status as "married" on the Employers Corporate WebSite. But did not change the W-4 information seperately

Now i received my 2007 W-2 and it says my taxable marital status as "Single".

My question is that if i file my 2007 tax return as "Married filing jointly" will it create any issue in terms of how much money i will get back? My wife is still on H-4.

Did anyone encounter similar situation or know how i can fix my 2007 W-2 now ?

I appreciate any help in advance

Thanks

Answer: The marital status on your W-2 does not affect the filing status of your tax return. The W-2 simply reflects that you selected "Single" amounts ($) to be witheld in anticipation of filing your taxes. Anyone can withold as "Single" but file in any other filing status. Since you are legally married (anywhere in the world) you file as Married Filing Joint.
If you get a large refund, you may want to change your W-2 witholding to Married with 1 or 2 exemptions to reduce the amount witheld from your monthly paychecks. This has NO EFFECT on the amount of tax you pay or your filing status. It simply changes WHEN you pay or how big a refund you receive. You can change the witholding by filling out a W-4 form at your employers pay office.

The Encyclopedia of Small Business Forms and Agreements: A Complete Kit of Ready-to-Use Business Checklists, Worksheets, Forms, Contracts, and Human Resource Documents With Companion CD-ROM $15.60 Those who wish they had a resource in which every possible small business form and agreement they have ever encountered was located can breathe a sigh of relief. The Encyclopedia of Small Business Forms and Agreements is the answer, as it will provide small business owners with ready-to-use checklists, worksheets, forms, contracts, and human resource documents. Inside these pages you will find ove...

Being Self-Employed: How to Run a Business Out of Your Home, Claim Travel and Depreciation, and Earn a Good Income Well into Your 70s or 80s (Series 100: Individuals & Families) $10.00 Designed for navigating through the tax code, this guide helps the self-employed keep a greater percentage of their income. The importance of keeping up-to-date records, measuring net profits and losses, and handling the "SE tax"—a flat tax which every self-employed person is subject to—is discussed. Particular attention is paid to preparing for audits, changing tax status after marriage or di...

Being Self-Employed: Guides to Help Taxpayers Make Decisions Throughout the Year to Reduce Taxes, Eliminate Hassles, and Minimize Professio (Allyear Tax Guides Series 100: Individuals and Families) $19.95 ...

Question: How long does it take to receive your federal tax refund if you mailed your returns for previous years?

I neglected to file my taxes until this year. I filed for 2004, 2005, and 2006 in January of 2008. After filing, I realized that I didn't owe any taxes, I am actually owed money for all three years. I was wondering how long does it take if you mailed your return?

Answer: it should take 6 to 8 weeks.

IRS tightens rules on tax preparers

About 1 million people who prepare income tax returns for a fee will have to register with the government, and many will have to pass tests and take classes. California already has such rules. The Internal Revenue Service for the first time will require the nation's roughly 1 million tax preparers to register with the federal government, with a large percentage of them having to pass competency ...

Recovery: Vehicle Tax Deduction - June 09

Question: Are lawsuit settlements taxable in Pa?

I recieved a settlement from a drug company because I became very addicted and went thru hell getting off (on my own) and the drug rotted every one of my teeth which cost 9,000 to partially fix.. It's for $12,000 after lawyers fees. I wanted to know if it is taxable. I live in Pittsburgh Pa.

Answer: Usually compensatory damages are not taxable but punitive are

Wiley CPA Exam Review 2013, Regulation $35.22 Everything today's CPA candidates need to pass the CPA ExamPublished annually, this Regulation volume of the comprehensive four-volume paperback reviews all current AICPA content requirements in regulation. Many of the questions are taken directly from previous CPA exams. With 3,800 multiple-choice questions in all four volumes, these study guides provide all the information candidates need to mas...

Social Security For Dummies $5.74 The easy way to get a handle on Social SecurityAre you or a loved one looking to understand how Social Security benefits work? Social Security For Dummies helps you better understand and navigate the U.S. Social Security Administration, covering important topics such as how benefits are funded and distributed, the various Social Security options and how to qualify, and deciding when to start acce...

J.K. Lasser's Your Income Tax 2013: For Preparing Your 2012 Tax Return $12.72 America's number one bestselling tax guide offers the best balance of thoroughness,organization, and usabilityFor over half a century, more than 39 million Americans have turned to J.K. Lasser foreasy-to-follow, expert advice and guidance on planning and filing their taxes. Written by ateam of tax specialists, J.K. Lasser's Your Income Tax 2013 includes all theoutstanding features that have made t...

FACTBOX - Major differences in U.S. Senate, House health bills

This compromise bill would have to be passed by both chambers of Congress before being sent to President Barack Obama to sign into law. Healthcare reform is Obama's top legislative priority, and the Democrats are aiming to overcome unified Republican opposition.

Estate Planning : Estate Planning Costs

Question: Should I be taxed on my holiday bonus from work?

I thought the whole point was that this was bonus money, meaning non-taxable... I'm not sure though...

Is this work holiday bonus money supposed to be taxed?

Answer: The IRS defines bonuses as income and it is subject to taxation, not only that if the bonus is substantial enough you will pay a higher rate of taxes than you normally do. One way around this is to change your withholding to exempt the last month of the year then change it back in January.

Sara Lee Reports Strong Second Quarter Earnings; Raises Guidance for Second Consecutive Quarter

DOWNERS GROVE, Ill.----Sara Lee Corp. : Diluted EPS as reported of $0.53, compared to $ in the prior-year second quarter Adjusted EPS¹ of $0.36, compared to $0.19 a year ago, driven by strong operating performance Company raises guidance for fiscal 2010 Adjusted EPS to $1.00 – $1.05 per share Pricing actions and innovation drove improved volume trends in the second quarter Cash flow from ...

Question: which one is better turbotax or taxcut?wat about tax brain?

Answer: They are suppose to be about the same. I use professional software, made by Intuit, so I don't know.

Just don't go to H&R Block! They are expensive and, in my opinion, totally incompetent!

...

NeatReceipts Mobile Scanner and Digital Filing System - PC $229.99 NeatReceipts works where you work - weighing in at less than a pound and powered by USB, NeatReceipts is the perfect tool at work, at home or on the go. NeatReceipts helps you free the information that's trapped in your documents, so you can organize, store, secure and activate it. Scan receipts for expense reports, digitize business cards, prep for taxes (IRS accepts NR scans in lieu of actual ...

(AFX UK Focus) 2010-06-24 23:53 UPDATE 2-H&R Block reports better-than-expected Q4 profit

(Adds conference call details) June 24 (Reuters) - H&R Block Inc, the largest U.S. tax preparer, posted a better-than-expected quarterly profit, partly helped by lower operating expenses, but declined to provide a guidance.

Taxes Online 2007 / 2008 - TurboTax/TaxCut/TaxBrain etc.