The Tax Questions Blog

Archive for May, 2008

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.

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

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!

(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.