The Tax Questions Blog

Archive for March, 2009

Question: Your opinion on my idea for reducing the federal deficit?

Everyone is worried about the federal deficit and no one wants to raise taxes. Many people also complain about the fat paychecks that people on Wall Street get but raising taxes on the wealthy alone won't solve the problem.

How about this for a solution: start charging a minimal fee (say $0.10 per share) on ever share traded at all of the major exchanges. Shares under a certain amount could be exempt to discourage share splitting just to avoid the fee.

Rationale - The US markets trade hundreds of billions of shares every year and the SEC and other government agencies spend billions of dollars to police this activity (although poorly) and the many of the people paying for it (tax payer) never benefit from the activity.

By the way, don't just say that the capital gains tax covers this. Brokerage houses make money whether their client makes money or not. Likewise, the SEC still has to oversee the activities whether the market is up or down.

Answer: Good idea, the head of the NYSE makes $200,000,000 a year, they can afford 10 cents a share.

The Federal deficit is very real, it's no different than a credit card account, and the interest payment MUST be made every month.

Gilbert mulls relationship with nonprofits

Economic difficulty and political philosophy are forcing Gilbert to rethink its relationship with East Valley nonprofits, some of which have received financial support from the town for years.

CREDIT COUNSELING and DEBT CONSOLIDATION VIDEO: What you need to know before you sign up

Question: can we filing taxes jointly while separated?

My spouse and I are legally separated, I am wonder if we can still filing jointly because it will lower our taxes. Is it possible?
Based on what you said it won't effect our divorce plans.

Answer: Absolutely, if you are married, you can always file "married filing jointly," regardless of where you live or if you're seperated. There are no legal or tax problems with filing this way, so you don't have to be worried.

Usually, people who are seperated want to file "married filing seperately" because they can't stand one another. Unfortunately for them, they can only possibly file seperately if they have lived in seperate residences for at least one full year.

Restoring Anthony

ANTHONY - The burned out remains of nearly a block of businesses in downtown Anthony, destroyed by a ...

WALLY TAX -Bridges are burning

Question: Can I withdraw funds from a retirement account for my sons college without the penalty?

I'm not 55 years of age
The account was a pretax funded account.
I was hoping to help pay for his college with some funds from my own IRA and was told this may be able to be done without paying penalties. I am sure there must be parameters for this though. i realize the money withdrawn would be taxable income but was hoping to avoid the 20% penalty usually charged. Any help would be appreciated. thanks
Rick

Answer: I'm afraid unless you're 591/2 the penalties will apply to a pre-tax retirement account. Some retirement accounts will let you take a loan against the account for a college education or the purchase of a first home but then you pay back your account with interest. Check with your employer/bank.

UDSB passes final budget with 11.63 percent tax increase

The Upper Dublin School Board approved its final budget for the 2010-11 school year at a cost of $78,921,585 during its June 16 meeting.

Year in Review/Year in Preview: Bonds

Question: Housing Benefit and Council Tax suggestion?

I believe HB and CTB should be treated on Yearly income like the Tax Credits. That way, we people can save for the future for family and children.

Because the way HB and CTB is means tested, our savings for children and future can affected. So the saving do not help esp when on mean tested benefits. (Eat your saving and then apply for benefit!!!)

Why do you think about my suggestion (this applies in France)

Thanks

Answer: Why should workers who pay tax fund your housing and your children to allow you to build up savings? Surely this isn't a real question!

Condo project shifts direction; Unable to sell any units at auction, developer aims for affordable housing

Redmond-based Housing Works did not sell any of the 10 condos it put up for auction last month in its Putnam Pointe development in downtown Bend and will instead try to convert them into affordable-housing units, according to officials with the nonprofit.Tim Cox, the agency's chief financial officer, said the condos were well-conceived but a victim of bad timing. To avoid defaulting on a ...

2008 State of the City Poverty Webisode

Question: Am I required to file tax return with only $123 interest income?

My husband uses 1040 NR to file tax return, which doesn't allow him to claim spouse and dependent exemptions. I don't work and have nothing but $123 interest income. Should I file a seperate return for the $123 or should my husband add my$123 to his interest income?
Thank you!

Answer: No you do not file tax return.
What visa does your husband has? May be he is eligible to file joint return as residents.

http://taxipay.blogspot.com/2009/02/tax-for-visa-holders-us-expatriates.html

Kansas May Need 16 Weeks to Refund Paper Tax Filings

The Kansas Department of Revenue warned that it may take up to 16 weeks to process state tax returns filed on paper as the state copes with budget cuts.

How To Verify the e-File Status of Your Tax Return in TurboTax