The Tax Questions Blog

Archive for May, 2009

Question: Need Help with retirement income US tax issue. Is lump sum from pension taxable?

Ok, so I'm 55 and want to get early payment started on a pension being held by a former employer. I'm still working this year but will retire and have no monthly salary in all of 2010. I can get a lump sum from the pension, or start monthly annuity payments. I need the income right away so leaving to sit is not an option. If i get a lump sum and don't shelter it in an IRA , is that distribution subject to Fed income tax? Likewise, are the monthly payments if i select a lifetime annuity taxable?

Answer: If you elect the lump sum, then the amount minus your basis is taxable.

If you elect the annuity, then your basis is divided by a number that depends on your age. That amount per month is not taxable for several years. When the total amount that was not taxed equals your basis, then the remaining payments are fully taxable.

In either case, the total untaxed amount equals your basis. In either case, the total taxed amount equals the difference between the total of the payments minus your basis.

How the New Wealth Taxes Will Hit You

The health-care bill that Congress passed in March contained two surprising new taxes to help pay for the changes. Here's how they work.

Question: How does money laundering/tax evasion work?

I read an article about tax havens like Liechtenstein where CEO's launder money/tax evade through banks like those owned by the government (LGT in Lichtenstein owned by the royal family). How does this work?

Answer: Read all about it. Ya gotta love that there is a moneylaundering.com website.

http://money.howstuffworks.com/money-laundering.htm

http://www.moneylaundering.com/

http://en.wikipedia.org/wiki/Money_laundering

Johnston art dealer pleads to mail fraud and money laundering

Johnston art dealer, who had several victims, pleads to mail fraud and money laundering

Blackwater_ child prostitution, money laundering, tax evasion, murder, etc..

Question: i am married and have 1 kid what will be the living cost in USA i am mechanical engineerwhat salary will i get

how much will i save after tax deduction?
THANKS KEVIN I AM AN MECHINICAL ENGINEER WITH M.TECH(Product Design and Manufacturing) IA M PLANNING TO SEARCH JOBS IN KANSAS,NEW YORK OR CAN U PLS TELL ME WHICH CITY IS BEST FOR ME OR ANY GOOD WEB SITE TO SEARCH FOR JOB THANKS IN ADVANCE
thanks crystal violet for ur answer can u please guide me on school fees per month as well

Answer: Minneapolis has a great economy, with lots of different industries. The cost of living is much, much lower than New York, LA or Chicago. But there is a lot more to do than in Kansas.

Minneapolis is in Minnesota, the "midwest" of the country, pretty much the center, top. It does get cold, but you get used to it. Plus Downtown has miles of enclosed skyway.

Check out Salary.com and try Minneapolis.

I am a Biology major w 2 years experience, I make about $30,000 a year, my Husband makes about $70,000 a year as a computer programmer. That puts us in the top 10 percent of income.

My husband's brother is going to come here, he doesn't have many job skills or education, we expect he will be able to make at least $20,000. Even "low" jobs like store clerk make a good wage here. Enough to live on.

An apartment in Minneapolis could range from $400 a month to $1000 a month. A house could cost as little as $900 a month.

Food if you eat at home is about $200-300 per person a month.

Many people own a car, Payments range from $150 to $500 a month.

Gasoline for the car adds another $120 a month. If you live downtown you can get a train pass for $80 a month, or a buss pass for most of the city for $50

Entertainment can be:
$0 parks and librarys
$7 per person for a movie
$50-100 per person to see a concert

Our taxes are about 20% of our salary

You should be able to get medical insurance through your job, for a 1 person it might be $50 a month, for a family it could be up to $300.

2009: Year In Review

Happy New Year! With 2009 at an end, the Crawford County Avalanche presents its annual Year In Review. The Year In Review includes article summaries from stories featured in 2009 Crawford County Avalanche editions.

SHOCK! Police Used Water instead of Gas to Runn all Cars - To Save US tax payers Money!

Question: I have been reporting my partners income to centrelink BUT?

instead of putting it in as weekly they stuffed up and put it as a fortnightly amount anyhow now "apparently" i will have to pay back a debt to centrelink!!! what i would like to know is i have overestimated out taxable income for the financial year so would that cover that or not his actuall taxable income is 24,000 but i told centrelink it would be 32,000 so because of that would that counter balance the debt...i hope you can understand what i mean...

Answer: Hi, reporting income tax and family income are two different issues. However adjustment of your income tax assessment will take a bit of time and you have to formally ask the tax office for reassessment of your income tax for the specific year. You have to attach the necessary documents to conferm your total income for the year. As I said it will take a bit of time and couple of phone calls to adjust it. If you have over paid you will eventually get it that back. In order to pay back the over payment of centrelink as in Canada we call in social service unfortunately you have to pay them back. Thanks.

Union County to pay budget shortfall from general fund

Published: Friday, January 8, 2010 at 3:15 a.m. Last Modified: Thursday, January 7, 2010 at 10:01 p.m. Union County Council voted unanimously Thursday to allow the supervisor's office to pay its 2009 budget shortfall to the state from the county's general fund.

Bond Auctions Survive Credit Freeze, Bankers’ Hex: Joe Mysak

Jan. 6 (Bloomberg) -- Selling municipal bonds the old- fashioned way, at auction , still hasn’t gone out of style. This is welcome news for all those who believe in good government, and who also know that inviting banks to bid on bonds can save borrowers money.