The Tax Questions Blog

Archive for June, 2009

Question: Why is my Gross Pay different from my federal taxable wages when I have "0" federal allowances?

Why is my Gross Pay different from my federal taxable wages when I have "0" federal allowances???

my federal withholding allowance is less than my gross income... and my federal exemptions/allowances is zero.

Please help

Answer: These two numbers would differ if you were contributing to either pre-tax health care benefits or a 401 (k), 403(b) or Simple IRA.

Guest opinion: hot topics in direct taxation

We are now well into the new tax year and changes are already coming into play for individual taxpayers that are having an impact on net pay, particularly where higher earners are concerned.

Question: What will be my Taxable income and what is the amount of investment i will need to do in India?

The details of my salary are as under
Basic 12000/-
HRA 6000/-
Other Allowances 9481/-
LTA 800/-

Out of which 1440 is being deducted for Provident fund and 200 for professional tax.

Answer: these figures are not complete to calculation your taxable income.

for calculating your taxable income we also need

1. how much you pay for your house rent,
2. in which city you live,
3. lta is taxable or not for this year,
4. any other income you have.

You can do a maximum of Rs. 100,000.00 investment for maximum saving of tax.

Here's how salaried people can save taxes!

Finding the right way to save taxes requires a great deal of planning. Here's a helping hand.

Question: Does the new Tax-free savings account lower your taxable income?

Does the new Tax-free savings account lower your taxable income? Or does it just protect you from paying tax on interest?

Answer: That tax free savings account has nothing to do with your taxable income when you make a deposit (contributions are not tax-deuctible). All earnings on the account are tax sheltered and take free upon withdrawal. Be careful where you set it up though...not everyone offers the same types of investments that can maximize your tax savings.

Trusts owning partnership interests and the revised UPIA.(Uniform Principal and Income Act): An article from: The Tax Adviser $9.95 This digital document is an article from The Tax Adviser, published by American Institute of CPA's on January 1, 2010. The length of the article is 1239 words. The page length shown above is based on a typical 300-word page. The article is delivered in HTML format and is available immediately after purchase. You can view it with any web browser.Citation DetailsTitle: Trusts owning partnership inte...

No taxable income limitation for excess investment interest expense carryover.: An article from: The Tax Adviser $5.95 This digital document is an article from The Tax Adviser, published by American Institute of CPA's on January 1, 1994. The length of the article is 679 words. The page length shown above is based on a typical 300-word page. The article is delivered in HTML format and is available in your Amazon.com Digital Locker immediately after purchase. You can view it with any web browser.From the supplier: T...

Royalty from sale of interest in scholarly journal not taxable.: An article from: The Tax Adviser $5.95 This digital document is an article from The Tax Adviser, published by Thomson Gale on May 1, 2006. The length of the article is 863 words. The page length shown above is based on a typical 300-word page. The article is delivered in HTML format and is available in your Amazon.com Digital Locker immediately after purchase. You can view it with any web browser.Citation DetailsTitle: Royalty from sal...

Claim deduction

I have invested Rs 1 lakh in the Senior Citizen Savings Scheme during the current financial year (2009-10). Can I claim deduction under Section 80C of the Income Tax Act?

What is Business Income?

Question: Tax impact on Fees to Start a Business?

Hi, I plan on starting a business, and instead of starting from scratch I intend on going through a company which provides the training, software licencing, setup assistance including incorporation, and access to their network of other owners affiliated with them. The company charges a flat fee for all of these services I also plan to incorporate (S Corporations) as part of the business startup.
My question is: If I pay for the service from my personal funds, is the flat fee a tax deductible fee? Or would it be best to fund the corporation then pay the fees from the corporate funds. I'd like to reduce my taxable income for 2007 if possible. Thanks

Answer: Loan the money to the corporation and document it with a simple promissory note. You can find one online by searching for "free promissory note". Then record in the corporate minutes a board meeting authorizing the loan. Kind of a pain but that's what you need to do to maintain the protection a corporation affords you. These expenses will be capitalized and amortized over future periods. A portion might be able to be expensed immediately. Since I don't have all the details I further suggest you have a brief discussion with a cpa.

Top 10 Stories of 2009

The Double JJ Resort in Rothbury, including the Gold Rush indoor water park, was purchased by Progressive Resorts just in time for the second annual ROTHBURY Festival.

Definitions and Requirements - Ch. 2 - Basic Sales and Use Tax

Question: If they mail out my tax return on the 11th when will I get it in the mail?

I live in the state of PA. I'm not looking for a def date but roughly when do you think.
I went to www.irs.gov and clicked on where's my refund. They didn't mail it yet they said it should be mailed out by Monday.
Well then I guess they lied to me huh?
Your tax refund is scheduled to be mailed on February 11, 2008. If you do not receive the refund by March 10, 2008, please contact us again. We are unable to take any action until then.

Exactly what it says I copied and pasted it.

Answer: 14th....or...15h at the Latest!
Snail mail = 3days.

Economic recovery likely still months off for region, analysts say

Economists say we are turning from recession to recovery. At first glance, it doesn't seem that way in southern New Jersey, where unemployment has been outpacing state and national levels, and the number of foreclosures and personal bankruptcies have failed to retreat for any significant period.

Keir Educational Resource celebrates 40 years!