The Tax Questions Blog

Archive for June, 2009

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

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.

Family Trusts & Trustors (Series 400: Owners and Sellers) $19.95 Knowing what is likely to take place with property interests after a person's death can help that person prepare a better trust instrument before his or her death. This tax guide imparts the necessary knowledge for individuals to take a more decisive hand in clarifying the fine points and intentions of their trusts. Explained are the working components of a trust, the "why" of transfer taxation, t...

Tax Systems and Tax Reforms in Europe (Routledge Studies in the Modern World Economy) $119.95 The last decade has seen important changes taking place in the tax regimes of many European countries. A comprehensive picture of what is happening in European fiscal systems has not been easy to find - until now. This impressive book featuring contributions from leading scholars, will be of great interest not only to academics but also to those involved in the financial sectors across the world....

The M-Word: Money: A Beginner's Guide to Financial Responsibility $7.59 The M-Word: Money is a wonderful resource for financial education for teens and adults to help them begin their journey to financial responsibility. This book is designed to give an individual the basic fundamentals of personal finance and to prepare them for more complex personal financial planning....

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.

Income Tax Fundamentals 2013 (with H&R BLOCK At Home(TM) Tax Preparation Software CD-ROM) $139.19 INCOME TAX FUNDAMENTALS 2013 provides readers with a concise, practical, and time-tested introduction to the most important areas of tax law. For more than 30 years, this textbook has been the market-leading standard due to its step-by-step workbook format that walks readers through real examples using actual tax forms. With plentiful study tools, including online interactive self-quizzes, INCOME ...

Interest Rate Markets: A Practical Approach to Fixed Income (Wiley Trading) $45.99 How to build a framework for forecasting interest rate market movementsWith trillions of dollars worth of trades conducted every year in everything from U.S. Treasury bonds to mortgage-backed securities, the U.S. interest rate market is one of the largest fixed income markets in the world.Interest Rate Markets: A Practical Approach to Fixed Income details the typical quantitative tools used to ana...

The Outsiders: Eight Unconventional CEOs and Their Radically Rational Blueprint for Success $16.42 ”It is impossible to produce superior performance unless you do something different.” — John TempletonWhat makes a successful CEO? Most people call to mind a familiar definition: “a seasoned manager with deep industry expertise.” Others might point to the qualities of today’s so-called celebrity CEOs—charisma, virtuoso communication skills, and a confident management style. But what rea...

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.

The Complete Guide to Personal Finance: For Teenagers $10.97 Advertisers are well-known for targeting teenagers and have a firm reason for doing so: Teenagers spent close to $190 billion in 2006, and that figure is expected to jump to approximately $209 billion by 2011. It seems quite obvious that teenagers know how to spend money, but do they know how to save? Personal financial planning is the process of establishing your own financial goals and finding a...

PassPorter's Disney Weddings and Honeymoons: Dream Days at Disney World and on Disney Cruises $14.51 Walt Disney World hosts more than 2,500 weddings each year, and it's one of the most popular honeymoon destinations in the world. Whether you're looking for a casual vow renewal on the beach, a designer wedding in the shadow of Cinderella Castle, or a honeymoon with a touch of pixie dust, this book is for you!PassPorter's Disney Weddings & Honeymoons is both a guidebook and a bridal organizer tail...

The Fine Art of Fundraising: Secrets for Successful Volunteers $8.86 Carolyn Farb's tried-and-true tips will motivate longtime fundraisers to continue in their endeavors and draw new fundraisers into the fold.Carolyn Farb knows the world of fundraising from the bottom floor to the executive suites — and in The Fine Art of Fundraising, she gives readers the complete tour. This book caters to volunteers who want to make things happen, whether they're raising funds ...

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!