The Tax Questions Blog

Archive for January, 2010

Question: My husband filed his tax return on turbo tax and got an error message about some 1099 form.?

This is the error message "Error Code 0103: Form 1040/1040A/1040EZ - Total Federal Income Tax withholding shown on tax form must equal the sum of withholding on Other 1099 and AK Dividend, withholding on Form W-2, withholding on any Form 1099-R and withholding on Form W-2G.
To fix this error, enter the withholding using whole dollar amounts."
My husband is not an independant contractor though so he has no reason to file a form 1099 and was never sent on in the mail We are really confused.. What could we have possibly done wrong?

Answer: Does he have Forms 1099 INT or Forms 1099 R? If he does, he'll have to record the withholding amounts accordingly into the software program. I understand that he doesn't receive Form 1099 MISC because he is not a contractor. However, there are many different 1099 Forms.

BTW, he should also watch out for the rounding to the nearest dollar.

TurboTax Home & Business Federal + State + Federal efile 2009 $42.89 TURBOTAX HOME & BUSINESS WITH...

TurboTax Basic Federal + e-File 2010 - [Old Version] $4.99 The Intuit TurboTax Basic Tax Year 2010 Software automatically double-checks to help make sure your return is accurate. It features downloadable Audit Support Center, which provides guidance on everything you need to do if you are contacted by the IRS. And finally, it files your return electronically and prints it on plain paper....

Apply early for 2010 financial aid

CHERYL BURKE

Backup Withholding for Form 1099-MISC

Question: i am working India going USA six month on B1/B2 visa is my site allowance is taxable in india when I return?

when i come to india when filing return this allowance amout is taxeble or not

Answer: You are required to spend the allowance outside India.If brought back to India it can be subject to tax.
The news on the link below will be of interest to you.

http://www.allindiantaxes.com/ait-news-55.php

No TDS on salary to non-resident employees
AIT News Network

NEW DELHI. Authority for Advance Rulings(Income-Tax) vide a recent ruling AIT-2006-249-AAR has ruled that the salary paid by the Company registered in India to non-resident employees for rendering services outside India shall not be taxable in India if the same has been offered for tax in the UK in pursuance of the DTAA.

T H E F A C T S:

The applicant company registered in India under the Companies Act 1956 and itself a resident in India within the meaning of section 6 of the Act, it raised certain issues relating to the tax liability of some of its non-resident employees lent to group companies abroad. The applicant sought advance ruling of the Authority on the following questions :

(i) Whether in the facts and circumstances of the case and in law, salary income received in India by Mr.Manish Gupta from British Gas India Private Limited for rendering services outside India is taxable in India?

(ii) Whether in the facts and circumstances of the case and in law, British Gas India Private Limited is required to withhold taxes on salary paid in India to Mr.Nipun Pradhan and Mr.Manish Gupta for rendering services outside India?

The applicant stated that it is a part of BG Group, a leading international energy company which deals in all kinds of natural gases. India is one of BG Group’s six core geographic areas of operation. The applicant is responsible for managing and developing upstream and downstream interest of the Group in this country. The applicant lent some of its employees to BG Group entities outside India.

T H E R U L I N G:

(i) The salary paid by the applicant to Mr.Manish Gupta shall not be taxable in India, if the same has been offered for tax in the U.K. in pursuance of the DTAA.,

(ii) The applicant shall not deduct tax at source from salary paid to Mr.Nipun Pradhan and Mr.Manish Gupta in India, provided it is satisfied from the details and particulars furnished under section 191(2) that taxes have been paid on such payments in the U.K.

( Click here for full text of Ruling AIT-2006-249-AAR )

Use company car, decline its leased flat: Experts

There are a few things, though, that they can do from next year to ensure their tax outgo is lower.

The irresistible casino bonuses turn the games of Cool Cat all the more exciting. Ranging from the first time bonuses to the monthly bonuses, Cool Cat never runs short of offering lucrative bonuses to its players. Be a regular player of Cool Cat and get updated with will the latest bonus bonanzas of Cool Cat.

Cool Cat welcomes players of all levels of gambling. Hence, the range of bonuses is huge. Let us have a look at the casino games bonuses offered at Cool Cat casino.

Casino Bonus of Cool Cat

Free Sign up bonus – If you are not much comfortable in gambling by wagering your own money, avail the Cool Cat free sign up bonus. Once you register with the site, your account will instantly get credited with $100. So, test play all the games of the casino without staking a single buck from your own pocket.

Monthly Bonus Promotions – Cool Cat brings a series of fresh bonuses every month. The Cool Cat monthly promotions are updated at regular intervals bringing in lucrative gambling facilities for its loyal players.

VIP bonuses – If you want to taste the best of Cool Cat gambling, go for the VIP bonuses. The benefits of earning VIP status in Cool Cat is immense. Check the advantages and requirements of the bonuses from the Cool Cat's VIP promotions page.

For its new players, Cool Cat hosts a special offer of free $100 signup bonus. On your first deposit, you can avail the 1000% bonus explosion offer by redeeming the coupon code 1000BONUSEXPLOSION.

Gear Up to play with Cool Cat and enjoy the fascinating casino bonus and all online casino promotions.

Seven Year-End Tax Tips

These strategies will help you save money and get ahead in 2010.

Are You Fed up of Crappy Commission Payouts? Want to Make Long Term Passive and Residual Income ?

Question: What is IRS form letter 147C?

Where do you find it or get it?

Answer: You can find information about this form at:

http://www.irs.gov/pub/irs-pdf/p1679.pdf

Hope this helps.

Question: CST tax for Software in India?

We are Society doing in R & D in IT based in Chennai, We are going purchase software from Bangalore,
What is a Tax rate of CST Tax ? or any exemption is there for Softwares purchase in CST ?

Vendore Telling 4% CST Tax

Answer: The vendor is right.
The CST is 4%

Percentage of Indian citizens and PRs in Singapore rises with continued inflow from India

The percentage of Indian citizens and PRs in Singapore has increased from 7.9 percent of the population in 2000 to 9.2 percent in 2009 which represents an increase of about 85,000 in absolute numbers: [Source: Singstat] As the fertility rate of ethnic Indians in Singapore has been declining steadily for the last decade, the increase is likely to [...]

SAP connector for iTAX ( Indian Taxation software) for ERP