The Tax Questions Blog

Archive for April, 2010

Question: How does my online ministry become fully tax exempt?

I am starting an online organization, and we are pursuing tax exempt status as a non profit organization. I live, and am filing, in the state of California. I have sent in our Articles of Incorporation as a "religious organization"(a church). Now, I know with form 1023 you can become federally tax exempt, but don't you also have to file with the state of california seperately to become tax exempt? If we are not looking at gross income of more than maybe 2000 a year, then is there anything we would have to file annually, bi-annually, etc...?

God Bless!

(you can get more information specific to the ministry at newhope.spaceflem.com)

Answer: You should have a federal EIN, even if you do not have employees. You would need to file Form SS-4 to get a number.

Exempt organizations under section 501(c)(3) still file annual tax returns. You would file Form 990 or 990-EZ.

Here's an IRS tax guide for churches. You should read it thoroughly, you'll find a lot of useful information.

http://www.irs.gov/charities/churches/index.html

You would also need to file Form FTB 3500 for CA tax exempt status. Here is the CA website:

http://www.ftb.ca.gov/businesses/faq/709.html

IRS: new tax credit can help small biz

WASHINGTON — Many small businesses and tax-exempt organizations that provide health insurance coverage to their employees now qualify for a special tax credit, according to the Internal Revenue Service.

File federal and state tax FREE! Software for filing needs

Question: How do you figure taxable income from your Adjusteed Income,when you do your tax returns?

My taxable income was $23,409 Less than my Adjusted Gross Income. There was $10,460 For total tax and credits. My question is how do I find out where the $12,949, that was taken from the Adjusted Gross Income? Does this have something to do with the taxes I payed on my mortgage loan on my house?

Answer: The difference between Adjusted Groos, and Taxable Income, is your personal exemptions and either standard or itemized deductions.

Loan refinancing deemed a taxable distribution.: An article from: Journal of Accountancy $9.95 This digital document is an article from Journal of Accountancy, published by American Institute of CPA's on September 1, 2009. The length of the article is 530 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: Loan refinancing deeme...

A bill to be entitled An act to exempt from taxation loans made on hypothecation of non-taxable bonds. ...

Was an employee loan really a taxable cash advance?(sign-on bonuses): 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 July 1, 2001. The length of the article is 869 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: ...

Real Estate

The first article ' Ownership of Land in China ' focused on a general overview of real estate law in the PRC and a brief outline of the bid process for acquiring land use rights.

Buying a Home in 2010... Taxes Do Matter

Question: VAT Registration - Future Test?

For the future test for VAT registration, where you expect taxable supplies to exceed £61,000 in the next month,

does that mean taxable supplies for the whole year up to that point,
or just supplies in that one month?

Answer: It means taxable supplies for the 12 MONTHS up to that point, not your accounting year. Easiest way to track this is to enter each month's suppiles on a spreadsheet and keep a running total. As soon as it hits £64k, then you know you need to register.
Your customers can only reclaim VAT if they are registered.

Southern Imperial Inc. R24-10-TH Long Handle Tool Hook $65.99 "SOUTHERN IMPERIAL INC" TOOL HOOK Long Handle Perfect for tools, brooms, etc. 4 prong back provides extra strength. Works in 1/4" perforated paneling and slatwall. Hook specifications: Hook size: 10". Hook strength: Heavy duty. Wire diameter: .224"....

Lozier Corp DD7791.CHR Saw Display 10W x 6D X 2H (Pack of 2) $15.99 "LOZIER" SAW DISPLAY Size: 10"W x 6"D x 2"H Saw blade displayer used as part of the Department 2 Plan-O-Gram Displays point upwards at a slight angle so as to point the saw directly at the consumer...

Southern Imperial Inc. RDSITN2048-C Shelf Edge Bin Tag Channel 1-1/4x47-3/4 (Pack of 50) $75.99 "SOUTHERN IMPERIAL" SHELF EDGE BIN TAG CHANNEL * 1-1/4"H x 47-3/4"L * Snap in feature * Fits standard 1-1/4" Lozier Madix shelf edge * Holds up to 1-1/4"H bin tag or insert * Clear * Box/50...

Board of Education approves $34.8 million budget

Byline:  Chris Coughlin Breaking News:  No The Board of Education (BOE) finalized the 2010-11 school budget at their most recent meeting on Wednesday, March 24 and approved $ 34,826,872 for the 2010-11 year, an increase in the current budget of 3.16. read more

Learn About the New 2009 College Tax Credit

Question: Can anyone explain how to solve this equation?

The maximum taxable wage base is $35,000. For wages less than the maximum taxable wage base, Social Security contributions by employees are 7.65% of the employee's wages. (Source: Social Security Administration)

(a) Find an equation that expresses the relationship between the wages earned (x) and the Social Security taxes paid (y) by an employee who earns less than the maximum taxable wage base.

(b) For each additional dollar that an employee earns, how much does his or her Social Security contribution increase? (Assume that the employee's wages are less than the maximum taxable wage base.)

(c) What Social Security contributions will an employee who earns $29,066 (which is less than the maximum taxable wage base) be required to make?

I'm so lost someone please help!
Can anyone EXPLAIN how you find the answer?

Answer: The maximum taxable wage base is $35,000. For wages less than the maximum taxable wage base, Social Security contributions by employees are 7.65% of the employee's wages. (Source: Social Security Administration)

(a) Find an equation that expresses the relationship between the wages earned (x) and the Social Security taxes paid (y) by an employee who earns less than the maximum taxable wage base.

ANSWER: y = 0.0765x................x < $35,000

(b) For each additional dollar that an employee earns, how much does his or her Social Security contribution increase? (Assume that the employee's wages are less than the maximum taxable wage base.)

ANSWER: For each additional dollar that an employee earns, his or her Social Security contribution increases by $0.0765 or 7.65 cents.

(c) What Social Security contributions will an employee who earns $29,066 (which is less than the maximum taxable wage base) be required to make?
y = 0.0765(29,066)
y = $2,223.549

ANSWER: An employee who earns $29,066 will be required to contribute $2,223.549

Social Security: Raising or Eliminating the Taxable Earnings Base $0.99 Social Security taxes are levied on covered earnings up to a maximum level set each year. In 2010, this maximum-or what is referred to as the taxable earnings base-is $106,800. The taxable earnings base serves as both a cap on contributions and a cap on benefits. As a contribution base, it establishes the maximum amount of each worker's earnings that is subject to the payroll tax. As a benefit bas...

Raising Living Standards: The Role of Tax Policy

Speech delivered by John Whitehead, Secretary to the Treasury AGM of the New Zealand Institute of Managers

Never Work: a Metropolis detournement

Question: Are my winnings or settlements from a lawsuit taxable?

I'm negotiating a settlement in a lawsuit. If I agree to a settlement is it taxable? If I go to court and a judge awards money is it taxable? Is there anyway around this other than structured settlements?

Answer: It depends on why you sued the person. If it was for lost wages, then yes, it is taxable. If it is for damages, for example, then no.

http://www.cra-arc.gc.ca/E/pub/tp/it365r2/it365r2-e.html

Qualcomm Raises Financial Guidance for the Second Fiscal Quarter of 2010

Qualcomm Incorporated , a leading developer and innovator of advanced wireless technologies, products and services, today updated its financial guidance for the second fiscal quarter ending March 28, 2010.