The Tax Questions Blog

Archive for July, 2010

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Question: I need help with my taxes, because I think I'm losing too much.?

Hi, I'm a paid intern earning $8/hour, and was calculating what percent of my money automatically went to taxes last year, and came up with a whopping 14%. Is this a lot? I'm only working 8 weeks this summer, and will be going to college next year, so every bit of money will help.

This is a copy of my wages YTD last year, and the tax deductions that occurred. The columns go from State, Tax Classification, Taxable Gross, then taxes. Can you break each one down for me, and maybe tell me if I can get one or two removed, and if so, how? Thanks!

FED OASDI/Disability - EE $645.00 $39.99
FED FICA Med Hospital Ins / EE $645.00 $9.35
FED Withholding $645.00 $46.56
CT Withholding $645.00

Answer: The amount withheld is based on the W4 that you filled out. It withholds and assumes that you will be working for the full year. At the beginning of next year when you file your tax return, you will get a refund back if you paid extra.

If you believe you are having too much federal income taxes withheld, you can refile your W4 and add exemptions to reduce your taxes.

Use this calculator to estimate the taxes you will owe.

http://www.dinkytown.net/java/Tax1040.html

Social security tax is fixed at 6.2% and medicare tax is 1.45%.

PassKey EA Review, Complete: Individuals, Businesses and Representation: IRS Enrolled Agent Exam Study Guide, 2013-2014 Edition $137.93 Learn how to become an enrolled agent with PassKey's comprehensive EA Review study program, newly revised and thoroughly updated for tax year 2012. The numerous sample questions and answers at the end of each chapter prepare you for the EA exam offered during the May 1, 2013 to February 28, 2014 testing window. This is an in-depth study guide for all three parts of the IRS enrolled agent exam. Us...

PassKey EA Review, Part 1: Individuals: IRS Enrolled Agent Exam Study Guide 2013-2014 Edition $56.76 This book is designed for test-takers who will take their EA exam during the May 1, 2013-Feb. 28, 2014 testing window, which tests the 2012 tax year. Learn how to become an enrolled agent with PassKey's comprehensive EA Review study program, newly revised and thoroughly updated for tax year 2012. This is an in-depth study guide for Part 1 of the IRS enrolled agent exam. Using simple-to-understand...

Forensic Accounting and Fraud Examination $42.81 Forensic Accounting provides comprehensive coverage of fraud detection and deterrence and includes the broader educational material of the forensic accounting field with all the necessary accompaniments. The text follows the model curriculum for education in fraud and forensic funded by the U.S. national Institute of Justice and developed by a Technical Working Group of experts in the field. The ...

Opinion: Care needed before signing off in settlements

Under current economic conditions, more disgruntled employees seem to be taking action against their employers. Unfortunately, many settlements are reached based on legal advice that the cost of fighting the battle is less than the immediate punishment, as opposed to the relative merits of the claim. read more

IRS Wants Cut from $20 Billion Oil Spill Victims Fund, Growing Hurricane Fears

Question: Financial Aid help about Work-study?

Taxable earnings from need-based employment programs, such as Federal Work-study and need-based employment portions of fellowships and assistantships

i have work-study at my school, so do I include the tax "federal income tax withheld" or "state income tax" or none?

Answer: If you filed a 2008 Federal Tax return and included your Federal Work Study earnings for 2008 as part of your income or part of your earnings that you are including on the FAFSA are from Federal Work Study, then you need to list the earnings in this question of the FAFSA. The reason that you are asked this question is so that when your FAFSA is processed the calculation does not include your Federal Work Study earnings. You use the value from box 1 of your 2008 W-2 form that you received from the school.

Superannuation tricks for a 66-year old

Question: I live in GA, and looking to buy a house where the owner never filed for Homestead Exemption.?

His taxes were about double what his neighbor's taxes were (comparable homes). Can I file for the exemption as soon as I buy the home, or do I have to wait until a certain date?

Answer: You should be able to but you needed to file by march 15 in most cases to get it this year.

Mayor’s race changing rapidly

Just one week after the qualifying deadline, Bogalusa’s mayoral race has undergone dramatic changes.

Fantastic Opportunity

EDITOR'S NOTE

The biggest news in the U.S. capital markets in the second quarter 2010 was the conference agreement on the Dodd-Frank Wall Street Reform and Consumer Protection Act (the "Dodd- Frank Act"). The Dodd-Frank Act passed the U.S. House of Representatives on June 30, 2010, and passed the Senate on July 15, 2010. While tax had little to do with the Dodd-Frank Act, the Dodd-Frank Act will have an ...

Question: I received this in my email box. What do you think??

I received this just today. I'm not saying I agree or disagree, just wanted your opinions!

"Like a lot of folks in this state I have a job. I work, they pay me. I pay my taxes and the government distributes my taxes as it sees fit. In order to get that paycheck, I am required to pass a random urine test, with which have no problem. What I do have a problem with is the distribution of my taxes to people who don't have to pass a urine test. Shouldn't one have to pass a urine test to get a welfare check because I have to pass one to earn it for them??
Please understand, I have no problem with helping people get back on their feet. I do on the other hand have a problem with helping someone sitting on their Butt. Could you imagine how much money the state would save if people had to pass a urine test to get
a public assistance check?"

*** What's your opinions? ****

Answer: With the welfare and alcohol and drug dependent issues in my province I would agree with the post. When ever it is welfare day you see tons of overly beveraged people staggering in the streets. The thing is the children on those dependents shouldn't suffer except there are food vouchers included most of the time...

How do you stop aiding drug and alcohol abusers on welfare without hurting their children? I think drinking or doing drugs while pregnant should be a federal offence, the minute a child is born with fetal alcohol syndrome or mental retardation causes from substance abuse, the cops should slap cuffs on the mother and charge her with child endangerment and attempted murder depending on the severity of the mentally disabled child. Where in the world does it give you the right to destroy a child's life before its birth? We have so many children born every year in my province with mental retardation cause from their mother drinking excessively or doing drugs while pregnant. The mother should be held accountable for destroying their children's life.

Real ID Online? New Federal Online Identity Plan Raises Privacy and Free Speech Concerns

The White House recently released a draft of a troubling plan titled " National Strategy for Trusted Identities in Cyberspace " (NSTIC). In previous iterations, the project was known as the "National Strategy for Secure Online Transactions" and emphasized, reasonably, the private sector's development of technologies to secure sensitive online transactions.

New Washington State Taxes - Will They Work?