The Tax Questions Blog

Archive for September, 2010

Question: Can you go to jail for not paying court cost?

Earlier this year I was arrested for domestic assault and was giving probation with court cost of several hundred dollars. Can I go to jail if I have zero taxable income living off food stamps in transitional housing? I am paying ever dime I make by donating plasma but its not enough to pay off the court cost by the time probation ends. I have a probation review in the next couple of weeks and am having a lot of anxiety.

Answer: Yes but it isn't likely to be enforced by that method.

Question: How to report scholarship and grants on tax returns?

I'm a college student, and I'm filing taxes for the first time - and I have a question on how to file scholarships and such. I have a scholarship for full tuition and books, and then I have a Pell Grant and other need/merit-based grants which cover my room and board. So basically - I pay nothing for college, but am I supposed to report my grants as taxable income? I'm confused on how I should deal with this because including my grants as income would mean that I owe $500 in taxes - but I received that money from the government to begin with... so why should I give it back?

I didn't receive a W-2 or any forms for the grants, although I can view my 1098-T online. I know my scholarship for tuition and books is tax-free, but any insight on what I should do regarding the grants for room and board?

Answer: Qualified scholarships and fellowships are treated as tax-free amounts if all of the following conditions are met:

- You are a candidate for a degree at an educational institution,
- Amounts you receive as a scholarship or fellowship are used for tuition and fees required for enrollment or attendance at the educational institution, or for books, supplies, and equipment required for courses of instruction, and
-The amounts received are not a payment for your services.

See link below for more info!

Lake Worth commissioners grant initial approval to 1.7 percent tax-rate hike

Lake Worth commissioners grant initial approval to 1.7 percent tax-rate hike

Free Grant Money Online Government Grants That You Never Have To Be Paid Back!

Question: For the purpose of taxable income, is a married couple counted as 2 seperate people?

Each with their own personal allowances etc?
In the UK.

Answer: Yes, long gone are the days when the wife's income was deemed to be that of her husband. They each have their personal allowances, which are not transferable one to the other, and they only get a marriage allowance if one of them was born before 05/04/1935.
If one spouse is Higher Rate, the other spouse's income was not taken into account, and the lower paid spouse gets the same rate bands as anyone else.

Greenacres meeting erupts in shouts as council rejects Pearce's call to trim car allowances, lobbying trips, charity ...

Greenacres meeting erupts in shouts as council rejects Pearce's call to trim car allowances, lobbying trips, charity fund

Question: Does a foreign student in Canada have to pay tax on his GRA and TA scheme?

I recently received an scholarship from canadian university for my MS in Mechanical Eng. The scholarship is in 3 scheme>> 1. International student awar (6000$), 2. Research assistance of 11000$ and 3. teaching asst of apprx 7000$.

are these schemes taxable? do students need to pay tax? in my country (Bangladesh), students dont have to pay tax. what is the scenario in Ontario Canada?

Answer: Look at CRA's website for International Students:

http://www.cra-arc.gc.ca/internationalstudents/

The full amount of scholarships, fellowships, or bursaries that are received by you as a student with respect to your enrolment in a program that entitles you to claim the education amount are not taxable and are no longer reported as income on your tax return.

Research grants and wages for teaching (TA) are taxable, after expenses are deducted.

http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/ncm-tx/rtrn/cmpltng/rprtng-ncm/lns101-170/104/grnts-eng.html

Next viceregal admired

WATERLOO, Ont. -- The beaming man in the dark suit worked his way with difficulty through a mob of adoring fans, stopping to sign autographs and pose for cellphone snapshots under the protective gaze of a towering bodyguard.

Question: Filing Form 2555 online.?

I was a contractor in Iraq and pass the physical presence test for filing form 2555, however when i complete the form with H&R block it still shows my full income as taxable, what gives? what am i not doing on this form?

Answer: Good Luck

VIDEO: In Shelby Township, Bernero blasts Snyder tax

Democrat Virg Bernero sparked a dispute with his Republican gubernatorial opponent on Wednesday when he claimed that Rick Snyder’s economic plan would triple the tax levied on small businesses.