The Tax Questions Blog

Archive for February, 2011

Question: If your taxable income is revised downward, does this reduce the amount of national insurance payable as well?

Let's say your taxable income was thought to be 25000 pounds.
But then after completing your HMRC tax return it turns out your taxable income was only 15000 pounds after removing the deductible portions.

You would have already paid 9% national insurance on 25000 pounds (2250 pounds of NI), but your taxable income was only 15000 pounds. Since 9% NI on 15000 pounds of income is only 1350 pounds, you would have overpaid NI by 900 pounds. Is this correct? And how does one claim back the overpaid portion?
ALAN T: Really? So if someone receives a scholarship -- which is not taxable at all -- they still have to pay national insurance on it?

Answer: I thought NI was based on your taxable profits. Profits are revenue less costs therefore I would have thought if your profit is reworked downwards so would your NI be .

Guide to taxation

Welcome to our taxation guide. The following tables show some of the main tax rates relevant to farmers and landowners in 2010/11. All of the information has been kindly provided by independent chartered accountants Saffery Champness .

How to fill in your tax return

Question: Paying taxes on alimony / relocation expenses?

I am in the process of getting a divorce in NYS. We are currently working on a settlement and I was informed that alimony is considered taxable income. If my husband pays out what he owes me in one lump sum, I would like to go ahead and pay the taxes on that ahead of time before having the IRS slam me with it the following year. Would anyone happen to know how much/what percentage it would be?

Also, I am considering moving to another state after this is all over (NC). Can my relocation expenses be tax deductible? Since were I am moving would require a car (I don't drive or need to drive where I am currently located), would that also be considered an expense?

Thanks

Answer: Alimony/spousal support is deductible by the person you pays it and taxable income to the recipient. Make sure that you distinguish between payments that are part of a property settlement or child support from spousal support. The Internal Revenue Code is very specific about what constitutes alimony. For example, one qualification is that it must stop if the recipient dies because dead people don't need support. This is different than a property settlement because that would survive.

Chattanooga City Council Tuesday Meeting Agenda

I. Call to Order. III. Minute Approval.

MHI Hospitality Corporation Reports Financial Results for the Fourth Quarter and Year 2010

MHI Hospitality Corporation , a self-managed and self-administered lodging real estate investment trust , today reported consolidated results for the fourth quarter and the year ended December 31, 2010.

WKTV-NBC Ch. 2 Utica - Officials Think Canajoharie Could Lose Out

Question: funny or not?

Income tax is very familiar (and perhaps disliked!) by all who work, but many people do not understand fully how it is charged. It is an important tax to the government as it is its main revenue-raising tax, though despite that it only represents just over a quarter of total tax revenue. National Insurance and VAT come fairly close on the list in terms of importance.

Over 25 million individuals pay income tax in the UK, but not all income incurs tax. The main kinds of income upon which income tax is levied are pay, pension payments upon retirement, unemployment benefit, profits from business, income from property, bank and building society interest and dividends on shares. Income tax is not paid on certain privileged savings products such as National Savings Certificates
.The structure of income tax in the UK operates via a system of allowances and bands. All individuals have a personal allowance which is deducted from total pre-tax income in order to get to the taxable income.

Answer: You would have to work for the IRS to find any of that funny, or be on unemployment benefit.

Calif. pot dispensaries run afoul of taxman

(02-27) 11:33 PST Berkeley, Calif. (AP) -- In Northern California, few cities have worked as long or as hard as Berkeley and Oakland to nudge medical marijuana into the mainstream. But life in the mainstream brings its...

What is Business Income?

Question: I've not filed taxes these past 5 years can i still do it (i'm self employed)? And How?

This is a requirement for naturalization: "send evidence that you continued to live, work, and/or keep ties to the United States, such as:
1. An IRS tax return “transcript” or an IRS-certified tax return listing tax information for the last 5 years"

Is it possible to get this & how?

Answer: At the very least you will want to see a CPA, quite possibly a tax attorney. Talk to a CPA first, they are cheaper.

I think that you should also talk to an attorney specializing in immigration. What the INS is asking for is proof that you actually want to live in the US and take a full part in being a responsible citizen. It doesn't look like you have been doing that and in the present climate, they may have a lot of questions for you.

Are You Eligible For Some of The $37.5 Million in Unlciamed Taxes

People who did not file in 2007 could get money back.

How to Get a Copy of Your Income Tax Return from the IRS