The Tax Questions Blog

Archive for April, 2011

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How Does a Floating Plastic Duckie End Up Where It Does?

In Moby Duck , Donovan Hohn tracks the fate of 28,000 plastic bath toys (“rubber” ducks, frogs, turtles and beavers) across the Northwest Coast to their origins in China and even through the North West Passage. But how did these bath toys come to be spread on the shores of Alaska, Washington, Hawaii and Russia? On January 10th 1992, the Ever Laurel, a large container cargo ship, was caught in a ...

Authors@Google: Dave Barry

Question: How did you learn about taxes?

I'm going to graduate college soon and start looking for a job.

I realize I know NOTHING about taxes. They should really teach you in high school or college.

I've made small amounts of money here and there and never had a full time job. I noticed on my payroll taxes were taken out. I never filed a tax return because I never knew how or thought someone would just tell me to (IRS?)

Apparently, I never needed to since I made less than $1000 most years (I can make up to $7000 apparently without paying taxes?)

I'm just wondering, did most people learn about how to pay taxes (or that you needed to) from parents, or school or what? Is there a class for this?

Answer: I started out by helping my parents to do their taxes. I collected the info and started filling out the forms. Fortunately, they had W-2 income, a little interest, a few dividends, and that was about it.

When I started doing my own taxes, it was really easy to begin with, since all I had was W-2 income and a little interest. After I got married, we bought a house, so I learned about mortgage interest and property taxes, and a few other itemizable deductions. I also learned at that time that it is extremely rare to end up itemizing your medical and miscellaneous deductions.

I had an employee stock purchase program at work, so I learned about those, along with capital gains and losses. We moved, so I learned about the moving expense deduction.

Then my daughter got a contract job with a friend of ours, so I helped her with her self-employment income and taxes. Then my wife was ordained, so I learned about the clergy tax rules.

Then I sold my mother's house for her, so I got to learn about the capital gains exemption for the sale of a residence. Then she died, so I got to learn about doing the final return for a decedent, and to deal with the one and only estate return that was necessary.

So over the years, I've learned a fair amount about taxes, but it's just a part of the whole shebang. Here on Yahoo! Answers, I answer questions I know, and avoid questions I don't.

Most of this learning was from reading the IRS forms, instructions and publications. I suggest you start with Form 1040-EZ and the instructions.

--

No, the number is NOT $7000. And it depends on your filing status and whether or not you can be claimed by someone as a dependent. If you were out on your own and not supported by your parents, then you would have a $3650 personal exemption, and a $5700 standard deduction. If you don't make more than that as an employee receiving a W-2, you don't have to file. However if you earned less than that, there may still be reasons for you to file.

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Things to do: Tax help

FridayTax help: Loaves & Fishes Community Pantry will offer the IRS-sponsored VITA Program, which provides free help preparing tax returns for households with a declared income below $49,000 or who are age 60 and up. Trained community volunteers are available from 10 a.m. to 2 p.m. No appointment is necessary. Loaves & Fishes is at 1871 High Grove Lane in Naperville. Visit www ...

Tax Tips: Do I Have To File a Tax Return?

Question: New Tax, Effective Jan.1, 2008?

Penis Tax

The only thing IRS has not yet taxed is the penis. This is due to the fact that:

40% of the time it is hanging around unemployed
30% of the time it is hard up
20% of the time it is pissed off and
10% of the time it's in the hole

It has two dependents, but they're nuts.

Effective January 1, 2008, penises will be taxed according to size.

The brackets are as follows:

10"-12" Luxury Tax
8"-10" Pole Tax
5"-8" Privilege Tax
4"-5" Nuisance Tax

Males exceeding 12" must file under capital gains.

Anyone under 4" is eligible for a refund.

PLEASE DO NOT ASK FOR AN EXTENSION!

Issues still under consideration are as follows:

Are there penalties for early withdrawal?

Do multiple partners count as a corporation?

Are condoms deductible as work clothes?

Answer: lol

Savvy suggestion for IRS: Hire a Super Agent

Dear IRS: Well, here it is, mid April (and we all know what THAT means). I hope I am not catching you at a bad time, IRS, what with the wads of money rolling into your offices from panicked, tax-filing citizens rushing to fulfill their patriotic duty by tendering their tax contributions. And may I just assure you that we loyal, tax-paying patriots are all just raring to go when it comes to ...

Liberty Tax Service

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Birdbooker Report 179 #books

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4 Generations in the Workplace - 2

Question: Where do I enter Federal and State income tax payments in my taxes?

Is that on form 1040 or what schedule?Im a little stuck. If I paid federal and state income tax from last year, I am putting it this year. Please help!

Answer: State taxes paid or withheld during the year go on schedule A if you can itemize your deductions.
Otherwise federal taxes paid with estimated payment vouchers for the year or tax withheld from your pay or other sources go on page two of the 1040 under tax withheld or estimates paid.
State taxes paid with estimated tax payment vouchers or state taxes withheld from your pay go on the line on your state tax return for tax payments made.

J.K. Lasser's Your Income Tax 2013: For Preparing Your 2012 Tax Return $12.72 America's number one bestselling tax guide offers the best balance of thoroughness,organization, and usabilityFor over half a century, more than 39 million Americans have turned to J.K. Lasser foreasy-to-follow, expert advice and guidance on planning and filing their taxes. Written by ateam of tax specialists, J.K. Lasser's Your Income Tax 2013 includes all theoutstanding features that have made t...

The Death of the Income Tax: A Progressive Consumption Tax and the Path to Fiscal Reform $39.26 The Death of the Income Tax explains how the current income tax is needlessly complex, contains perverse incentives against saving and investment, fails to use modern technology to ease compliance and collection burdens, and is subject to micromanaging and mismanaging by Congress. Daniel Goldberg proposes that the solution to the problems of the current income tax is completely replacing it with a...

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Students offering free income tax preparation services

The Penn State Altoona Students In Free Enterprise (SIFE) team, in collaboration with the United Way of Blair County and Your Choice Federal Credit Union, is offering free income tax preparation services for low- to moderate-income Blair County...

Income Tax vs. Consumption Tax