The Tax Questions Blog

Archive for the ‘Non-Taxable Items’ Category

Question: Is a monetary gift received from parents taxable?

The parents are non Canadian citizens and the child is a Canadian citizen. What are the implications if the gift is for investment or non investment purposes?

Answer: Canada does not tax gifts.

Income that the gift earns would be taxable - provided that the money is not put into a tax sheltered (registered) account.

Ailing tax system and state of economy

On November 25, 2008, the International Monetary Fund (IMF) approved the $7.6 billion 23-Month standby arrangement for Pakistan, which was later enhanced to 11.3 billion in July 2009. Pakistan was committed with IMF to introduce VAT from 1 July 2010, besides a number of other reforms.

Question: Filing unemployment taxes, forgot to add it.?

Well my husband was denied unemployment, and we are appealing it. We are still getting the money from them until after the appeal. We only got 705$ for the year 2009. I didn't think I needed to claim it since we have to give their money back, but I got a form from them in the mail, after I already submitted for my tax return. I understand the first 2300 is non taxable, so will I be able to just add this income to next year? or will i have to file again?

Answer: For the year 2009 only, if no one person received received more than $2400, then none of it needs to be claimed. They send the form anyway in case you received unemployment from more than one state. (If you received less than $2300 for each state, but more than $2400 total, then you would be required to report some of it.)

Hypothetically, if there had been income that you were required to report, you would need to "amend" (change) what you already filed. You cannot add the money to next year. The money can be claimed only for the correct year. You cannot file again. You can file only once for any one year. Instead, you amend (change) what you filed using Form 1040X.

Fitch Rates NJEDA's School Facilities Construction Bonds and Notes 'AA-'; Outlook Stable

Fitch rates the following New Jersey Economic Development Authority's school facilities construction bonds and notes 'AA-':

Question: What further salary/benefits can be indicated by a W1 tax code on a P60?

Im just about to start university and received my letters from Student Finance England today. They said that further information was required; on my Father's 07/08 tax year P60 there is a W1 tax code which indicates further salary/benefits which we haven't provided evidence of yet.

What additional income could this refer to? My brother filled out the form and is away so I can't ask him! So far I've worked out what benefits are taxable but as far as I know my Father was only receiving non-taxable ones, and also he had no other job.

What could this refer to? Please help!

Answer: A week 1 code does not necessarily mean your Father had benefits in employment. There can be other reasons for a non-cumulative code, although if benefits are included in code number for the first time (or there is an increase in the previous year's form P11D), HMRC issue a week 1 code, so that the taxpayer does not have a large tax deduction in one week. There will not be any extra salary, this is all on form P60. If there are benefits, there should also be a form P11D showing what they are, and the value.
You haven't told us what the code number was, so that we can try to analyse it. There aren't really many benefits that aren't taxable. Did he have a company car, car fuel benefit, mobile phone, mortgage paid, or private health-care? Those are the most common benefits. If you can find any forms P2 (notices of coding) even for a different year, it may indicate what benefits he is receiving.

Lawson Software Reports Second Quarter Fiscal 2011 Financial Results

ST. PAUL, Minn.--(BUSINESS WIRE)--Lawson Software (Nasdaq: LWSN) announced its earnings for the second quarter of its 2011 fiscal year, which ended Nov. 30, 2010.

True News 39: The Auto Collapse - Real Causes

MFS Survey: Investors Conservative in Response to Economic Downturn

Investor behavior suggests significant disconnects exist concerning risk and asset allocation and retirement readiness according to findings from a survey conducted by MFS Investment Management® of investors with at least $100,000 to invest.

Sykes & Ray Equities (I) Ltd., Mumbai

Question: What is the difference between a taxable tip and a non-taxable gift?

I work in a residential condo- every year, the residents collect and distribute money for a "holiday find" for the employees. Would this be considered a gift or a tip, and would taxes have to be paid on it? Under what laws/rules?

Answer: It's a tip under the law, as are all monies or other things of value given to service employees by the people that they provide services for. It's given for past services rendered (and often to guarantee future services) and is NOT a gift. Since it's income it's taxable and must be reported as such.

Viewers Send In Questions For Gubernatorial Debate

WJZ viewers are sending in questions for the gubernatorial debate between Robert Ehrlich and Martin O'Malley. The debate will be held Monday, Oct. 11 at 7 p.m. On WJZ.

Equal Justice Under Law! End Affirmative Action.