The Tax Questions Blog

Question: my husband gets a 1099 misc but is a common law employee. He doesn't even get overtime.?

He has been working for this guy for 3 years. He gets a check every friday and he gets paid hourly. His boss gives him a 1099misc form and since we would have had to pay in for self employment tax we havent filed. I dont think this is fair, he isnt self employed. His boss just labels him that way and doesnt pay him over time. Theyre in construstion business., I found on the irs site that he is a common law employee. if we file this way will his boss get in trouble?

Answer: Your husband would have to file a form SS-8 with the IRS asking for a determination of whether he's an employee or a contractor. Assuming that they find in his favor, you could file your tax return as an employee and not pay the extra for self employment tax. And yes the IRS would go back to his boss on this.

I hope you aren't saying that for the whole 3 years, you haven't filed taxes because of this situation - that sounds like what you said. If so the IRS will be contacting you soon - you'll still owe most of the tax, all of the income tax and about half of the self employment tax.

Deputy Sheriffs in Pa. Defend Large Bonuses

The county last year paid more than $180,000 to deputies for driving their own vehicles. A newly hired controller says he will stop paying the bonus compensation.

International taxation is a two way channel of extracting tax from the corporate houses based locally as well as globally. Under this scheme, the tax can be subjected to local agendas of individual countries along with offshore taxation all relating to extraterritorial income. As per government rule books, the "limitation" rules include all forms of territorial, residency or even exclusionary system. But, in the process of mitigating the harass tax laws most governments have built up a hybrid system that holds characteristics of two or more. Yet, you can't assume things on international basis at this aspect. The laws of the land differ completely as per the owner of the individual land.

Thorough insight of International Taxation concept

Many times the corporate houses are subjected to double taxation concept- same income is taxed by different countries. And, at other times there is no taxation- where the corporate house has to pay tax to no country. It is not luck that plays role here. Instead, the individual corporate houses extract clauses from the rule book of the individual government itself and save tax from the prying eyes of jurisdiction in counteract! You are subjected to tax on local as well as worldwide income. At many times you get tax exemption or reduction or foreign credits, if you are paying taxes to other jurisdictions as well.

Online professional help

Most of the people shift or re- characterizes income, so that they can reduce taxation. But, you have to go through several strict rules during the process of shifting income among the commonly controlled parties. These rules are epithet as "Transfer Pricing Rules". Locally based businessmen have different rules to follow. The complicacy is nevertheless in any case, but, gets more twisted with the multinational sectors. These sectors have to deal not only with individual countries, but also the local law of land of the other country as well that has signed common treaty with local government. So it's no man's land in the complicated world of tax. Big and small businessmen adapt professional helps, most of whom are easily available online. These advisories are professionals with expert knowledge of the financial and tax and law related domains. They are chartered accountants, auditors and tax advisors. Use their expert advises to save your hard earned money from the grueling hands of taxes.

Tax proceedings still a concern for businesses

The World Bank issued its report Doing Business 2010 last September, ranking the business climate in 183 economies worldwide.

Strongest monkey in the world [Vs] two Tigers

Question: In Canada, Would it make sence to not work extra hours to try stay within a lower tax bracket?

if so where can one find info on these secret tax brackets?

Answer: I wouldn't think so, since taxes are always a percentage of your income, and they are never more than 100%. Therefore, even if you are only keeping 60%, that is still money you didn't have without working the extra hours. Sometimes it appears like the tax rate is really high when you get some extra money during a pay period because the tax tables are set up to assume that you are making money at that rate of pay for the entire year, but if too much tax is taken you'll always get it back when you file your return.

If you are currently receiving government subsidies, then you might start losing some of those social benefits, or having them reduced, though. Purposely keeping your income low enough to receive these unreduced benefits(GST credits, CCTB), is generally self defeating, in my opinion.

Here is a link to the Tax brackets and the rates at which the GST credit and CCTB start to be reduced at:

http://www.cra-arc.gc.ca/newsroom/factsheets/2006/dec/fs061220-e.html

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Press Release / News

Americans of all ages and income brackets continue to grow increasingly unhappy at work-a long-term trend that should be a red flag to employers, according to a report released today by The Conference Board.

How Tax Brackets Work

Question: Your opinion on my idea for reducing the federal deficit?

Everyone is worried about the federal deficit and no one wants to raise taxes. Many people also complain about the fat paychecks that people on Wall Street get but raising taxes on the wealthy alone won't solve the problem.

How about this for a solution: start charging a minimal fee (say $0.10 per share) on ever share traded at all of the major exchanges. Shares under a certain amount could be exempt to discourage share splitting just to avoid the fee.

Rationale - The US markets trade hundreds of billions of shares every year and the SEC and other government agencies spend billions of dollars to police this activity (although poorly) and the many of the people paying for it (tax payer) never benefit from the activity.

By the way, don't just say that the capital gains tax covers this. Brokerage houses make money whether their client makes money or not. Likewise, the SEC still has to oversee the activities whether the market is up or down.

Answer: Good idea, the head of the NYSE makes $200,000,000 a year, they can afford 10 cents a share.

The Federal deficit is very real, it's no different than a credit card account, and the interest payment MUST be made every month.

Gilbert mulls relationship with nonprofits

Economic difficulty and political philosophy are forcing Gilbert to rethink its relationship with East Valley nonprofits, some of which have received financial support from the town for years.

CREDIT COUNSELING and DEBT CONSOLIDATION VIDEO: What you need to know before you sign up

Question: can we filing taxes jointly while separated?

My spouse and I are legally separated, I am wonder if we can still filing jointly because it will lower our taxes. Is it possible?
Based on what you said it won't effect our divorce plans.

Answer: Absolutely, if you are married, you can always file "married filing jointly," regardless of where you live or if you're seperated. There are no legal or tax problems with filing this way, so you don't have to be worried.

Usually, people who are seperated want to file "married filing seperately" because they can't stand one another. Unfortunately for them, they can only possibly file seperately if they have lived in seperate residences for at least one full year.

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ANTHONY - The burned out remains of nearly a block of businesses in downtown Anthony, destroyed by a ...

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