The Tax Questions Blog

Archive for the ‘Taxable Income’ Category

Question: Can anyone help me with a TaxCut question?

I've gotten all the way to the end of the return where you can opt whether to e-file or not. I'm trying to e-file, but it keeps saying that I have one error that I must fix before it will allow me to e-file. However, it won't send me to the specific location of the error. Here is the message: "Inconsistency: The sum of backup withholding, withholding shown on Form 1099-G, and withholding on Social Security payments cannot be equal to or greater than the sum of taxable interest, total ordinary dividends, taxable IRA amount, taxable pensions amount, and Social Security benefits. Location: Form 1040 - US Individual Income Tax" It won't tell me where exactly the error is and I had ran error checks up until this point and it said there were no errors. I'm very frustrated. Help!!!

Answer: I discovered this too, and sadly it's a confirmed bug in their code that is due to be resolved with the Feb 6th/7th program update.

And yep, frustrated here and the alternative they offer is no big help either - paper file *sigh*

Assured Guaranty Ltd. Reports 2010 Net Income of $548.9 Million and Fourth Quarter 2010 Net Loss of $157.5 Million

HAMILTON, Bermuda--(BUSINESS WIRE)--Assured Guaranty Ltd. (NYSE:AGO) (“AGL” and, together with its subsidiaries, “Assured Guaranty” or the “Company”) announced today financial results for FY 2010 and fourth quarter 2010. The Company’s FY 2010 operating income1, a non-GAAP financial measure, was $660.3 million, a 125% increase from FY 2009. FY 2010 operating income per diluted share was $3.49, up ...

C:Documents and SettingslokeshDesktopGEPL eLearning - ELSS.MOV

Question: How are you teaching your children to stand up against corruption?

It starts by defining what is corruption and what causes its continuation. It is not always lack of good salary, poor wages - that may have started it one time in the past. If gratuity or bakhshish has become taxable in many countries, so should be such unauthorized income (once discovered) unless it is confiscated and penalized. It should start with providing unnecessary glamorous tributes to the leaders and ministers in terms of personal cash or any such monetary rewards. They may be recognized by citations, certificates or be eligible to win properly authorized and sanctioned awards in accordance with the duly recognized laws of the land.

How successful you have been in implementing such measures? Do you see a change coming up in certain sectors due to the new technological implementations?

Answer: Corruption is the way of life. Your children will not listen to you unless you give them chocolate. If a system is fool proof and avoid red tape the corruption can be avoided. Like on-line payments, call center communication and transparency in official procedures.

But if any one complains about corruption after the job has been done, it is crime, he should be hanged. The job is done after the acceptance of both parties, the government and the public. The corruption charges at this stage will stall all procedures and the national progress.

If any decision is made in parliament, the opposition is also responsible for it. They are their to prevent any mistakes of the ruling party. Coming out and shouting does not make sense.

Anworth Announces Fourth Quarter 2010 Financial Results

Anworth Mortgage Asset Corporation (NYSE: ANH) reported today core earnings available to common stockholders of $25.7 million, or $0.21 per diluted share, for the quarter ended December 31, 2010, consisting primarily of $27.1 million of net income less $1.4 million of dividends paid to our preferred stockholders.

Sovereign vs Person 1/2: /Resident/Inhabitant modified by Natural/Individual Statutory Person Traps

Question: help with w2 substitue form?

my check stub has these categories
FICA taxable benefits
FICA withheld
FIT taxable benefits

form 4852 has these categories
social security wages
medicare wages tips
advanced eic payment
ss tips
fed income tax with held
state income tax with held
ss tax with held
medicare tax withheld

under what category do i put the FICA/FIT amounts

Answer: FICA is a combination of your medicare and Social Security withholding. The SS part is 6.2% of your wages and the Medicare is 1.45% of your wages.

Anderson: Here's what you need to know about income tax rates for 2011 and 2012

The Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010, signed into law on Dec. 17, 2010, is the end result of Democratic President Barack Obama's compromise with the GOP to extend the "Bush tax cuts" set to expire at year-end. In addition to providing a 13-month extension of benefits for the long-term unemployed and extending expiring provisions, the act includes ...

Question: If I earn £50k a year gross income, approximately what proportion is clawed back by the UK taxman every year?

Because if you think about it, income tax and NI is just the start of it. When you fill up your car with petrol, you have to pay VAT. There's also Council Tax, Road Tax on your car, etc etc. When you add all that together, has anyone ever calculated what the average person REALLY spends paying tax?

Answer: While it is practical to give an answer for direct taxes, it is almost impossible to come up with a realistic figure for indirect taxation because different people spend money in different ways.

Spending on VAT will vary depending on what things you buy, as some items are VAT-exempt.

Taxes on vehicles vary: e.g. electric cars & classic cars are exempt from MVED, fuel duty depends on what and how far you drive.

Alcohol duty obviously varies according to how much, if any, alcohol you drink, same applies to tobacco and perfume duties

Council tax (which does not go to the state, it goes to the local council) varies according to location and tax band.

There are so many variable that an average figure would not mean much.

Then comes looking at the other side and working out the value of the services and indirect benefits each person is receiving from the state ............ even worse. (even something simple like finding how much more would their home insurence cost if there was no fire brigade can become guesswork),

6 tax deductions many people overlook

John Matarese shows some tax deductions that many people miss, which means you are giving money to the IRS.

Campbell defends 15% Income Tax Cuts

Question: Would this be considered taxable income?

There's a website that sells gift cards and prepaid cards at a discount. Ex. The value of a card may be $100 but only sells for $90. That's a$10 profit! If I do it every day, it's $70.wk. Since I'm not really working for the money and I'm just purchasing gift cards, would this bec considered taxable income? I was planning on purchasing a prepaid card worth $100 for$80. I would then take the prepaid card to an ATM machine and withdrawal all the money and put it in my checking account with a $20 profit. I'd do this once a day or a week. Sources?
I'm not selling the cards, just buying them at a discount and then getting the full value of them at the ATM machine.
I meant prepaid Visa debit cards.

Answer: 1. Prepaid gift cards are not refundable at ATMs.
2. You'd have to buy something with the card, then sell it to get the cash. If you buy a $100 gift card for $90 and then sell the item you bought for $91 to $100, you'd have $1 to $10 in profit. Chances are you won't be able to do that.
3. Lastly, you may be abetting someone else who is STEALING from the company. Discounted gift cards would be available to employees only. The employee is limited to using the cards themselves are giving them as gifts. Selling them on eBay is theft.

Some of the gift cards available were unwanted gift cards, but if you are buying from someone who sells all the time, that's got to be an employee.

The Biggest Money Mistakes Couples Make

Failing to talk about finances and combining money too early can cause financial stress.