The Tax Questions Blog

Archive for the ‘Taxable Income’ Category

Question: calculating federal, state, and city taxes?

Find the federal, state, and city taxes on the taxable incomes of the individuals listed in the table if the federal income tax is 20% of the taxable income after first deducting the state and city taxes; the state income tax is 10% of the taxable income after first deducting the federal and city taxes; and the city income tax is 5% of the taxable income after first deducting the federal and state taxes.

Taxable incomes: Mr. Dahlman $96,700, Mrs. Farrell $48,350

I already figured the taxes out for Mr. Dahlman and I am confident I arrived at the correct answer.
Here's how I did it. Let x be federal tax, y state tax, and z city tax.
5x+y+z=96,700
x+10y+z=96,700
x+y+20z=96,700
x=17,100, y=7,600, z=3,600

I don't really like how I got my answer and to be totally honest I am confused as to the steps I've taken to get the answers I have. Please show me how to do the income taxes for Mr. Dahlman in a different way than I figured it out if possible! Thanks!

Answer: Try the homework section or ask a shorter question. I will help you understand how to do something, but not just do it for you.

1. Income Tax

1.1.1 Income Tax Rate. The general statutory corporate income tax rate for entities incorporated in the Dominican Republic, branches or permanent establishments of foreign companies is 25%.

Apr 15, 2009 - 9/14 - Dan Walkow

The Curious Case of the New Zealand ETF

Low Sweat Investing submits: New Zealand always seemed to me like a nice, faraway corner of the world, filled with sheep and scenic views. So I was both fascinated and puzzled by the fanfare surrounding the recent launch of the iShares MSCI New Zealand Investable Market Index ETF (NYSEArca: ENZL - News ). I figured there must be more to it than lamb chops and landscapes, and couldn’t help ...

Question: Filing jointly--will I have to pay less?

I figured that I will owe over $1000 to state and federal combined. I have filed 1 married. My husband has made a lot less than me this year as he is now a student and recieved the GI bill and military settlement which is all non-taxable. Will this help me in any way to file with him if my income is substantially larger than his?

Answer: Welcome to the real world of taxes. To make this as easy as possible, just do this. Have him figure out his return, you figure out yours. Add it together. Then you file jointly, and add it together. Whichever is larger for you, take it. Note that there are many different things you can do. You can file as head of the house or even claim him as a dependent. So take a little time and plug in those different things and you might make a little extra cash.

Good Luck!!

CONSIDERATIONS FOR TAX-QUALIFIED RETIREMENT PLANS

In accordance with the IRS cyclical submission process for submitting a tax-qualified plan for a determination letter as to its continuing tax-qualified status under Section 401(a) of the Internal Revenue Code of 1986, as amended (the "Code"), employers in "Cycle E" must submit their tax-qualified plans to the IRS no later than January 31, 2011. The staggered submission system is based on the ...

Question: Political Survey Question 8 - Do you think the current tax system is FAIR?

Tax Brackets 2007
Taxable Income ($) Tax Bracket (%)
Single Filers 0 - 7,825 10
7,826 - 31,850 15
31,851 - 77,100 25
77,101 - 160,850 28
160,851 - 349,700 33
349,701+ 35
Head
of Household 0 - 11,200 10
11,201 - 42,650 15
42,651 - 110,100 25
110,101 - 178,350 28
178,351 - 349,700 33
349,701+ 35
Married
Filing Joint 0 - 15,650 10
15,651 - 63,700 15
63,701 - 128,500 25
128,501 - 195,850 28
195,851 - 349,700 33
349,701+ 35
Married
Filing Separate 0 - 7,825 10
7,826 - 31,850 15
31,851 - 64,250 25
64,251 - 97,925 28
97,926 - 174,850 33
174,851+ 35

Answer: I'm fine with it , but wouldn't object to improvements .

But more importantly , I'd like much stricter regulations on who gets and how they get government aid / my tax dollars . I really liked what Tommy Thompson did for Wisconsin / Welfare years ago .

What high earners will pay if the Bush tax cuts expire

If you're a wealthy American, you've probably heard that your tax bill will be higher next year if President Obama has his way. But how much more are you really going to pay?

The Laffer Curve, Part II: Reviewing the Evidence

Question: I need money from a family member. What's the most you can "gift" to someone without paying tax?

A very nice relative has offered to help me out with a nice gift. If I accept the gift, how is it taxed? If they give me, say $20,000, do I have to declare the taxable portion as income?
Also, let's say the tax-free limit is 100$. Could they give 100$ to me and 100$ to my wife without penalty?
Okay, I think I understand. So, let's say I get a gift of $12,001 in 2008. The giver will have to file a gift tax form for the 1$. Then, this is applied to their $1,000,000 gift exclusion (now downt to $999,999). If we did this for a while and they used up the $1M, then they would pay gift (or estate, however the term) tax on it, correct?

Answer: The limit for 2008 is $12,000 before the giver has to be concerned with filing a Gift Tax Return. And yes, they can give $12,000 to you and $12,000 to your wife. If "they" are married, each person can give each of you $12,000 for a total money transfer of $48,000. In all of these scenarios, no one will have to pay tax and no one will have to file a gift tax return.

The recipient of a gift never has to pay tax regardless.

ADDITIONAL DETAILS:

You are absolutely correct...it is the amount over $12,000 that goes on the gift tax return and goes against the lifetime exclusion. A person could give 900,000 different people a gift of $12,001 in a year and would have to file a gift tax return which would eat up $900,000 of their $1M lifetime gift tax exclusion. When they die, that $900,000 goes against their estate exclusion. So, let's say that when they die, there is a $2.5M estate exclusion. Theirs would only be $1.6M because they lost $900k via gift tax.

6 reasons not to roll over your 401(k)

It's not always a good idea to take your retirement account with you when you leave an employer.

Daughters lover takes dads money father the ATM