The Tax Questions Blog

Posts Tagged ‘funding’

Question: Is the federal income tax return considered taxable income?

It's hard to believe i have a check here for $500 and I don't have to pay any taxes on it.

Are there any states where a state/federal tax return is considered taxable income? What about when Hillary is president, will this change?

Answer: No. Because it is a refund of overpaid taxes...

PRINCETON: Fair Tax group lining up to file lawsuit

The Princeton Fair Tax Revaluation Commission, a group of citizens who are fighting the 2010 revaluation of the Princetons, are preparing to proceed with legal action to challenge what they call unjust assessments.

Hexawise - Amazon Example, 4 of 9 - "Value Expansions"

Question: Long Term Disability Insurance Premiums - Canada?

I've researched that if the employee pays all the premiums, should they become disabled they would receive the disability income tax free in Canada. Our company has said no because they are registered as a taxable benefit plan. Is this truly the case?

Answer: your company is correct, you cannot get a tax benefit for something you did not pay for. for example, if you purchase a life insurance policy with after tax dollars the death benefit is tax free as the government would be double dipping (taxing the same money twice). you did not pay for this benefit in this case, the company did, and as such it is income in your hands and it is taxable. your disability coverage is a benefit the company gives you.

-johnny wadd

United Community Banks, Inc. Announces Adoption of Tax Benefits Preservation Plan and Related Stock Exchange

BLAIRSVILLE, GA--(Marketwire - 02/24/11) - United Community Banks, Inc. (NASDAQ: UCBI - News ) announced that its Board of Directors has adopted a Tax Benefits Preservation Plan (the "Plan") designed to protect the Company's ability to utilize substantial tax assets. This Plan is similar to tax benefit preservation plans adopted by other public companies with significant tax attributes. United's ...

Business Exit Strategy with Key Man

Question: I have an exemption for my taxes. How much should I put aside?

I am on a college fellowship that gives about 20,000 a year in addition to full tuition. I know that the tuition money is not taxable so I am only looking at the 20,000. I'd rather put the money aside than have it withheld. I am thinking that I would get taxed 15% for federal, 7% state, and 3% local to get 25% total. I am exempt from FICO taxes. Is that a good amount to keep aside?
NOTE: I AM GIVING THE OPTION TO WITHHOLD THE TAXES TILL THEN. I TALKED WITH PEOPLE AT THE SCHOOL AND THEY SAID IT WAS MY CHOICE AND BOTH WERE LEGAL.
i meant FICA ... thanks for pointing that out

Answer: FICO is your credit score. Students are exempt from FICA if they are
FICA (Social Security and Medicare) taxes do not apply to service performed by students employed by a school, college, or university where the student is pursuing a course of study. Whether the organization is a school, college, or university depends on the organization’s primary function. In addition, whether employees are students for this purpose requires examining the individual’s employment relationship with the employer to determine if employment or education is predominant in the relationship.

Keep in mind that if you owe $1000 or more at tax time you will also have to pay a penalty.

Waco news briefs for Jan. 6

See what's happening around Waco.

CRUCIFIXION FICTION Pt. 4/5

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

Question: How to report scholarship and grants on tax returns?

I'm a college student, and I'm filing taxes for the first time - and I have a question on how to file scholarships and such. I have a scholarship for full tuition and books, and then I have a Pell Grant and other need/merit-based grants which cover my room and board. So basically - I pay nothing for college, but am I supposed to report my grants as taxable income? I'm confused on how I should deal with this because including my grants as income would mean that I owe $500 in taxes - but I received that money from the government to begin with... so why should I give it back?

I didn't receive a W-2 or any forms for the grants, although I can view my 1098-T online. I know my scholarship for tuition and books is tax-free, but any insight on what I should do regarding the grants for room and board?

Answer: Qualified scholarships and fellowships are treated as tax-free amounts if all of the following conditions are met:

- You are a candidate for a degree at an educational institution,
- Amounts you receive as a scholarship or fellowship are used for tuition and fees required for enrollment or attendance at the educational institution, or for books, supplies, and equipment required for courses of instruction, and
-The amounts received are not a payment for your services.

See link below for more info!

Lake Worth commissioners grant initial approval to 1.7 percent tax-rate hike

Lake Worth commissioners grant initial approval to 1.7 percent tax-rate hike

Free Grant Money Online Government Grants That You Never Have To Be Paid Back!