The Tax Questions Blog

Posts Tagged ‘grants’

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: Transferring custodial accounts?

I would like to transfer my 2 kids custodial bank accounts from a bank to their custodial brokerage accounts. The bank will only let me transfer the money to my personal checking account then I will need to write a personal check and deposit it into their brokerage accounts. Will this cause a taxable event because of the “Uniform Gift to Minors Act”; the amounts will be over $15k each?
Note: Bank will ONLY allow transfer to my personal checking, they rejected a direct transfer.

Answer: Have the brokerage account managers arrange the transfer directly into the brokerage account.

• Despite poor economy, downtown investment reaches $9 million

By Emily Ford eford@salisburypost.com Not only can Stephanie Potter advise you on pairing wine with food, she can tell you what beer to drink with grilled salmon and corn on the cob. Founderâs Old Curmudgeon. She knows this because she tested the ...

D-Day : The Normandy Landings HD

Question: How do I calculate my post tax income?

My taxable income is $40,000, residence is in MD and I'm single. Not accounting for Health/dental insurance contribution. I work for a non-profit organization if that makes any difference.
By post tax income I mean after paying federal and state taxes, how much disposable income will I have in my pocket.

Answer: I would calculate it as follows:

Take the selling price of the posts and subtract the purchase price
of the posts. This is your profit and is fully taxable.
Add this to your taxable income. You can also deduct part of
your home as an office if you spend enough time there with post
purchasing and selling matters. Be careful! The IRS is very strict
regarding the home/office deduction.
Just out of curiosity what kind of posts are you selling?

TD Bank Financial Group Reports Third Quarter 2010 Results

This quarterly earnings release should be read in conjunction with our

Getting Help - Ch. 3 - Basic Sales and Use Tax

Question: 2-Re: grants under the Americans with Disability Act. Does anyone know if grant money is taxable?

I desperately need to apply for a Government Grant in order to purchase a
wheel chair accessable van so I can get out of this house whenever I want/need to, without imposing on others. But, if grant money IS taxable, I may have to re-think this whole thing, as I am surely not prepared to rack up a huge tax bill, as I am still paying-off the balance I owe for 2002.
Thank you for any information you can give me on this subject.

Answer: The same answer as your first question -- the ADA is a law that guarantees the rights of the disabled. It is not an organization that grants money to the disabled. If you need money for a van / van conversion, you should talk to your state or county occupational therapy group or social services organization. Money for such services is generally administered at the state or local level.

ECHO projects by community

Since 2002, more than $48 million in Volusia ECHO grants has been divvied up among dozens of communities and interest groups. The money comes from a 20 cent tax on every $1,000 of taxable property value. The owner of a $150,000 home with two $25,000 homestead exemptions pays about $20 a year.