The Tax Questions Blog

Posts Tagged ‘income’

Question: As a student, is it better to file my taxes in Ontario or Quebec?

It's a little confusing as to where to file my taxes since I have residential ties in both provinces. I was wondering if filing in one province has benefits over the other.
I'm going to school in Quebec and on Dec 31 2010 I was living and paying rent in Quebec. However, I still have residential ties to Ontario. I keep getting different answers as to where to file from CRA.

Answer: Lala is right - the tax act uses the phrase "ordinarily reside" on December 31 (to prevent you I suppose from taking up "residence" in lower-tax Alberta on new year's eve and returning the next day). That said, your fact pattern could be interpreted to support residence in either province depending on your intentions - perhaps you plan to stay in Quebec when you graduate. Whichever way you go, use an address on the tax return in the province you're claiming residence or you'll raise flags. As to which is better - that depends on your income and personal circumstances. In general Quebec tax rates are a bit higher, but they have a lot of credits for various things, none of which I'm very familiar with, not having any clients in Quebec. You can probably find some free tax software and try both provinces to see what pops out.

Super rich see federal taxes drop dramatically

Still scrambling to file your taxes? You'll probably take little consolation in hearing that the super rich pay a lot less taxes than they did a couple of decades ago. And nearly half of U.S. households pay no income taxes at all.

File WI Sales and Use Taxes-My Tax Account

By Jason Alderman Special to the Daily Herald

I wouldn't trade the experience of raising my two kids for anything, but I must admit that when my wife and I started planning our family, we had no idea how expensive it would be.

House Session 2011-03-03 (12:03:18-13:04:18)

Question: Is English speaking taxable service? Will I need to register for service tax?

Answer: When new commercial practice is introduced, people have the tendency to share everything under service category including consultation and education, for beterment of the people by the ruling front. Even a single word reply, one has the right to raise the bill, which is seen in cities with basic reasons. This can not be prevented or discouraged unless such taxes are withdrawn. But rulers want merely revenue and financial stability of the state and not people.

Obamas report income, taxes

President Barack Obama and his wife, Michelle, reported income of $1.728 million for last year, much of it from the sale of the president's pre-presidency books. They paid federal taxes totaling $453,770 after receiving a $12,334 refund.

Tax Tips: Is Social Security Taxable? (ASL, Captions & Voice Over)

Question: FBT deduction in US federal taxes?

I was given the stock options by my employer (a multinational company) long back when I was in India. I exercised my options last year just before changing my job. In addition to the tax that needs to be paid on the gain to the IRS, I also had to pay the Fringe Benefit Taxes to my employer (as per the law in India that in case options granted when you were in India, then even though the stock is not at all traded in India, the taxes as per certain calculations must be paid to Indian govt by employer who can pass this financial burden to employee).

Does anyone know or has anyone got any experience with a similar situation? I really want to find out if there is a way I can offset what I paid as FBT to my employer (who will pay to the Indian govt), from the taxable income that I had in 2008? Time is running out for the tax filing deadline this year and so any comments/light on this topic would be appreciated !!!

Regards,
Ashish

Answer: 1040 Schedule A, foreign taxes paid.

*maybe* form 1116.

Election campaign: Liberals propose cap for tax break on employee stock options

In this year’s federal election, the Liberal Party of Canada takes aim at the tax treatment of stock options that form part of an employee’s compensation. In their 2011 platform, the Liberals have proposed capping the amounts of these stock option gains that are eligible for the 50% tax deduction.

Question: How did you learn about taxes?

I'm going to graduate college soon and start looking for a job.

I realize I know NOTHING about taxes. They should really teach you in high school or college.

I've made small amounts of money here and there and never had a full time job. I noticed on my payroll taxes were taken out. I never filed a tax return because I never knew how or thought someone would just tell me to (IRS?)

Apparently, I never needed to since I made less than $1000 most years (I can make up to $7000 apparently without paying taxes?)

I'm just wondering, did most people learn about how to pay taxes (or that you needed to) from parents, or school or what? Is there a class for this?

Answer: I started out by helping my parents to do their taxes. I collected the info and started filling out the forms. Fortunately, they had W-2 income, a little interest, a few dividends, and that was about it.

When I started doing my own taxes, it was really easy to begin with, since all I had was W-2 income and a little interest. After I got married, we bought a house, so I learned about mortgage interest and property taxes, and a few other itemizable deductions. I also learned at that time that it is extremely rare to end up itemizing your medical and miscellaneous deductions.

I had an employee stock purchase program at work, so I learned about those, along with capital gains and losses. We moved, so I learned about the moving expense deduction.

Then my daughter got a contract job with a friend of ours, so I helped her with her self-employment income and taxes. Then my wife was ordained, so I learned about the clergy tax rules.

Then I sold my mother's house for her, so I got to learn about the capital gains exemption for the sale of a residence. Then she died, so I got to learn about doing the final return for a decedent, and to deal with the one and only estate return that was necessary.

So over the years, I've learned a fair amount about taxes, but it's just a part of the whole shebang. Here on Yahoo! Answers, I answer questions I know, and avoid questions I don't.

Most of this learning was from reading the IRS forms, instructions and publications. I suggest you start with Form 1040-EZ and the instructions.

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No, the number is NOT $7000. And it depends on your filing status and whether or not you can be claimed by someone as a dependent. If you were out on your own and not supported by your parents, then you would have a $3650 personal exemption, and a $5700 standard deduction. If you don't make more than that as an employee receiving a W-2, you don't have to file. However if you earned less than that, there may still be reasons for you to file.

Things to do: Tax help

FridayTax help: Loaves & Fishes Community Pantry will offer the IRS-sponsored VITA Program, which provides free help preparing tax returns for households with a declared income below $49,000 or who are age 60 and up. Trained community volunteers are available from 10 a.m. to 2 p.m. No appointment is necessary. Loaves & Fishes is at 1871 High Grove Lane in Naperville. Visit www ...

Tax Tips: Do I Have To File a Tax Return?