The Tax Questions Blog

Posts Tagged ‘return’

Question: Does my income affect my FAFSA?

My parent's taxable income is only $5,000.00
My income is $28,000.00
I'm 19 years old and wanting to go back to school. I'm still considered a dependent student.

Here's my questions...

I filled out a FAFSA application when I wasn't making money and my EFC (estimated family contribution) was 0. Technically my EFC hasn't changed. Is the FAFSA completely based on my EFC or will income decide the amount I can get for grants, loans, etc??? Or does my income somehow effect my Estimated Family Contribution?

Thanks for the help!

Answer: Your income decides your EFC.

The reason why it hasn't changed is because you are still considered a low income family since your parents aren't making money, and your income is still below poverty level when you add your family members.

However, once you turn 24, if you don't have any children or dependents, with 28k, your efc probably going to be up in the 8 or 9 thousands and you won't qualify for pell.

It's Never Too Early To Start Saving

The earlier you begin investing, the more stable your future will be in the short and long term.

Question: Will I qualify for a 2009 tax refund if im receiving unemployment?

Im currently receiving unemployment benefits from the state of california ive been receiving benefits since june of this year I did work 5 months this year bringing in $10180.00 which has been taxed. from june till dec. 31,2009 I will have received a total of $6951.00 which has not been taxed. I understand the first $2400 is not taxable but there after is. I claim head of household,myself and my child who is under 13 so that's 3. I didn't pay childcare expenses this year, I don't own any property I receive child support which ive only collected $200.00 for the entire year and haven't made any donations Worth more than $5000. So Im wondering do I qualify for a refund or will I owe uncle sam I hope not cause im out of work.

Answer: Go to www.irs.gov or other sites like Jackson Hewitt and use their online calculators.
You may be entitled to file HOH if you pay more than 50% of the cost of providing a home for you and your child. You may be entitled to the child tax credit and to EIC. You are NOT entitled to take 3 exemptions, just two under stated facts. You're right that the first $2400 of unemployment is not taxed, but the rest of it is. But with your info above, you have no tax liability. The unemployment compensation received counts in your AGI and may impact your ability to receive EIC, which is based only on your earned income, but limited by your total income.

Fitch Rates Grand Prairie ISD (TX) Series 2011 ULT Bonds 'AAA' PSF; 'AA' Underlying; Outlook Stable

NEW YORK--(BUSINESS WIRE)--Fitch rates the following Grand Prairie Independent School District, Texas' (the district) unlimited tax (ULT) bonds: --$45 million school building bonds, series 2011 'AAA'. The rating is based on a guaranty provided by the Texas Permanent School Fund (PSF; Insurer Financial Strength rated 'AAA' by Fitch). In addition, Fitch assigns an underlying 'AA' rating to the ...

TYT Episode 10/28/09

Question: Wages earned by a worker at a casual fast-food restaurant are taxable nontaxable?

13: Wages earned by a worker at a casual fast-food restaurant are
A. Taxable
B. Nontaxable
--
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14: Tips earned by a server in a fashionable restaurant are
A. Taxable
B. Nontaxable
--
--

15: Overtime pay earned by a construction worker for working extra hours to complete a project on time is
A. Taxable
B. Nontaxable
--
--

16: Bonus given to a salesperson for making the most sales during the month is
A. Taxable
B. Nontaxable
--
--

17: Free lawn care service for a month for a mailroom employee who developed a handbook for new employees is
A. Taxable
B. Nontaxable
--
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18: Interest income is earned on all of the following except
A. U.S Saving Bonds.
B. rental properties.
C. deposits in savings accounts
D. deposits in credit union accounts.

Answer: All income, from whatever source derived is taxable. Thus, in questions 13 through 16, the income would be taxable.

In question 17, I am assuming that the lawn care was somehow given in exchange for the rights to the handbook. If this is the case, then the value of the services would also be taxable.

In question 18, all yield interest income except B, rental properties, which would yield rental income. However, the interest income on a US savings bond can be tax free under certain circumstances.

Tips before converting to a Roth IRA

I recently wrote about a change in the tax code allowing high earners to convert their traditional IRAs and similar workplace retirement saving vehicles to Roth IRAs.

Silver is UnTaxable

Question: Do I need to report a workers comp settlement as earned income on my California unemployment form?

I just received a check for a workers comp settlement relating to an on-the-job injury some time ago. Do I report this as earned income on my California unemployment form? It's not earned income, nor is it taxable income, but I want to do the right thing here. Any advice?

Answer: No it is not earned income but an insurance settlement.

Fitch Rates Jacksonville, FL's Special Rev Bonds 'AA'; Outlook Stable

NEW YORK--(BUSINESS WIRE)--Fitch Ratings assigns a rating of 'AA' to the following Jacksonville, Florida special revenue bonds: --$51,690,000 series 2010A-1; --$40,865,000 taxable series 2010A-2 (direct payment Build America Bonds). The Rating Outlook is Stable. The bonds are scheduled to sell via negotiation on Sept. 15. In addition, Fitch affirms the following ratings with a Stable Outlook ...

Tips from the IRS-Unemployment Compensation

Question: How do I claim a tax return the money that I've made on eBay?

I work a regular full-time job and normally file a W2 form on my taxes every year with zero dependants. This year however, I began selling designer handbags on Ebay in November and have since grossed about $10,000 more or less. With this additional income, how do I claim a return on my taxes for this. It is alot of money and I want to report it to the IRS because I dont want them knocking my door down later. Is there another form that I have to file instead or do I keep using the same W2 to file both incomes? I have no idea about this stuff and tax season is coming up so I definetly want to be prepared. Please advise! Thanks!

Answer: Get Publication 17 off of the IRS' website

Schedule C is the way to go as others have said. You have some deductions to offset some of that $10k such as any PayPal fees, EBay fees, cost of the bags themselves, shipping and packaging etc. Think of all those costs you incurred that you would not have if you were not selling on E-Bay. I would read the instructions to that form.

Consider getting Turbo-Tax. They will walk through the form. Based on $10K in income, I would do my own return then take it to a CPA for a quick review for missed items.

How investors can ease the growing tax bite

BOSTON -- If you're just beginning to think about this year's tax return, it might seem premature to consider tweaking your investment strategy for your next dance with Uncle Sam in 2011, and beyond.

Tax Tips: First Time Filing a Tax Return? January 2010