Happy Squirrel Appreciation Day http://christywisty.tripod.com/info.html
Happy Birth Anniversary Wolfman Jack http://www.radiohof.org/discjockey/wolfmanjack.html
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*** Ask TaxMama Volume 7, Issue #292 January 21, 2005 ***
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Deadlines LOOMING - http://taxmama.com/taxcalendar.html
01.31.2005 Send W-2s/1099s to recipients
01.31.2005 File Quarterly/Annual
Payroll/Sales Tax Returns
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Dear Family,
Hope you all had a lovely week and enjoyed President Bush's inaugural address. He said nothing of substance this time around. Lots of generalities and big, puffy sentiments.
At least he didn't make any new tax promises to confuse the tax laws any further. Let me tell you, I am having serious trouble trying to keep up. The last time we had such extensive changes was in 1986, under Ronald Reagan, who completely revamped the Internal Revenue Code of 1954.
Despite Reagan's overhaul, I suspect that Bush will go down in history as the president who brought about the greatest changes to the tax code, with all the little changes, refinements, revisions and reversions taking place during this administration - and he has four more years to go! Whew!
For those of you who like to test your financial skills, we've got a little quiz for you to play with. http://taxmama.com/Articles/financequiz.html
If you're thinking of doing your own tax return, TaxMama's TurboTax center is now live. Please, try your hand at it. The early-bird prices are in effect. http://www.turbotax.intuit.com/welcome/common/landingpage.html?source=giftec
Remember, if you have to send 1099s out to people, NOW is the time to get your act together. They must be sent out by the 31st. You've got a week. DO IT!
OK, time to go,...and for those Pros who are wondering, you will get a newsletter today - or tomorrow!
Best wishes,
Eva Rosenberg, EA
Your TaxMama is watching...out for you.
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From: Largo, Florida
Dear TaxMama,
I am retired and and have income some income from investments. In addition, I receive Social Security checks.
How much of my SS is subject to tax?
Thanks,
Alan
Dear Alan,
I dunno. This is a trick question, right?
Your taxable SS is based on your total taxable income. It's also different if you're married or single.
So, you've given me no tools to answer your question.
In general, though, SS income becomes taxable if your total income is $25,000 ($32,000 if married) or over.
When it IS taxable, up to 80% of your SS income is added to your other income.
You can read more information about this - and see IRS worksheet to figure out what part of your SS benefits will be taxable.
Best wishes,
Eva Rosenberg, MBA, EA
http://www.TaxMama.com
---------------------------------------------------------------- Dad's Broke ----------------------------------------------------------------
From: Scottsdale, AZ
Dear TaxMama,
My father has back taxes owed from 1099's in 1998, 1999, and 2000.
All returns have been filed no later than 2002, so the statute won't run out until 2012.
He is 68 and only collects Social Security. IRS collectors have filed a lien and want an offer in compromise ASAP.
Can he obtain a non-collectible status?
Please help, as I am trying to do something for him quickly.
He has barely enough money to live on.
Jeff
Dear Devoted Son Jeff,
Why does Dad have so little to live on? Don't you help him? He took care of you while you were growing up, and going to college,... and whenever you needed some money.
But, that won't affect his financial status for IRS collections. So, let's look at what IRS will ask:
Does your dad own his home?
Does it have equity?
If it does, IRS will want that money, You won't get an offer in compromise.
If dad is renting, on the other hand, and only has Social Security to live on, then tell IRS. Give them his complete financial information on the phone. They will put a hold on collections for 6 months to a year at a time. They will review his status periodically.
If ever has more income, they'll want to get some payment. If not....once ten years passes, he'll be off the hook.
If, heaven forbid, dad should die, and he still owes the money - pay the immediate bills for his care and funeral, then pay IRS what they are owed.
If you don't, they WILL follow the trail of the money and collect from whoever received it. (Sometimes... they aren't always that well organized about it. )
That's my best advice for now.
Take good care of dad!
Best wishes,
Eva Rosenberg, MBA, EA
---------------------------------------------------------------- Didn't Get 1099 ----------------------------------------------------------------
From: Coral Springs, FL
Dear TaxMama,
My ex-employer never sent a 1099 last year to me. I contacted him and never got a response.
How can I file without my 1099?
Everytime I file my refund is taken away by the State for past due child support.
My ex-wife has yet to receive any money.
Who can we contact for the whereabouts of the money?
Everyone is passing the buck and redirecting us.
Steven
Oh please, Steven,
Clearly, you are totally helpless.
The first instruction I give people who want answers to questions from TaxMama is to search the site. All you had to do was enter 1099 in the site's Google search engine. It would have given you any number of answers to this same question, with specific information on what to do.
What it boils down to, Steve, is that if you're getting 1099s, you're in business for yourself.
DEAL WITH IT. TAKE RESPONSIBILITY.
That means YOU keep books and records about your income and your expenses. It's not up to your customers or clients to tell you how much you've earned.
The purpose of the 1099 is not to inform you. It's to squeal on you to IRS. That's the information IRS uses to make sure you report all your income.
As to money being taken by your state? Florida doesn't have a income tax. So it's not going to your state's tax department.
The refunds that are being taken are from your IRS refunds. Ask IRS to give you a printout of who is getting the money.
Even without it - Ask your dear ex who she filed a complaint with to get your refunds grabbed.
In general, if you ever watch the legal dramas on TV, you would know that the district attorney's office is typically the agency that goes after dead-beat dads. Even when it's initiated by Social Services or one of the Dependent Care agencies, the legal end comes from the DA's office.
Contact the Florida state attorney general's office and ask them to track down the money.
And be persistent. If you don't locate it - you'll always be in arrears.
In the meantime, you can put a stop to all these levies altogether by simply taking responsibility and setting up a payment plan to catch up on the back child support yourself.
It's amazing how nice those agencies can be if you cooperate voluntarily and they don't have to use force to extract funds from you.
Sorry if this is harsher than you'd like. But you look like some who's just sitting there waiting for life to happen to him.
Take charge of your life and get it into shape!
Best wishes,
Eva Rosenberg, MBA, EA
http://www.TaxMama.com
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MONEY FUNNIES
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An American's Plan For Peace
I see a lot of people yelling for peace but I have not heard of a plan for peace. So, here's one plan.
1.) The US will apologize to the world for our "interference" in their affairs, past & present. You know, Hitler, Mussolini, Tojo, Noriega, Milosevic and the rest of those 'good ole boys,' We will never "interfere" again.
2.) We will withdraw our troops from all over the world, starting with Germany, South Korea and the Philippines. They don't want us there. We would station troops at our borders. No one sneaking through holes in the fence.
3.) All illegal aliens have 90 days to get their affairs together and leave. We'll give them a free trip home. After 90 days the remainder will be gathered up and deported immediately, regardless of who or where they are. France would welcome them.
4.) All future visitors will be thoroughly checked and limited to 90 days unless given a special permit. No one from a terrorist nation would be allowed in. If you don't like it there, change it yourself and don't hide here. Asylum would never be available to anyone. We don't need any more cab drivers or 7-11 cashiers.
5.) No foreign "students" over age 21. The older ones are the bombers. If they don't attend classes, they get a "D" and it's back home baby.
6.) The US will make a strong effort to become self-sufficient energy wise. This will include developing nonpolluting sources of energy but will require a temporary drilling of oil in the Alaskan wilderness. The caribou will have to cope for a while.
7.) Offer Saudi Arabia and other oil producing countries $10 a barrel for their oil. If they don't like it, we go some place else. They can go somewhere else to sell their production. (About a week of the wells filling up the storage sites would be enough.)
8.) If there is a famine or other natural catastrophe in the world, we will not "interfere," They can pray to Allah or whomever, for seeds, rain, cement or whatever they need. Besides most of what we give them is stolen or given to the army. The people who need it most get very little, if anything.
9.) Ship the UN Headquarters to an isolated island some place. We don't need the spies and fair weather friends here. Besides, the building would make a good homeless shelter or lockup for illegal aliens.
10.) All Americans must go to charm and beauty school. That way, no one can call us "Ugly Americans" any longer. The language we speak is ENGLISH.....learn it...or LEAVE... Now, isn't that a winner of a plan/
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Courtesy of Blakely Sanford, EA in San Diego
----------------------------------------------------------------- IRS and Tax NEWS
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IRS Opens Doors to 2005 Free File Alliance
Visiting the IRS site will give you information about how to get your tax return prepared for free - and provides links to all the companies participating: http://www.irs.gov/efile/article/0,,id=118986,00.html
Be sure to read the descriptions next to each company. They each providing free services only to certain groups of people. They may be based on income, age, location, or types of forms needed.
So, before you start entering your data, please make certain you're eligible for that company's free service.
http://www.irs.gov/app/freeFile/jsp/index.jsp?