By David & Mary Mellem, EAs This Act, made Public Law 110-28 by President Bush’s signature on May 25, 2007, increases the Federal Minimum Wage and provides some tax changes as well. It can be found at the government’s web site of thomas.loc.gov by searching for HR 2206 or by going to Public Laws and […]
Tag Archives: Income tax in the United States
IRS Accepting Applications for Low Income Taxpayer Clinic Matching Grants WASHINGTON — National Taxpayer Advocate Nina E. Olson announced today that the 2008 Low Income Taxpayer Clinic (LITC) grant application process is now open. The LITC grant program is a federal program administered by the Taxpayer Advocate Service, an independent organization within the IRS that […]
Today TaxMama hears from Sal, who tells us. “In the year 2006 an employee of a non profit social service organization located in New York State received third-party sick pay directly from an insurance company. A separate W-2 showing the sick pay was issued to the employee. It shows no Federal, State or Local withholding […]
Today TaxMama hears from Karen in the Tax Parlor, who’s curious. “I’m seeing in my tax prep software, a reference to “inmate income”. Is income earned by inmates taxed or handled differently? Just curious.”
Today TaxMama hears from Fran in the Tax Parlor, who tells us. “My mother died in 2006 and received Social Security monthly, getting about $700 per month. In addition, she had investments totaling about $60,000 that paid less than $5,000. Do I need to file a return? If so, what info and forms do I […]
Today TaxMama hears from Phyllis in Iowa, who tells us: “I started a small business out of my home in October of 2005. In February of 2006 I made the business into an Limited Liability Company (LLC) with a partner. Do I need to file separate income taxes on myself and the business? If so […]
Today TaxMama hears from Peter in Florida who wants to know, “I am self employed, a sole proprietor running a one person business. Are my income tax preparation costs personal expenses? Or may I record them as business expenses?”
Today TaxMama hears from Sam in MO who wants to know, “I had a bankruptcy in 1997 from a failed business. At that time I owed employee withholding taxes which were listed on my bankruptcy. Knock on wood, I have never heard from the IRS. Were those taxes wiped clean from the bankruptcy? Same situation […]
Today TaxMama hears from Jean in New Jersey, who asks “Does a non-profit organization have to pay into unemployment compensation.”
Yesterday we talked about the tax-free life. Today TaxMama hears from Mary in CT, who feels overtaxed. She says, “Can you explain the AMT. How does one qualify for it? My husband and I have a decent combined income (we work long days and my husband works two jobs) but we also pay a bundle […]
A few weeks ago, we talked about changing IRS collection policy when it comes to divorced couples who owe a joint tax debt when they end their marriage. You can read the details here. https://taxtwist.com/article.php?varset=s:13-pm:p-se:265-e:69-a:136&SessId= Since all the questions I am getting this week relate to tax bankruptcy (MSN must have re-released that old article) […]
Today TaxMama hears from Doug, an Enrolled Agent in Northridge, CA who insists that, “The special $5,000 deduction for start-up costs spent by businesses after 10/22/2004 only applies to companies who’ve already started doing business. They can’t take the deduction the year before the business opens their doors.” TaxMama disagreed with Doug, so, it was […]