Tax FAQ
 

Can Your State Income Tax Be A Deduction On Your Federal Taxes?

Question by van_wyhe_halen | Posted in United States

I am doing my taxes by myself for the first continually, and I heard somewhere that your state income taxes can be a write off on your federal income tax. Is that true?

Answer: If you record (see if your itemized deductions on 1040, Schedule A exceed your standard deduction, which is $10,700 for married filing union, $7850 for head of household, $5350 for single or married filing bifurcate in '07), you may deduct EITHER state and local income taxes OR your state and local unspecific sales taxes. You cannot deduct both. You make your election on line 5 of Schedule A by checking box a for income taxes or box b for prevalent sales taxes. The option to claim sales taxes
 
 

In New Mexico, Is The State Income Tax Deductible From One's Federal Tax Obligation?

Question by Jimmy | Posted in United States

I am account moving to Ruidoso and am concerned about the state income tax being an added burden ON TOP of federal income tax. I am hoping that I can take a result for the state income tax and reduce my federal tax otherwise owed.

Answer: If you tabulate, state income tax from any state can be taken as an itemized deduction. The amount is deducted from your income before the tax is calculated though, not just from your tax. Your federal tax savings will depend on your bracket. So if you paid $800 in NM state income tax and are in a 15% federal bracket, your savings on your federal recompense IF you itemize could be $120.

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Is It Illegal In NYC For An Employer To Neglect Withholding Federal & Tax Income Tax?

Question by Cherie | Posted in United States

I have worked at my job in NYC for two years. The first year I owed $900 in income tax. I then requested to have my filing rank changed to single-0. Our bookkeeper told me he did it and I accepted his word. Then this year, stagger… surprise, I owed $4,000. After some inquires, I found out that my bookkeeper was not withholding federal or position tax from my commission checks. So, to sum up: I was filled at single-1, I had a very low salary and therefore had a low tax bracket. I was paying taxes

Answer: Depending on what your job is, you might be considered an unaligned contractor, and that's why they aren't taking out taxes. Sometimes employers call people "notwithstanding" and issue 1099's when their job duties are really those of an employee, but it's very possible to legitimately be classified that way depending on your job. And your referral of commissions makes it possible although not for sure that you could be an independent contractor.

Is the person you're doing

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Why Not Replace Federal Income Tax With A Sales Tax?

Question by matthew | Posted in Other - Politics & Government

Wouldn't it be simpler and fairer? Many of the arguments toughened to support our current tax code are based on the idea that people who earn more should pay more in taxes. Would they not pay more in sales tax as well because they for the most part consume more? It would also reduce the problem of folks paid under the table not paying federal taxes, such as prostitutes, proscribed immigrants, etc wouldn't it? Of course, we can probably agree that the tax on basic food items should be cut than on

Answer: Since when did the govt ever do things unreservedly or efficiently? Plus the mind boggling tax codes allow the government more ways to redistribute according to their own little agendas.

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Is The Federal Income Tax Return Considered Taxable Income?

Question by Edward | Posted in Politics

It's sharp to believe i have a check here for $500 and I don't have to pay any taxes on it.

Are there any states where a state/federal tax return is considered taxable income? What about when Hillary is president, will this become?

Answer: No. Because it is a refund of overpaid taxes...

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More Jobs, Fewer and Lower Taxes - Applying The KISS* Principle

But it's not barely corpulent enough to pay the bills, belittle the federal difficulties, raise the restraint, and be in print to the aid of all of the people in the everybody who scarcity us. Why, because not quite half of us (some legally, some not so) pay insufficient or no federal... We fundamental to give it a try, and there would be added benefits: (a) we would be collecting taxes from all of those nation who deserve incomes that are well-deserved not reported at all, (b) the products we try to push in dialect birth b deliver markets would be more competitive,... Corporations are not the bad guys, it's the over-paid unquenchable dogs at the top that lack to be leashed and disciplined by their employers --- the shareholders, theoretically anyway. How about this for a start: all salaries above $1 million are paid in the develop of dividends on universal goods....

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