Ask MetaFilter posts tagged with Tax

Robbing the Rich?

Mr. Anthropomorphism — Wed, 13 Aug 2008 18:31:46 -0800

Will Obama's windfall profits tax destroy the American economy? These days, just about every trip to my folks' house includes at least one (good) spirited Obama-McCain debate. I can almost always defend Obama, and sometimes can even evoke concessions.

However, my old man's concerns about the WPT plan don't immediately come across as unfounded. In fact, most of the informed opinon I've found runs contrary to Obama's claims (which he himself admits here).

Although I think the oil companies can and will abide a tax, my father's concern seems to be that the tax may befall other industries, who even now don't have much reason not to pull up stakes and move off-shore (e.g. automobile manufacturers). After seeing the current administration initiate domino-effect invasions and demands on our privacy, I am hesitant to discount this slippery slope logic.

I feel a little like I'm cheating by crowdsourcing this question, but the resources I've been able to turn up have been a little thin, and intelligent insight on the issue is even scarcer.

Shoud I bother with the new federal housing tax credit?

GuyZero — Thu, 07 Aug 2008 17:01:50 -0800

FinancialOpinionFilter: I qualify for the new Federal Housing Tax Credit! Yay! But since I have to pay it back it hardly seem useful. Plus there's extra hassle with taxes for the next 15 years. Should I bother claiming it?

Tax me on the River

Christ, what an asshole — Tue, 05 Aug 2008 14:14:06 -0800

Gambling and the IRS: I've been honing my poker skills and I think I'm ready to take my game to the next level: professionally. If I begin making gains at both casinos and online, what is my duty in terms of declarations and bookkeeping while filing my taxes?

Under what conditions do I need to file taxes as common-law partners?

Anonymous — Mon, 04 Aug 2008 07:20:39 -0800

I've never been quite clear on Canadian common-law taxes. I'm wondering if I have to file with my girlfriend, and what the advantages are. We've lived together long enough for 2007 (no I haven't filed yet) to count as commonlaw. She was briefly covered by my health/dental insurance from work, and made a few dental claims, as a result of our common-law status.

I didn't work much in 2007 but when I did I was heavily taxed so I imagine there is a bit of a refund in the offing.

We are still together, at the same address.

What are the advantages and disadvantages of filing together?

Tax settlement services

Anonymous — Mon, 28 Jul 2008 07:39:46 -0800

How do tax settlement services work? I owe back taxes for both Federal and State, and would love to pay it all off, but unfortunately don't have nearly enough savings.

While I'll likely work out something to make payments, I'm curious as to how tax settlement services work, and are they worth it?

Charitable Contributions, Pending Exemption and Deductability

Falconetti — Mon, 21 Jul 2008 14:45:50 -0800

If you have filed for exemption with the IRS for a nonprofit you are starting and your status is pending while they review, I understand that you can still solicit donations and generally when your exemption is granted your exempt status applies retroactively to your date of incorporation. But how are the donor's charitable contributions treated? Can they deduct the tax year they donate or do they have to wait until the tax year in which exemption is granted (if the pending period lasts until a new tax year)? Or is it also retroactive and they would have to amend their previous tax return once the nonprofit gains exempt status?

Please help me get my tax refund

Anonymous — Thu, 17 Jul 2008 09:13:53 -0800

I'm Canadian. I was lazy, and forgot to file my tax returns for the three previous years. I also lost all of my T4 slips, and some of my work was done for companies that no longer exist. Am I up the creek without a paddle? I was a pretty disgusting slob for a while (World of Warcraft, don't ask :( ) and didn't file my tax returns for the years of 2005, 2006, and 2007. I didn't owe anything in 2005 or 2006, but I have a fairly sizeable refund owed to me for the year of 2007.

Here's my problem: I'm not sure how to get my giant refund in 2007 without filing my 2005 or 2006 reports. I don't know how I can file those without either fudging the details or somehow re-obtaining my T4 slips (some of which were issued by companies that are no longer in business). Are employers obligated to send T4s to the government as well as employees? If so, can I obtain a copy?

Else, is there some way I can make a (very good-faith) declaration that I didn't owe any income tax that year, or, for that matter, skip paying it altogether, and receive my refund for 2007?

Also, slightly less important, but would still be helpful. Since the 2007 return is overdue, will I still receive my refund in full?

Thanks :D

Throwaway email - cdntax@gmail.com

What is the best financial/tax situation for a family with a kid on the way?

Anonymous — Wed, 02 Jul 2008 06:27:17 -0800

What is the best financial/tax situation for us? Kid on way, financial aid eligibility concerns. Me: grad student for 2 more years, on a teaching assistantship (this covers tuition, fees, health insurance, and gives me a $1600/mo. stipend) and with some student loans on top (less than $10k/year). I also work in the summers, but make less than $5k. I also receive research grants sometimes ($5k-$15k). In 2008, I will only have been in the country for 2 months and will have an income of less than $5k. In 2009 and 2010 I will be be back on the normal track with $1600/mo. and some loans with perhaps 2-3 months of a travel grant of ~$6k.

Him: working person making a good salary (floating around 6 figures)

New factor: baby on the way at end of year (will be on Dad's insurance and Dad's company covers childcare)

The way that we see it, here are our financial options:

(1) Stay unmarried, he claims baby on his taxes.

(2) Stay unmarried, I claim the baby on my taxes. (But would this screw up my student loan/financial aid eligibility by making me look richer?)

(3) Marry and claim kid together. (Again, would this screw up my student loan/financial aid eligibility?)

Who funds the Canadian Taxpayers Federation?

russilwvong — Thu, 26 Jun 2008 10:34:01 -0800

Where does the Canadian Taxpayers Federation get its funding? The Canadian Taxpayers Federation is often quoted in the press. Today, for example: "Our organization views government surpluses as a sign of overtaxation, and [the $20 billion in surpluses] shows that despite tax relief that has happened at the federal level, and in some cases at provincial levels, governments still take too much money from Canadians," said Adam Taylor, the taxpayers group's national research director. WHAT?! The CTF doesn't think we need to run surpluses to pay off the $500 billion in outstanding debts? (Federal debt is about 30% of GDP, provincial debt is about 20%.)

As they claim to speak for Canadian taxpayers, I'm pretty annoyed by this stance. Looking at their website (linking to climate change deniers and other conservative causes), I'm even more annoyed.

So now I'm wondering: who funds these guys? On their website, they describe themselves as a non-profit organization, and refer to a board of directors; but I don't see any reference to an annual general meeting. It looks like they've got a staff of at least 10 or 20 people. That's, what, running costs of at least half a million a year? I'm skeptical that they're funding this from member contributions of $40/year.

G-tech or Western Digital Hard Drives

captainscared — Tue, 17 Jun 2008 06:23:43 -0800

I am looking to buy 2 1T drives. I'm doing some final cut work but mostly for media storage. I'm looking at the Western Digital 1 TB My Book Premium Edition II Triple Interface ($236) and the G-Tech Q drive which retail at $445. That's almost twice the price of the western digital.
Two questions:

Which is my best bet? The g-tech or the wdc?
Are the drives differences really represented by the price differential?

Thanks.

Any word if the IRS will rate the 2008 mileage rate because of the rapid increase in gas prices?

GuyZero — Mon, 09 Jun 2008 17:59:38 -0800

Any word if the IRS will rate the 2008 mileage rate because of the rapid increase in gas prices? The IRS set the 2008 mileage rate for business car travel way back in November of last year at 50.5 cents per mile. That's still more than the price of gas, but not as much as it was back then. Has anyone heard if the IRS will raise this value? (Note: I'm not going to claim it per se, but my company ties their mileage reimbursement rate to the IRS rate)

Can some recommend a good Tax Attorney in San Francisco?

zephyr_words — Mon, 02 Jun 2008 10:40:05 -0800

Can some recommend a good Tax Attorney in San Francisco? I'm looking to consult with a tax attorney while I'm visiting San Francisco this week.
I don't know if this extra information is helpful but the questions will mainly be about Tax Havens and someone possibly revoking US Citizenship to go to a said tax haven.

Two exciting questions about Canadians earning income abroad

Anonymous — Mon, 26 May 2008 15:20:44 -0800

How do taxes work for a Canadian citizen producing creative content for an american publication? How about a Canadian providing 'e-training' to an American? I currently have a gig producing content for a subscription-based web-publication, based in the U.S. The publication is a registered LLC. I know that creative work is different from, say, contract work, but I'm still sort of confused about how it is treated, as income... I'm obviously not going to be getting a T4 or anything. In total, the income should come out to a little more then $1000 a month. How do I go about reporting this income? I'm sort of an income-tax noob, I'll concede up front.

Slightly more obscure, I also occasionally do work teaching certain computer-skills to individuals from around the world, for which they pay me hourly. The skillsets involved are fairly obscure, and their instruction commands very good compensation. As an individual, how would this income be dealt with for tax purposes? I imagine it's different from the creative work, since i'm more accurately working in a sort of consultancy roll, albeit individual-to-individual, not to a business.

In both cases, the work is done purely through the internet, with no physical interaction between parties. In the first case, the compensation would generally be via cheque; in the second it would be through something more like paypal.

What's the easiest way for me to deal with this income? Is there a simple form for this sort of stuff, or is it complicated?

What are the tax benefits of being a landlord?

Capri — Fri, 16 May 2008 07:05:18 -0800

What are the tax benefits of being a landlord? A couple of MeFi threads have mentioned that there are tax benefits to landlords. What are those? (U.S. federal taxes) (I know you're not my tax lawyer. I'm just looking for places to start my real investigation of the tax laws.) Thanks.

Can my minor children receive a gift from their great aunt that is excluded from the gift tax?

Duluth?! I Hardly Know Her! — Sun, 04 May 2008 16:08:02 -0800

Can my great aunt make a $12,000 gift to me, my wife, and each of our two kids (for $48,000 total) without incurring the gift tax? My (very generous) great aunt would like to give gifts to various extended family members but wants to be careful with the gift tax. From my research online, it seems beyond a doubt that she can give up to $12,000 per donee per year without triggering any gift tax or any obligation to report the gifts to the IRS.

The one question that I cannot find a straight answer on is whether she can give $12,000 to each of my 2 minor children and have that count separately from her gifts to me and to my wife. It seems to me that the answer is yes - I cannot find anywhere that the answer is no - but confirmation of this specific fact situation has eluded me.

If it matters, my family will use the combined money, including the kids' portion, immediately; it will not go into trust or into an account for when the kids turn older. Instead, we will use the money to fund improvements on our house that we have been deferring because we couldn't afford it. So when the money came in, I would sign my check for myself and sign the kids' checks on their behalf, deposit the money into our family's checking account, and then hand it over to a contractor.

Thanks for whatever help you can offer. I acknowledge that I should consult an independent professional and that if you are a lawyer or accountant you are not mine and you are not offering advice.

Income tax versus Fair tax....help

madmamasmith — Sun, 04 May 2008 14:32:48 -0800

I need to better understand the proposed tax systems. Mainly the fair tax or sales tax versus an income tax. I am writing a paper for school on the viewpoints of TTARA (The Texas Taxpayers and Research Ass.) and CTJ (citizens for tax justice) but cannot gain a clear idea of what each side is proposing. Obviously the republicans want the fair tax, and since TTARA is business minded, I assume they too seek the fair tax, or at least support it. But what is the Dem idea of fair taxation? Do they want an income tax? What is all this talk on CTJ about income tax cuts? I don’t have the patience to sift through all the material so I'm hoping someone can give me a basic idea of the differing positions on the matter. Mainly answer the question of who wants what and why, and who benefits most from each plan.... Also what about the working poor, do they benefit most from an income tax? Etc. Etc.

Can I immediately sell a salary-sacrificed laptop to make a profit?

obiwanwasabi — Thu, 01 May 2008 18:50:14 -0800

OzTaxFilter: What's in the tax law to stop me from salary sacrificing a new laptop then immediately flogging it second-hand (but effectively new-in-box) on eBay for a few hundred off retail and a spare grand in my pocket? For people who aren't called Bruce:

Australians can 'salary sacrifice' one laptop per year. This means that the cost of the laptop comes from their pre-tax rather than post-tax salary, and they also don't pay sales tax or fringe benefits tax. By reducing their pre-tax income, they pay less tax. The savings can be quite dramatic.

For example, a Macbook Pro might retail for $2699 - with my salary, the savings would be around 40% (ie, I'd only end up paying around $1100, a saving of almost $1600). There are fees toset it all up, but they're small (about $75, I think.)

So, could I legally get the laptop for $1100, sell it for $2100, help somebody save $600 and earn myself $1000?

May I please pay you for new license plates?

Anonymous — Wed, 30 Apr 2008 15:04:04 -0800

The state DMV won'’t let me renew my registration on my current car because I owe property taxes on the old car. Is that legal? Can the state refuse to help me comply with one law if I am potentially violating another one? In 2007, I made a good-faith attempt to renew my registration after I noticed it had expired, and was told by the woman behind the DMV counter to drive off in my unregistered car because the DMV could not renew my registration until I sorted out property tax issues with the city where I live (this is in Virginia). My license plates were no longer even in the DMV’'s computer records because of how long I had waited to attempt to renew them. The woman behind the counter offered the example that if the police pulled me over and ran my plates, the plates would not turn up. Then she sent me on my way, refusing to take the money I wanted to pay for my renewed registration. The DMV seemed to be saying that my city's tax collectors' demands outweigh a state agency's driving regulations, which is surprising.

Fast forward to the present, where my car registration has now been expired for about two years. I understand some of you are lawyers but none of you are my lawyers. Is paying the property taxes I owe on the car I no longer own my only recourse, or is there some way I can bring my current car into compliance while I deal with the old car'’s property tax issues instead of after? I have been driving on expired tags for some time, yet with a valid driver’'s license, paid-up insurance policy and up-to-date state inspection on my car. The DMV has never sent notice that my license is suspended, and the state-approved inspection service operated by my car dealership has never had a problem with updating the inspection decal on my windshield. Why can't I put a new sticker on my license plates before I drive down to pay my tax bill?

Canada Income Tax

alse — Wed, 30 Apr 2008 11:27:37 -0800

I have never filed my taxes in Ontario, Canada before. Are there any benefits to doing so even if I have no income to declare?

Know any good tax lawyers?

whitelight — Sat, 26 Apr 2008 17:52:36 -0800

Can you recommend a tax attorney in Washington State? Business taxes (Department of Revenue), specifically - but any tax attorney you've had good experience with would be appreciated!

How do I report Section 1250 Related Party Capital Gains?

Incognita — Sat, 26 Apr 2008 10:22:32 -0800

Accountant Filter: I'm a taxation student, working on a theoretical 1065 Return of Partnership Income (real tax return, theoretical situation). I've got a gain on the sale of a building that is a related-party transaction... A 70% partner buys a section 1250 building from the partnership at a very small gain. There are no recaptured gains involved, but because it's a related party, this particular situation involves capital gain treatment of the gain.

Do I report the sale on the 4797 or is it reported on the schedule D instead?

Also, are there any suggested resources that would provide me more information? I've read everything I can get my hands on, but as a lowly student, there isn't much available to me at this point!

Thank you!

How do I find a companies Fed Tax ID online?

lattiboy — Tue, 15 Apr 2008 17:57:39 -0800

How to find a company's Federal Tax ID # (in a hurry!) I went to click "finish" on the ol' turbotax and realized I hadn't entered the info for a 1099-MISC from a company (ABC Networks, Disney). I (still can't believe I) somehow lost the tax receipt since filling out all the other info and now I'm screwed. Please help (if possible/legal). Also, if this isn't possible, is it advisable to file without the number?

PS I know how stupid this is.

Taxes not done. Help.

Space Kitty — Tue, 15 Apr 2008 09:10:26 -0800

It's Tax Day already?! Help. California resident. Haven't filed either my state or federal taxes. I tried to file an extension last night, but if I had the figures they were asking for, my taxes would already be done. (In addition, tax is a language my brain utterly refuses to understand.)

I'm not asking anyone here to be my accountant, but I can't be the only procrastinator on AskMe. Advice? Anyone?

Penalty for not filing U.S. income tax, if one will receive a refund?

lorimer — Tue, 15 Apr 2008 09:09:30 -0800

U.S. tax question: if I'll definitely be receiving a refund rather than paying tax, what will happen if I neither file nor file an extension by the end of the 15th? (Will it just mean that I won't receive my refund until I do file -- or will it mean a fine/fee that reduces my eventual refund?)

Excessively taxing a bonus?

leo. — Mon, 14 Apr 2008 17:43:51 -0800

So a friend's just received a bonus from her employer, but the bonuses seem excessive. (The taxes from that bonus exceed the total of taxes that were paid for the entire year.) Is there anything that can be done? Yes, life is dangerously close to the poverty line (yay acting!), but we knew this nice little bonus was coming in. However, we didn't expect that our 2000 bonus to be mostly gobbled up by about ~$500USD in taxes and another $125 to Social Security.

Isn't there a way we can have the employer re-issue the check as a one time gift or donation or something? I mean, it's a bonus and the taxes from that bonus exceeded the taxes that we paid for the entire year. (We got the bonus for staying with her job to train her replacements - so yes, on top of all that, unemployment.)

Logically, it would have made more sense to break up the bonus as 4 "regular" paychecks, right? Then the taxes taken out would have been less, and the employee would receive more money, and really feel appreciated, right?

Gah. Apologies for the venting and incoherent rambling. I am extremely frustrated at this situation.