The Federal Tax Credits Blog

Posts Tagged ‘business’

Question: Am I going to qualify for the earned income child credit?

This year I have been working for a company that pays cash, with no taxes taken out. I’m kind of worried cause next year when I file for taxes I might not qualify for the earned income child credit. I went to the H&R Block website to try their tax calculator, to get an estimate of what I might be getting next year. I put I got “another source of income “, and the results say I won’t be getting anything back, but I put “self employed” and I might be getting something back. So do I say I was self employed? Also I know I’m gonna have to pay alot of back taxes, how do I know how much I’m gonna have to pay back?

Answer: Sounds to me like you are self-employed, so that answers part of your question. It also sounds like you maybe should have been making estimated tax payments since you aren’t having taxes taken out of your pay. The “Earned Income Credit” is for earned income only, so if you enter ‘another source of income, you’re including unearned income, such as interest, grants, dividends, alimony (which is earned in my book, just not the IRS’s), and the like. These things do NOT qualify you for the EIC.
In order to know how much you’re going to have to pay back, you can actually fill out a 1040 now. You’re also going to need a Schedule C, Schedule SE, and Schedule EIC from what you’ve said here. Just use a copy of last year’s, available on the IRS website, or pick one up at an H&R Block office. This will NOT be an accurate tally for 2007, but will give you an idea of what you might owe. Another option would be to go into an office and ask a tax professional to help you figure it all out, just for this year. Once you get it straight, you might not need the assistance of a professional, although some people like to use a tax service just for the assurance that it’s done right. If this is the case, make sure you ask a lot of questions before you make an appointment, and be seen by a tax pro who is familiar with self-employment.
Have a great day – hope I helped!

The new Obama to the Chamber of Commerce: Government regulations can be your friend

The Democrat begins his make-up makeover with the American business community, preparing for 2012 and the vast sum it will take to win.

Reed Statement on Tax Relief, Unemployment Extension

Question: Adoption Tax Credits for an international adoption?

My husband and I have our dossier into China, we are going to pull out of the program due to the expected time frame. We are unable to stay in the program until the predicted year of 2017. When we started the China adoption process they told us our wait would be 12 to 18 months, we’ve already been waiting almost 4 years. During this time we’ve spent many dollars on necessary papers for the US government to have when we adopt. Is there a way that we can claim these expenses on our 2010 taxes?
We are considering it a failed adoption due to the fact that the wait is excessive, not anywhere near the expected time frame and we will both be in our upper 40′s early 50′s at that time .

Thankfully, during this time we’ve adopted two children domestically (we actually thought we’d adopt from China first.)

Answer: Sorry.

The credit for international adoptions can only be claimed after the adoption is finalized.

CORRECTION: Pöyry PLC´s notice concerning annual accounts for 2010

PÖYRY PLC Company Announcement 8 February 2011 at 11.45 a.m.Pöyry corrects a mistake in the English version of Pöyry PLC´s notice concerning annual accounts for 2010 published today. The statement of comprehensive income was …

The IRS, the Federal Reserve Bank & the Income Tax

Credit Acceptance Announces Fourth Quarter and Full Year 2010 Earnings

SOUTHFIELD, Mich. — Credit Acceptance Corporation announced consolidated net income of $47.0 million, or $1.69 per diluted share, for the three months ended December 31, 2010 compared to consolidated net income of $40.3 million, or $1.27 per diluted share, for the same period in 2009.

News Update: Dealers Racking Up Orders for General Motors Co.’s Electric Volt Car

Question: Why do people allow themselves to be overwithheld on their taxes?

By allowing yourself to be overwithheld and then getting a big refund check is like giivng the government an interest free loan all year.
On the IRS website, there is even a calculator where you can enter your expected wages, deductions, and credits to determine the number of allowances to put on your W4.
Wouldn’t you rather have that extra amount on your paycheck each week instead of waiting until tax time to get it all back in one big check?

Answer: It’s basic finance, time value of money. I would certainly prefer the money now rather than later. My husband and I calculate our allowances and any extra to withhold in order to break even. I don’t understand why people do that either. I guess it makes them feel better seeing a bigger number on their refund check. In the end, they’re missing out on lost opportunities to invest the money and earn more. Oh well, their loss.

EARTHTALK: Federal Energy Efficiency Tax Incentives

Dear EarthTalk: A number of federal energy efficiency related tax incentives expired at the end of 2010. Will any such programs remain in force and if not, are there other ways to save money on green upgrades? — Jen Franklin, Chicago, IL

Good Intentions 1of3 Introduction and Public Schools with Walter Williams

Question: Why are only 2008 New Home Owners getting the tax credit?

Please explain why new home owners from 2008 are the only ones to receive the stimulus tax credit for first time home buyers? 2008 home buyers experienced substantially lower interest rates and lower priced homes due to foreclosures and a failing housing market during this time. They also experienced buying their home with equity built in, however 2006-2007 home buyers will not be able to recoup their equity until this housing market upsides again. Who knows when that will happen? It would seem the home buyers of 2006-2007 would receive the tax credit in my eyes. I’m sure the research would show that there are more people that bought homes during this time period that have lost jobs and/or having problems paying their mortgage. The point should be made that if a family bought a house in 2008 then apparently times are not as hard as one would think for them…..

Answer: Just so you know, the tax credit IS NOT a way for the government to help the homeowners. Rather it is the government’s intention to use this tax credit to stimulate the housing market.

Obama’s Entrepreneur Problem

When the president tapped GE’s Jeffrey Immelt as jobs czar, he again showed a flawed bias for big companies over start-ups. Doug Schoen shows where the jobs are—and how to encourage them.

revised senate bailout pays for: WOOL RESEARCH, RACE TRACKS AND WOODEN ARROWS FOR KIDS! AND IT WILL COST YOU ANOTHER 150 BILLION BUCKS! CALL YOUR REP AND TELL HIM HIS FIRED IF HE VOTED(OR VOTES)YES!1-800-828-0498 & 1-202-224-3121