The Federal Tax Credits Blog

Posts Tagged ‘calculator’

Small Business Tax Credit Calculator (Multi Company License)

Question: What will my tax liability be?

I expect to make about 20,000 by the end of this year. I have claimed single, 2 allowances. I have no dependants. I cannot be claimed as dependent either. I have only had $170 withheld in federal taxes so far, but I am worried that I may owe(thats the IRS withholding calculator says, it says i will owe 460, because my tax bill will be 783). I exempt the last paycheck and my bonus check(they come together at one time) because alot of taxes can take almost the entire check( i need that money.)
Last year, I owed $11, but that wasnt so bad. I only made around 6000 that year.

I am wondering if the Making Work Pay credit(i think it will $400 for me) will help me. Also, can I get the standard deduction($5700) and the personal exemption(like $3000 something) at the same time?

I was just wondering if any one could let me know what my actual tax liability would be after the deduction and exemptions(if any) are applied. I am 19 years old.

thanks so much!!!

Answer: You can’t file as exempt for a bonus check unless your employer breaks the law. There is a mandatory withholding rate for all irregular wages such as commissions and bonuses. The rate is 25% on cumulative payments up to $1,000,000 in a year and 35% on amounts over that. It’s nearly impossible for taxes to take most of a bonus check. The highest state tax rate is 11% (Hawaii, but in New York City the combined state and city rate tops out at a little over 12%). Social Security is 6.2%, Medicare is 1.45%. That makes the highest possible tax withholding percentage would be less than 44%.

The standard deduction ($5,700 in 2010) and the personal exemption ($3,650) are not related to each other.

An income of $20,000 would create a federal tax liability of $1,179. You would get the Making Work Pay credit of $400 so your total liability with the tax return would be $607.

I used the calculator at KJE Computer solutions for my calculation. http://www.dinkytown.net/java/Tax1040.html

I hope this helps.
Gary

Shell at MIT’s Technology Review EmTech 2010

Question: In Florida, can I claim my school expenses like books, calculator, etc as deductions on my taxes?

I’m a full time student and I would like to know whether or not I can claim my books and other school expenses as deductions for my income tax return. I’ve qualified for the hope credit over the past few years as well, but I’m not sure if is still available this year. Does anyone know what the guidelines are or of any other education related credits that I am eligible for? I am a 26 year old independent male, no children, and a full time student of senior status pursuing my Bachelor of Computer Science at an accredited public university. I could seriously use the money, so please don’t hold back on suggestions. Thanks to all in advance!

Answer: The Hope credit was only good for you to get for two years unless you were in a disaster zone.

It’s gone now anyway, and replaced by something called the American Opportunity credit. The Hope Credit was only for tuition and fees, but the AOC also allows required books and supplies. A calculator might be a stretch, but your required textbooks can be included. You can claim AOC for up to four years, including the years you claimed the Hope credit. AOC is good only for undergrad students.

There are a few additional restrictions. See IRS Publication 970 for more info. If you aren’t eligible for AOC you’d probably be eligible for a LIfetime Learning credit for tuition and fees only, not books.

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Question: is there any point in me applying for the £500 maternity grant?

hi i was just wondering if any body out there had been awarded the maternity grant even though they were not on any benefits and were not classed as being on a low income,I am currently pregnant with my third child and was not able to claim the grant with my first two due to being awarded the basic family element of tax credits,but have worked out on the tax credit calculator that after the birth of my baby i should be awarded higher than basic family element and that’s after the baby element bonus,just wondered if any one else had been lucky enough to get the grant who was in the same situation as me?
thanks for the replys,think i will apply for it but after i have had the baby,so i can get tax credits reviewed too.

Answer: My wife didn’t qualify when she was pregnant as she wasn’t on benefits…even though she was on a low income.
You have to qualify for the higher element of child tax credit to qualify as well as benefits etc.
When the baby was born she applied again (as you automatically get the higher element of child tax credit with a new baby) and she qualified. She managed to buy all sorts of bits and pieces for the baby, it really helps.
You have until baby is 3 months old to apply. direct.gov has all the info.
Good luck

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Question: tax credit question? U.K. only please?

Hi, last year my husband earned approx £18500 whilst I stayed at home with the children and took care of them. We were paid approx £3500 in tax credits over the year. This year we filled out the review pack and stated that I am now working (self employed) and our joint income would be £30000 approx. They said our award for this year would be the same as the amount hadn’t gone up or down by more than 25k. The situation has now changed and I am on my own earning £12000 roughly and I have checked the tax credit calculator online and it seems that although we have lost my husbands £18,500 the tax credits dont change? It will be a struggle on my wages and tax credits but I want to work so any ideas? Really cannot afford to get this wrong!
Cheers,
Donna.
should have said my income is £12000 before deductions.

Answer: Wish I could help you…but I think you might have better luck asking this in the tax category…good luck!

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