The Federal Tax Credits Blog

Posts Tagged ‘irs’

Question: How to claim 1098T tuition expense from a fellowship on Illinois IL1040?

I am a graduate student filing for myself. I received a fellowship which, according to federal rules, counts as taxable income, except for any amount used as “qualified expenses” such as tuition. On the federal 1040A I am able to, towards the end, deduct money used for tuition via the 1098T form and the Lifetime learning credit.

The illinois tax form IL1040 takes the adj. gross income from the federal 1040A, which includes the fellowship income before I deduct the tuition credits.

I cannot find in the IL1040 forms where I can claim these same qualified expenses and subtract my tuition from my income. There are special programs for parents through the college savings program if they deposit into those special accounts, but I dont have that kind of control of the fellowship money. The closest I have found is Schedule M line 14 which talks about expenses related to tax-exempt income, but I dont think that is correct.

Any help would be appreciated.

Answer: Consult somebody familiar with the Illinois tax code.

12 new state laws went into effect on Jan. 1

Gov. David A. Paterson recently announced the 12 new laws that took effect on Jan. 1. “2010 will bring with it new laws on the books in New York state.

Question: I’m going through an IRS Audit and I was wondering if there were any statue of limitation on back taxes.?

I’m being Audited for 2005 just now because I didn’t file until 2007. But I thought they only had 2 years to bring up a case on back taxes. They are also looking at opening 2006 and 2007. They are asking for an explanation for every deposit into my bank account and any unexplained (excess over what was 1099ed) will be counted as income. This is for 2005 and most of the deposits were from Home Equity Lines of Credit. They were loans and not income. My tax preparer erronously filed my return as a Real Estate Professional, but I was a Loan Officer and 90% of my income was from doing loans and not off of income properties… Since I made over $150k I don’t get to use any real estate losses as deductions for that year or 2006.

Anyone know the rules here?

Answer: The ordinary statute of limitations is three years from the date the return was filed. If you under-report your income by 25%, the statute of limitations is extended to six years. If there is fraud, there is no statute of limitations.

2009 Tax Deadline Approaches

Dec. 31 is the last day to take advantage of tax deductions for this year.

IRS TAX TIPS: Making Work Pay – Retirees (ASL, Captions & Audio)

1. Once the Singapore company has been incorporated, what are the post incorporation issues I need to consider before I can start my company business activities?

After your Singapore company has been setup, you can start your business activities immediately. However, you may need to do the following if it is applicable to you.

A. Open bank accounts. You may want to choose a bank that serves your corporate banking needs. i.e. Letter of credit, multi currency, location of the bank, banking hours, and check the other services they can offer you, etc.

B. If your business requires one or more licenses, you may need to obtain the relevant licences first before you can commence your business activities.

C. Register for Goods & Services Tax (GST) if necessary. The registration of GST is not mandatory unless your annual turnover exceeds S$1 million. We can help to register for GST, if you so require.

D. If your company activities involves import and exports of goods, you will need to register and obtain a Central Registration (CR) number. The CR number is used in all import, export and transhipment permits, certificates and any other documents issued by the Singapore Customs. We can help obtain a CR number for your company if required.

E. If you plan to hire any foreign employee including yourself, your conpany will need to apply for employment pass (EP) for that person. We can assist you with EP applications.

F. If you intend to hire local employees (Singapore Citizens and Permanent Residents) you will need to open a CPF account with the Central Provident Fund (CPF) Board and a percentage of the local employees’ salaries will be contributed to this Board on a monthly basis as part of their retirement fund. For more details, please visit www.cpf.gov.sg. We can help you register your Company CPF account and manage your staff payroll, if required.

G. You will need to decide on your company’s financial year end which can be any date within 18 months from the date of incorporation of your company.

H. You will need to keep track of your income and expenses (bookkeeping) according to Singapore accounting standards. Depending upon the volume of transactions, we can provide bookkeeping services either on a weekly, monthly, quarterly or yearly accounting basis

2. Are there any CPF contributions For Foreign Employees?

For foreign employees, CPF contributions are not required. You just need to pay the agreed upon salary to your foreign employees and that’s all.

3. Are we responsible for the personal tax of foreign employees?

No tax deductions are required either for local or foreign employees’ personal salary. The employees are directly responsible for their personal taxes.

4. What are the Documents Needed for Singapore Company Registration?

For a successful Singapore business incorporation you will need the following information and documents:

For non-English documents, an officially-endorsed translated version is required.

5. What are the Requirements for Registering a Singapore Company?
To proceed with your Singapore company formation, you need the following:
A. Company Name – For your Singapore registered company, you must avoid choosing a company name that is:

B. Paid-Up Capital – The minimum paid-up capital for setting up a Singapore company is S$1.
C. Registered Address – A local Singapore address is a requisite to incorporating your Singapore company. The registered address can be either a residential or commercial address, but not a PO Box.
D. Directors – For setting up your Singapore company, a minimum of one (1) local director is mandatory. The local director must either be a Singapore Citizen, a Singapore Permanent Resident, or an EntrePass, Employment Pass, or Dependent Pass holder.
E. Shareholders – The Singapore private limited company set-up requires a minimum of one (1) shareholder and a maximum of 50 shareholders. Foreign corporate and individual shareholders are allowed to own 100% of the shares.
F. Company Secretary – The Singapore Companies Act requires every Singapore incorporated company to have a company secretary within 6 months of its incorporation.

Wary of property tax hike

Craig Lang has a fear when it comes to state budget cutting by the governor and the Legislature. He’s scared of budget cuts eventually forcing a property tax increase by local governments.

Tax Credit for First Time Home Buyers!