Can I claim my parent as a dependent and myself as head of household?

You may claim a parent as a dependent, and yourself as head of household if the for tests above are passed.

Read more at: http://www.irs.gov/pub/irs-pdf/p501.pdf

Do I have to pay tax on US Savings Bonds?

US Savings Bond Interest, IRS and Tax

Do I have to pay tax on US Savings Bonds?

US Savings Bonds - Series E and EE Bonds, and Freedom Shares

First offered in May, 1941 Series E - US Savings Bonds, and its successor, Series EE - US Savings Bonds, offer tax deferred accumulation of interest until you redeem the US Savings Bonds. Series EE US Savings Bonds have been offered since January 1980. Series EE US Savings Bonds can be purchased for ½ their face value. The difference between the US Savings Bonds purchase price and the redemption value is your taxable interest. You don't have to report the taxable interest on your tax return until you redeem the US Savings Bonds or they finally mature. However, you can make an election to report the taxable interest on your tax return annually. Because US Savings Bonds are issued by the federal government you do not have to pay state tax or local tax on the interest. You'll receive a Form 1099-INT in the tax year that the US Savings Bonds are redeemed. Freedom Shares, which were issued between 1967 and 1970 work the same way as Series E and EE US Savings Bonds.

All of the accumulated interest on E and EE US Savings Bonds is taxable in the tax year that they mature and must be reported on your tax return. One way to avoid the tax is to trade the E or EE US Savings Bonds for HH bonds. This will continue to defer the tax and you won't need to report the tax on your tax return. Special tax rules apply for US Savings Bond Tuition Plans.

Brother2Brother & sister2Sister ~ Life Strategies Consulting

Brother2Brother & sister2Sister ~ Life Strategies Consulting

		2008 Price List * The cost of your tax preparation is based on the complexity of your returns. Additional forms for processing Retirement Income, Itemized Deductions, Education Deductions and credits, Rental Real Estate, 2-weeks, 2-days & today Fast Funds loans, plus other ancillary services will incur additional fees. Pay Yourself First...Save! Call now for a FREE phone consultation 1-510-268-1126 (back to Top) CLIENT FORMS BASE FEE (Federal and State) California Tax Return 540 and attachments FREE with Federal Return Preparation Individual W-2 1099g, IRA, 401K, 1098s 1040EZ & 540EZ $49.99 base Head of Household (includes dependent) W-2 1099g, IRA, 401K, 1098s 1040(1040A) & 540 $69.99 base Married Couple W-2 1099g, IRA, 401K, 1098s 1040(1040A) & 540 $69.99 base Amended Return 1040x and 540x $99.99 base Deductions and Credits In addition to base fee Earned Income Tax Credit (EITC) Form 8867 For low-income wage earners with and without children +$29.99 Child Tax Credit and Additional Child Tax Credit Form 8812 Up to $1,000 per child for low-income Taxpayers with children +$29.99 Child/Dependent Care Credit Form 2441 Federal tax credit for low-income Taxpayers with children. A portion carries over into a state tax credit. +$29.99 Itemized Deductions Schedule A +$29.99 Specialty Tax Preparation In addition to base fee Small Business/Contractor (Profit or Loss from Business) 1099- Misc Schedule C +$49.99 Business Use of Home Form 8829 +$39.99 Sales & Field employees (Employee Business Expenses) Form 2106 +$39.99 Quarterly Estimated Tax Return Form 1040ES +$39.99 Self Employment Tax & 50% S.E. Tax Adjustment Schedule SE +$29.99 Corporate Form 990 Form 1065 Form 1120 Call for Quote Income or Loss from Rental Property Schedule E +$49.99 Alternative Minimum Tax Form 6251 +$49.99 Other Services Financial Planning For all the stages of your life $45 hourly Accounting Services Tally receipts, ledgers, prepare statements, etc. $45 hourly IRS debt negotiation Offers in compromise, extensions, letters, calls, etc. $45 hourly FREE Tax Services with Federal return preparation fee Have just enough taken out of your pay during the year. Keep a proper W-4 on file with your employer. W-4 FREE Second Opinion Accuracy Review The Tax Man will review your already prepared and filed tax return(s) for accuracy. FREE ($99.99 only if amended) Educator (Teacher) Deduction Allows adjustment ofup to $250 in unreimbursed classroom expenses FREE California Disabled Renter's Rebate Up to $350 is available from the California state Franchise Tax Board (FTB) for disabled persons who live in unsubsidized rental housing. Not based on any income or tax filings. FREE Education Deductions and Credits 1098-E & T, Form 8863 Hope Credit,Lifetime Learning Credit, Student Loan Interest Deduction, FAFSA information form, and more... FREE Direct Deposit of Refund Form 8888 FREE Automatic Extention of Time to File Form 4868 FREE TaxMan eFile FREE FREE Online Tax prep www.irs.gov FREE

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Strapped Homeowners Gain Tax Relief

Special Web Section Unveiled for Homeowners Who Lose Homes; Foreclosure Tax Relief Available to Many

Special Web Section Unveiled for Homeowners Who Lose Homes; Foreclosure Tax Relief Available to Many


IR-2007-159, Sept. 17, 2007

WASHINGTON — The Internal Revenue Service unveiled a special new section today on IRS.gov for people who have lost their homes due to foreclosure. The IRS also reassured homeowners that, although mortgage workouts and foreclosures can have tax consequences, special relief provisions can often reduce or eliminate the tax bite for financially strapped borrowers who lose their homes.

The new section of IRS.gov includes a variety of information, including a worksheet designed to help borrowers determine whether any of the foreclosure-related relief provisions apply to them. For those taxpayers who find they owe additional tax, it also includes a form they can use to request a payment agreement with the IRS. . In some cases, eligible taxpayers may qualify to settle their tax debt for less than the full amount due using an offer-in-compromise.

The IRS urges struggling homeowners to consider their options carefully before giving up their homes through foreclosure.

Under the tax law, if the debt wiped out through foreclosure exceeds the value of the property, the difference is normally taxable income. But a special rule allows insolvent borrowers to offset that income to the extent their liabilities exceed their assets.

The IRS cautions that under the law, relief may be limited or unavailable in some situations where, for example, part or all of a home was ever used for business or rented out.

Borrowers whose debt is reduced or eliminated receive a year-end statement (Form 1099-C) from their lender. By law, this form must show the amount of debt forgiven and the fair market value of property given up through foreclosure. Though the winning bid at a foreclosure auction is normally a property’s fair market value, it may not necessarily reflect its true value in some cases.

The IRS urges borrowers to check the Form 1099-C carefully. They should notify the lender immediately if any of the information shown on their form is incorrect. Borrowers should pay particular attention to the amount of debt forgiven (Box 2) and the value listed for their home (Box 7).

The IRS also reminds lenders of their obligation to provide accurate information on the Form 1099-C. By law, the lender must send a copy of this form to the IRS. IRS follow-up contacts with taxpayers involved in foreclosure are based largely on the information reported on this form, and whether it conflicts with information provided by the taxpayer on their federal income tax return.

The IRS normally initiates these follow-up contacts by sending the borrower a notice. The tax agency urges borrowers with questions to call the phone number shown on the notice. The IRS also urges borrowers who wind up owing additional tax and are unable to pay it in full to use the installment agreement form, normally included with the notice, to request a payment agreement with the agency.

Related Item:Questions and Answers on Home Foreclosure and Debt Cancellation

IRS Statute of Limitations

IRS Statute of Limitations: Time Limits to Claim Tax Refunds or to Pay Tax Debts

Plan Your Tax Strategy Around These Time Limits
The IRS has three years to give you a refund, three years to audit your tax return, and ten years to collect any tax due. Together, these laws are called the statute of limitations. They put time limits on various tax-related actions that you and the IRS can take.

You have 3 years to claim a tax refund.
This is measured from the original deadline of the tax return, plus three years. For example, your 2004 tax return was due on April 15th, 2005. 2005 plus 3 is 2008. You have until April 15th, 2008, to file your 2004 tax return and still get a tax refund. File your 2004 return after April 15th, 2008, and your refund "expires." It goes away forever. This is called the statute of limitations for claiming a refund.

The tax code says that you have three years from the original filing deadline to claim a refund. Please file your 2004 tax returns on or before April 15th, 2008, so that your refunds are not lost forever.

The IRS has 3 years to audit your tax return or to assess any additional tax liabilities.
This is measured from the day you actually filed your tax return. If you filed your taxes before the deadline, the time is measured from the April 15th deadline. For example, you filed your 2006 tax return on February 15th, 2007. The 3-year time period for an audit begins ticking from April 16th, 2007, (the filing deadline) and will stop ticking on April 16th, 2010. On April 17th, 2010, the IRS cannot audit your 2006 tax return unless there is a suspicion of tax fraud.

The IRS has 10 years to collect outstanding tax liabilities.
This is measured from the day a tax liability has been finalized. A tax liability can be finalized in a number of ways. It could be a balance due on a tax return, an assessment from an audit, or a proposed assessment that has become final. From that day, the IRS has ten years to collect the full amount, plus any penalties and interest. If the IRS doesn't collect the full amount in the 10-year period, then the remaining balance on the account disappears forever. The statute of limitations on collecting the tax has expired.

Example of the Statute of Limitations
Let's provide an example based on a real-life scenario. Mr. Smith wants to file 6 years of tax returns: 2001 through 2006. All years he has refunds. If he files by April 15th, 2007, Mr. Smith will receive refunds for his 2003, 2004, 2005, and 2006 tax returns. His refunds for 2001 and 2002, however, have expired.

Let's change the example slightly. Mr. Smith wants to file 6 years of tax returns: 2001 through 2006. In 2001 and 2002, he could have received a refund. In 2003, 2004, and 2005, he owes. Mr. Smith cannot apply his 2001 or 2002 refunds as an estimated tax payment towards his 2003 taxes. His refunds have expired. For the 2003 to 2006 tax returns, the IRS has ten years to collect the full tax, plus penalties and interest, from the date Mr. Smith actually files the returns. If Mr. Smith has a refund for 2006, that refund will be used to pay off his tax debts.

Non-Deductible Income, yay!

Tax tips, information and tax return preparation advice

Non-Taxable Income

Don't overpay the IRS by including non-taxable income on your tax return. The following are some of the main non-taxable items of income:

* Life insurance proceeds
* IRA and pension rollovers
* Child support payments
* Inheritances
* Gifts
* Workers comp
* Disability payments if you paid the premiums on the policy. If your employer paid the policy, then the disability payments are taxable. If you paid part of the policy, then part of the disability payments are non-taxable.
* Damages for personal physical injuries. However, damages for emotional distress are taxable except for related medical expenses.
* Health and accident benefits.
* Federal income tax refund. Also your state income tax refund if you took the standard deduction on the related prior year's 1040.
* Many scholarships and fellowships are not taxable.
* Foster care payments (certain restrictions for individuals over age 18 in foster care)
* Gain on the sale of your personal residence is usually nontaxable. The gain might be taxable if you lived in the residence less than two years or if the residence has ever been used as a rental property or home office.
* Roth IRA qualified distributions.

Pay over 50% of parent expenses? Claim them as dependent and yourself as head of household!

Tax tips, information and tax return preparation advice

Seven Common Tax Mistakes

1. Had a Baby
If you had a baby last year, you need to get a Social Security number for your child before you file your tax return. The IRS will not allow you to claim a dependency exemption, child tax credit or Earned Income Credit without a valid Social Security number.

2. Head of Household
Don't file as "Single" if you qualify to file as "Head of Household." You will get a bigger refund if you file as Head of Household. If your ex-spouse claims your child as a dependent on his or her tax return, but the child lives with you, then you probably can still file as Head of Household. Also, if you can claim a parent, grandparent, nephew, niece, brother or sister as a dependent on your tax return, you can probably file as Head of Household.

3. File for an Extension
File an extension if you can't complete your tax return by April 15th. If you don't file an extension, you are charged an additional penalty of 5% a month. Many people who owe tax on April 15th make the big mistake of not filing an extension because they don't have any money to send in with their extension. By sending in an extension even without any payment, you avoid the large 5% a month late-filing penalty and only have to pay the much smaller late-payment penalty.

4. Custodial Parent
A custodial parent who has released the right to claim their child as a dependent to their ex-spouse still has the right to claim head-of-household status, the earned income credit, and dependent care credit. However, if released, the non-custodial parent claims the $1,000 child tax credit along with the dependency exemption.

5. Match Your 1099s
Make sure that your tax return numbers match the 1099s you receive from your broker, employer, or investment company. The IRS receives a copy of all 1099s issued to you so they can match what's on your tax return with what is shown on the 1099s.

6. IRAs
If you have a traditional IRA or SIMPLE IRA, you are required to receive a minimum distribution when you reach age 70 1/2. If your distribution is less than the minimum required distribution, a 50% excise tax may be imposed on the shortfall. Minimum distributions do not apply to Roth IRAs.

7. Early 401(k) or IRA Distribution
If you are younger than age 59 1/2, think twice before you take an early distribution from your 401(k) or IRA account. A 10% early distribution penalty is charged along with federal and state tax on the distribution. A large distribution will bump a taxpayer up to a higher tax bracket, so you also end up paying a higher rate of taxes on your regular income.

A Syndicated column of your own!

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Did you Know... Charities operating under $5,000 may have tax exempt status without filing for formal IRS recognition?

Public Charity - Exemption Application

Public Charity - Exemption Application


To be exempt under section 501(c)(3), an organization must file an application for recognition of exemption with the IRS. The law provides limited exceptions to the filing requirement.

The form required to apply for exemption under section 501(c)(3) is Form 1023. Form 1023 has instructions and checklists to help you provide the information required to process your application. The IRS will not process an incomplete application.

See When to File for an explanation of the deadlines for filing Form 1023.

Exceptions to Application Requirement

The following organizations are excepted from the exemption application requirement:

*
Churches, their integrated auxiliaries, and conventions or associations of churches; and
*
An organization that is not a private foundation and the gross receipts of which in each taxable year are normally not more than $5,000.

Help a charity with a discount and help yourself with a dediction

Your business may be able to deduct discounts to non-profits.

Charitable Contributions

Doing good can also be good for your bottom line. If you donate land so the local homeless shelter can build a new facility to house more people, you can write off the full market value...


But Congress recently tightened the rules for substantiating donations
of money. As of Jan. 1, 2007, cash contributions, no matter how small,
can't be written off unless you have a canceled check, bank record, or
a receipt with the charity's name and donation amount...

For property worth more than $5,000 ($10,000 for stock in closely held firms), you'll need to get a formal appraisal...

You can take the deduction for your contribution in the year that you make it...


The IRS has an online search tool that allows you to enter the name and
location of an organization and find out instantly whether it passes
muster. Go to http://apps.irs.gov/app/pub78.

Get started the right way!

Starting a Nonprofit Organization

Written by Carter McNamara, MBA, PhD, Authenticity Consulting, LLC. Copyright 1997-2007.

Adapted from the Field
Guide to Developing and Operating Your Nonprofit Board of Directors.

Applies to nonprofits unless otherwise noted.



This topic in the Library provides comprehensive advice and
materials for anyone who is considering starting a nonprofit organization.
The reader can use the free information in this Library topic,
along with other Library topics that are referenced later

Consumer Financial Services from Operation Hope

OperationHope.org

HOPE Center, Oakland

3062 East 9th Street

Oakland, California 94601

Telephone: 510 535 6700

Facsimile: 510 535 6704

email: oakland@operationhope.org

Monday through Friday 9am - 7pm

Saturday 10am - 2pm
Sunday - Closed

We The People...a recommendation

Get in touch with Ian for professional preparation of your articles of incorporation for your nonprofit, then come and see me--the tax man-- for your IRS recognition of nonprofit status filing.

The Tax Man @ b2bs2s.org ~ 1.510.268.1126

We The People Franchisee :: Oakland, CA

Address: 244 Grand Ave.
Oakland, CA 94610
Phone: (510) 452-2320
Fax: (510) 452-2324
Email: oaklandCA@wethepeopleusa.com
Hours: Day From To By Appt.
SUNDAY By appointment only
MONDAY 10:00 6:00
TUESDAY 10:00 6:00
WEDNESDAY 10:00 6:00
THURSDAY 10:00 6:00
FRIDAY 10:00 6:00
SATURDAY 10:00 2:00
SPECIAL Early mornings or evenings by appointment

PROBATE. What it is and when you need it in California.

Probate Court How to Probate a Decedent's Estate

1.

1. What is probate?

Probate is when the court supervises the processes that transfer legal title of property from the estate of the person who has died (the "decedent") to his or her beneficiaries.

Usually, you have to fill out court forms and appear in court to:

* Prove to the Court that the Will is valid (this is usually routine),
* Appoint a legal representative with authority to act on behalf of the decedent,
* Identify and inventory the decedent's property, and have that property appraised,
* Pay debts and taxes, and
* Distribute the remaining property according to the terms of the Will or to the decedent's heirs.

2. Is probate necessary?

If the person who died did not have any property to transfer, probate is usually not necessary. The deceased person’s survivors may decide to open a probate if there are debts owed or if there is a need to set a deadline for creditors to file claims.

When there is property to transfer the probate process also provides for the distribution of the estate's property to the decedent's heirs.

3. Does all property go through probate when a person dies?

No. The term "probate estate" refers to any property subject to the authority of the probate court. Assets distributed outside the probate process are part of a person's “non-probate estate.”

California has "simplified procedures" for transferring property for estates worth under a certain amount (from $20,000 to $100,000 depending on the circumstances and the kind of property).

There is also an easy way to transfer property to a surviving spouse, property held in Joint Tenancy and life insurance and retirement benefits.

To learn more about these simplified procedures, see the Simplified Probate Procedures section of this website.

4. Should I choose the simplified procedures?

Not necessarily. Talk to a probate lawyer. There may be debts or tax claims that make probate a better option for you. If there are a lot of issues to handle, going through probate allows you to pay the person who deals with the creditors and taxing authorities.

5. Do life insurance or retirement benefits need to go through probate?

No. The benefits can be paid directly to a named beneficiary. Money from IRAs, Keoghs, and 401(k) accounts transfer automatically to the persons named as beneficiaries. Bank accounts that are set up as pay-on-death accounts (PODs) or "in trust for" accounts (a "Totten Trust") with a named beneficiary also pass to the beneficiary without probate.

6. Do living trusts go through probate?

No. When a living trust holds title to some of the decedent's property, that property also passes to the beneficiaries without probate. (For more information, see the Financial and Medical Decision Making - Living Trusts section of this website.)

Keep a record of all your gambling losses for deductions against that "Big Win!"

Can I deduct gambling losses on my tax return?

Gambling winnings are taxable on your tax return. You can deduct gambling losses on your tax return only if you itemize tax deductions and only to the extent of your gambling winnings. Claim your gambling losses as a miscellaneous tax deduction on Schedule A of Form 1040. It is important to keep an accurate diary or similar record of your gambling winnings and gambling losses. To deduct your gambling losses on your tax return, you must be able to provide receipts, tickets, statements or other records that show the amount of both your gambling winnings and gambling losses. You cannot deduct or carry forward a net gambling loss on your tax return; even if you are a professional gambler. The IRS provides the following guidelines for proving gambling winnings and gambling losses that you report on your on your tax return: an accurate diary or similar record regularly maintained by the taxpayer, supplemented by verifiable documentation usually is acceptable evidence for substantiation of gambling winnings and gambling losses. In general, the diary should contain at least the following information: date and type of specific wager or gambling activity; name of gambling establishment; address or location of gambling establishment; and name(s) of other person(s) present with you at gambling establishment. amount(s) of gambling winnings or gambling losses. Verifiable documentation includes, but is not limited to, gambling tickets, canceled checks, credit records, bank withdrawals, and statements of actual gambling winnings or payment slips provided by the gambling establishment. When possible, the diary and available documentation of the placement and settlement of a wager should be supported by such documentation as hotel bills, airline tickets, gasoline credit cards, or affidavits or testimony from responsible gambling officials regarding the wagering activity.

Who has the real control?

Where are your rights?

CIA Contributes To The Creation Of The Crack Epidemic

30 years late...

An Overview of Deposit Insurance

Quick Link: http://www.vodium.com/goto/fdic/pn100318_fdic_di_2006/go.asp





FDIC: Videos on Deposit Insurance Coverage

Videos on Deposit Insurance Coverage


Macromedia Flash Player is required to view this presentation. The latest version of Macromedia Flash Player can be downloaded at www.macromedia.com/go/getflashplayer. Installation questions or troubleshooting help can be found at http://www.macromedia.com/support/flash/. For optimal viewing, a high speed internet connection is recommended.

Say Scram to Online Scams

FDIC: Don't Be an On-line Victim: How to Guard Against Internet Thieves and Electronic Scams

Don't Be an On-line Victim: How to Guard Against Internet Thieves and Electronic Scams

Identity theft continues to be one of the fastest growing crimes in the United States, and has ranked as one of the top consumer concerns for the past several years. The Federal Deposit Insurance Corporation (FDIC) has produced a multimedia presentation to help consumers protect themselves from identity theft. The presentation provides information on steps consumers should take to secure their computer and protect themselves from identity theft, as well as actions consumers should take if they become a victim of identity theft. Financial institutions are encouraged to make the link available to their customers from their websites. This presentation is hosted by Vodium.

Don't Be an On-line Victim: How to Guard Against Internet Thieves and Electronic Scams .

Member, FDIC? It matters that your investments are insured...

FDIC: Federal Deposit Insurance Corporation

The Alliance for Economic Inclusion (AEI)
March 21, 2007
The FDIC's new national initiative to establish broad-based coalitions of financial institutions, community-based organizations, and other partners to bring all unbanked and underserved populations into the financial mainstream. The Alliance for Economic Inclusion (AEI)

WaMu's Useful Retirement Savings Tool

WM Financial Services - IRA Comparison Calculator

This tool allows you to estimate the relative advantages of depositing your retirement savings into several types of accounts: a Traditional IRA, Roth IRA, or a standard taxable account. Actual contribution limits, available deductions, and tax savings may vary according to a number of factors, and you should consult a financial and/or tax professional before taking any action.

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Being covered by an employer plan may reduce your Trad IRA deduction

If you are an active participant in an employer sponsored retirement
plan, the following table provides you with lower and upper modified
adjusted gross income (MAGI) limits for 2006:

Your Traditional IRA contribution is:	If you are married, filing jointly and your MAGI is:	If you are single and your MAGI is:
Fully Deductible	Less than $75,000	Less than $50,000
Partially Deductible	More than $75,000 but less than $85,000	More than $50,000 but less than $60,000
Not Deductible	More than $85,000	More than $60,000

Catch-up contribution provisions for individuals attaining the age of 50 before December 31, 2006

• In addition to the maximum contribution limit, for 2006, eligible
  IRA holders can contribute up to $1,000 as a catch-up contribution.

An HSBC Securities Financial Advisor

will be happy to tell you more about a Traditional IRA, and whether
it's the right retirement investment for you. A world of financial
knowledge is available right at your neighborhood HSBC branch. Call
1-800-662-3343 or visit your HSBC branch to arrange a meeting.

HSBC Traditional IRAs deductible from 2006 income til 4/17/2007

Traditional IRAs

Traditional IRAs

Did you know earnings in your Traditional IRA are not subject to federal income tax until withdrawal? You may be able to deduct all or a portion of your Traditional IRA contributions (if you meet the requirements). And you can begin taking withdrawals from your Traditional IRA without any penalties when you reach age 591/2.

In addition, penalty free withdrawals can be taken for the following:

* You are using the withdrawal for a qualified first home purchase
* You are using the withdrawal to pay certain higher education expenses
* Certain conditions of unemployment or qualifying medical expenses
* The distribution was a result of disability or death

2006 Traditional IRA Eligibility Requirements:

* You are not age 701/2 in the year the contribution is made.
* You have earned income equal to the amount you contributed, up to a maximum of $4,000 ($8,000 combined for spouses if you file a joint return) per year.
* You may make an annual contribution to a Traditional IRA by the due date for your federal income tax return for the year. For tax year 2006, the deadline is April 17, 2007.

2006 Traditional IRA Contribution Limits

If you are not an active participant in an employer sponsored retirement plan, such as a 401(k), your entire contribution is tax deductible.

If you participate in an employer sponsored retirement plan, your Traditional IRA may be completely or partially deductible. Deductibility depends on the amount of your income.

Section 125 Cafeteria Plans...a flexible spending employee benefit

Cafeteria Plans

II. Types of Flexible Benefits or Cafeteria Plans


A. The following sets forth the major types of Flexible Benefits or Cafeteria Plans being used by employers today:


1. Pre-Tax Conversion Plan - a plan where the employees are covered by a contributory medical plan. Instead of the employee contributions being after- tax, the employee contributions are converted to pre-tax by complying with the rules of Internal Revenue Code Section 125 on cafeteria plans.


2. Multiple Option Pre-Tax Conversion Plan - a program where the employee can select an indemnity plan and one or more HMOs or PPOs with differing amounts of employee contributions. If the program complies with Code Section 125, the employee contributions to the selected plan will be pre-tax rather than after-tax. If the participant chooses not to participate in any medical plan, the employee does not receive any payments from the employer but does get to keep his own money.


3. Medical Plan Plus Flexible Spending Accounts - In addition to being covered by a medical plan, the employer allows participants to establish a medical flexible spending account. In most cases, the contributions to a flexible spending account are exclusively from the employee on a pre-tax salary reduction basis. The amounts credited to a flexible spending account are then used to pay amounts which are not covered by the medical plan such as deductibles, co-insurance amounts or cosmetic surgery. In addition, the employer can provide an option to have salary reduction amounts contributed to a Dependent Care flexible spending account.


4. Employer Credit Cafeteria Plans - a program where the employer gives the employee a specified number of credits which the employee can "spend" on different employee benefit plans or contribute to a flexible spending account. Usually, there are sufficient employer credits for an employee to choose a low-cost medical plan and a base amount of life insurance coverage without requiring the employee to contribute his own money. To the extent that the employee chooses a more costly benefit package, he will have to make contributions out of his own money, usually through a pre-tax conversion feature. These plans can be divided into two types:

a. those which allow an employee to elect not to be covered by any medical plan; and

b. those which do not allow an employee "to go naked."

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The TaxMan Cometh ~ Unclaimed Refunds!

For Support in filing past years' returns contact the Tax Man at
510-268-1126 or self-schedule your appointment online at
http://mybookingcalendar.com/b2bs2s



IRS Has $2.2 Billion for People Who Have Not Filed a 2003 Tax Return

RS Has $2.2 Billion for People Who Have Not Filed a 2003 Tax Return


IR-2007-51, March 6, 2007

WASHINGTON — Unclaimed refunds totaling approximately $2.2 billion are awaiting about 1.8 million people who failed to file a federal income tax return for 2003, the Internal Revenue Service announced today. However, in order to collect the money, a return for 2003 must be filed with an IRS office no later than Tuesday, April 17, 2007.

The IRS estimates that half of those who could claim refunds would receive more than $611. In some cases, individuals had taxes withheld from their wages, or made payments against their taxes out of self-employed earnings, but had too little income to require filing a tax return. Some taxpayers may also be eligible for the refundable Earned Income Tax Credit.

“Everybody who needs to should file their tax return. But you simply can’t get the money we owe you unless you file a return,” said IRS Commissioner Mark W. Everson.

In cases where a return was not filed, the law provides most taxpayers with a three-year window of opportunity for claiming a refund. If no return is filed to claim the refund within three years, the money becomes property of the U.S. Treasury. For 2003 returns, the window closes on April 17, 2007.

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Pension Plan Distributions...Not Paying yourself first has its consequences.

Publication 575 (2006), Pension and Annuity Income

Payment to you option. If an eligible rollover distribution is paid to you, 20% generally will be withheld for income tax. However, the full amount is treated as distributed to you even though you actually receive only 80%. You generally must include in income any part (including the part withheld) that you do not roll over within 60 days to another qualified retirement plan or to a traditional IRA.

If you are under age 59½ when a distribution is paid to you, you may have to pay a 10% tax (in addition to the regular income tax) on the taxable part (including any tax withheld) that you do not roll over. See Tax on Early Distributions, later.

Choosing the right option. Table 1 may help you decide which distribution option to choose. Carefully compare the effects of each option.


Tax on Early Distributions

Most distributions (both periodic and nonperiodic) from qualified retirement plans and nonqualified annuity contracts made to you before you reach age 59½ are subject to an additional tax of 10%. This tax applies to the part of the distribution that you must include in gross income. It does not apply to any part of a distribution that is tax free, such as amounts that represent a return of your cost or that were rolled over to another retirement plan. It also does not apply to corrective distributions of excess deferrals, excess contributions, or excess aggregate contributions (discussed earlier under Taxation of Nonperiodic Payments).

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Doin' your own thing? Get it right!

Sole Proprietorships - Business Taxes - About.com

Estimated Taxes: How to Pay Your Estimated Taxes Quarterly

Learn how to calculate your estimated tax payments. Estimated payments are due at least every quarter. Tips for calculating the right amount of tax, plus ideas on budgeting for your tax payments.

Tax Tips for Freelancers

Tax tips and strategies for freelance professionals and self-employed people. There are special circumstances that apply to freelance writers and other creative professions, so I will highlight what you need to know to prepare your taxes and to avoid IRS investigations.

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Frequently Asked Questions - Keyword: 1099-MISC

Frequently Asked Tax Questions And Answers
Keyword: 1099-MISC

4.3 Interest/Dividends/Other Types of Income: 1099–MISC, Independent Contractors, and Self-employed

I received a Form 1099-MISC instead of a Form W-2. I'm not self-employed, I do not have a business. How do I report this income?

If payment for services you provided is listed in box 7 of Form 1099-MISC (PDF), you are being treated as a self-employed worker, also referred to as an independent contractor. You do not necessarily have to "have a business," but simply perform services as a nonemployee to have your compensation treated this way. The payer has determined that an employer-employee relationship does not exist in your case. That determination is complex, but is essentially made by examining the right to control how, when, and where you perform those services. It is not based on how you are paid, how often you are paid, nor whether you work part-time or full-time. There are three basic areas that are relevant to determine employment status:

* behavioral control,
* financial control, and
* relationship of the parties



DEDUCTIONS HAVE JUST TAKEN ON A WHOLE NEW MEANING.

WE WILL HELP YOU TO TAKE EVERY EXPENSE AGAINST THIS INCOME ALLOWED TO REDUCE THE TAX CONSEQUENCES IT PRODUCES.

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Brother2Brother & Sister2Sister ~ b2bs2s.org

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The TaxMan @ B2BS2S.ORG

Untitled Document

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Web 2.0 ... The Machine is Us/ing Us

IRS Free File Alliance Participants Portal

Free File

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Important notes before you begin...

* If the amount is not specified, Free File services are limited to taxpayers with an Adjusted Gross Income of $52,000 or less; or otherwise as noted
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The Debt Trap

Wherver you live, whoever you are, and whatever you do for a living...Pay Yourself First.

Timing is everything. Patience is a virtue. Cliches were once profundities.

Tax Topics - Topic 152 Refunds – How Long They Should Take

Topic 152 - Refunds – How Long They Should Take

If you file a complete and accurate tax return and you are due a refund, your refund will be issued within six weeks from the date we receive your return. If you filed electronically, refund checks will be issued within three weeks after the acknowledgment date. Refunds from amended returns will be issued within 8–12 weeks. Injured spouse claims can take longer, depending on the circumstances. Refer to Topic 203 for more information concerning Injured Spouse Claims.

To check the progress of your current year refund, go to www.irs.gov "Where's My Refund" or call the Refund Hotline at (800) 829–1954. Please allow 4 weeks after you mail your return before calling this automated system. When you call, you will need to provide your Social Security number, your filing status, and the exact whole dollar amount of the refund shown on your return.

There are several reasons for delayed refunds. An address change after filing the return, a name listed on the tax return that does not match with the name on the Social Security Records, failure to either sign the return or include necessary attachments such as Form W-2 (PDF) or schedules, and detected math errors, are some of the situations that may result in an additional 8–week delay in receiving your refund. Refer to Topic 157 for information concerning how to notify the IRS of an address change. Refer to Topic 303 for a checklist of common errors when preparing your tax return, and for additional items that may delay the processing of your return.

If you receive a refund to which you are not entitled, or one for an amount that is more than you expected, do not cash the check until you receive a notice explaining the difference. Follow the instructions on the notice.

On the other hand, if you receive a refund for a smaller amount than you expected, you may cash the check, and, if it is determined that you should have received more, you will later receive a check for the difference.

If you did not receive a notice and you have questions about the amount of your refund, wait two weeks after receiving the refund, then call 1–800–829–1040.

The IRS assists taxpayers in obtaining replacement checks for refunds that are verified as lost or stolen.

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The TaxMan's Most Frequently Asked Question about the "Long Distance Tax Refund"

Telephone Tax Refund Questions and Answers

How did the government come up with the standard amounts?

The standard amount is based on actual telephone usage data, and the amount applicable to a family or other household reflects taxes paid on long-distance or bundled service by similarly sized families or households. Using this amount may be the easiest way for taxpayers to request their refund and avoid gathering months of old phone records.

Telephone industry and IRS data were used to determine the refundable standard amounts. The data showed that spending on long distance correlated directly with the number of persons in a household; therefore, a scaled refund structure was selected based on the number of exemptions a taxpayer is eligible to claim on their 2006 tax return.

What forms do I file to request the refund?

For many individual taxpayers who want to take the standard amount, there are no additional forms to file, and you only need to fill out one additional line on your regular income-tax return.

Individuals choosing the standard amount can simply fill in the amount on their regular income-tax return:

* Form 1040, Line 71;
* Form 1040A, Line 42;
* Form 1040EZ, Line 9;
* Form 1040NR, Line 69; or
* Form 1040NR-EZ, Line 21.

People who don’t need to file a return can use a new, simple form ( Form 1040EZ-T) to choose the standard amount.

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Where in Sam Hell is My Refund is more like it around Oakland... Be prepared when you check in with the IRS.

Get Refund Status

Refund Status
Get Refund Status
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Please enter Social Security Number here. - - Please enter the first three digits of your Social Security Number. Please enter the second two digits of your Social Security Number. Please enter the last four digits of your Social Security Number.

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Please select the Filing Status
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Please select a Filing Status here. Single
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Note: For security reasons, we recommend that you close your browser after you have finished accessing your refund status.

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For the Home-owner who is in doubt. Be sure yours is a qualified home first.

Publication 936 (2006), Home Mortgage Interest Deduction

Qualified Home

For you to take a home mortgage interest deduction, your debt must be secured by a qualified home. This means your main home or your second home. A home includes a house, condominium, cooperative, mobile home, house trailer, boat, or similar property that has sleeping, cooking, and toilet facilities.

The interest you pay on a mortgage on a home other than your main or second home may be deductible if the proceeds of the loan were used for business, investment, or other deductible purposes. Otherwise, it is considered personal interest and is not deductible.
Main home. You can have only one main home at any one time. This is the home where you ordinarily live most of the time.

Second home. A second home is a home that you choose to treat as your second home.

Second home not rented out. If you have a second home that you do not hold out for rent or resale to others at any time during the year, you can treat it as a qualified home. You do not have to use the home during the year.

Second home rented out. If you have a second home and rent it out part of the year, you also must use it as a home during the year for it to be a qualified home. You must use this home more than 14 days or more than 10% of the number of days during the year that the home is rented at a fair rental, whichever is longer. If you do not use the home long enough, it is considered rental property and not a second home. For information on residential rental property, see Publication 527.

More than one second home. If you have more than one second home, you can treat only one as the qualified second home during any year. However, you can change the home you treat as a second home during the year in the following situations.

*

If you get a new home during the year, you can choose to treat the new home as your second home as of the day you buy it.
*

If your main home no longer qualifies as your main home, you can choose to treat it as your second home as of the day you stop using it as your main home.
*

If your second home is sold during the year or becomes your main home, you can choose a new second home as of the day you sell the old one or begin using it as your main home.

Divided use of your home. The only part of your home that is considered a qualified home is the part you use for residential living. If you use part of your home for other than residential living, such as a home office, you must allocate the use of your home. You must then divide both the cost and fair market value of your home between the part that is a qualified home and the part that is not. Dividing the cost may affect the amount of your home acquisition debt, which is limited to the cost of your home plus the cost of any improvements. (See Home Acquisition Debt in Part II.) Dividing the fair market value may affect your home equity debt limit, also explained in Part II.

Renting out part of home. If you rent out part of a qualified home to another person (tenant), you can treat the rented part as being used by you for residential living only if all of the following conditions apply.

*

The rented part of your home is used by the tenant primarily for residential living.
*

The rented part of your home is not a self-contained residential unit having separate sleeping, cooking, and toilet facilities.
*

You do not rent (directly or by sublease) the same or different parts of your home to more than two tenants at any time during the tax year. If two persons (and dependents of either) share the same sleeping quarters, they are treated as one tenant.

Office in home. If you have an office in your home that you use in your business, see Publication 587, Business Use of Your Home. It explains how to figure your deduction for the business use of your home, which includes the business part of your home mortgage interest.

Home under construction. You can treat a home under construction as a qualified home for a period of up to 24 months, but only if it becomes your qualified home at the time it is ready for occupancy.

The 24-month period can start any time on or after the day construction begins.

Home destroyed. You may be able to continue treating your home as a qualified home even after it is destroyed in a fire, storm, tornado, earthquake, or other casualty. This means you can continue to deduct the interest you pay on your home mortgage, subject to the limits described in this publication.

You can continue treating a destroyed home as a qualified home if, within a reasonable period of time after the home is destroyed, you:

*

Rebuild the destroyed home and move into it, or
*

Sell the land on which the home was located.

This rule applies to your main home and to a second home that you treat as a qualified home.

Time-sharing arrangements. You can treat a home you own under a time-sharing plan as a qualified home if it meets all the requirements. A time-sharing plan is an arrangement between two or more people that limits each person's interest in the home or right to use it to a certain part of the year.

Rental of time-share. If you rent out your time-share, it qualifies as a second home only if you also use it as a home during the year. See Second home rented out, earlier, for the use requirement. To know whether you meet that requirement, count your days of use and rental of the home only during the time you have a right to use it or to receive any benefits from the rental of it.

Married taxpayers. If you are married and file a joint return, your qualified home(s) can be owned either jointly or by only one spouse.

Separate returns. If you are married filing separately and you and your spouse own more than one home, you can each take into account only one home as a qualified home. However, if you both consent in writing, then one spouse can take both the main home and a second home into account.

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Married Taxpayers with Children be aware...

Qualifying Child of More Than One Taxpayer

Internal Revenue Service United States Department of the Treasury

Qualifying Child of More Than One Taxpayer

Sometimes a child meets the rules to be a qualifying child of more than one taxpayer. However, only one taxpayer can treat that child as a qualifying child for:

* The EITC,
* The dependency exemption,
* The child tax credit,
* Head of household filing status,
* The exclusion from income for dependent care benefits, and
* The credit for the child and dependent care expenses.

You can choose which person will claim the benefits including the EITC. If you and someone else have the same qualifying child, you and the other person(s) can decide which of you, if otherwise eligible, will claim the benefits including the EITC, using that qualifying child. If more than one person claims the EITC and any of the other tax benefits listed above using the same child, the tie-breaker rules below apply. If the other person is your spouse and you file a joint return, these rules do not apply. These rules also do not apply if the other person is your child's other parent from whom you are divorced or separated and to whom you gave (or intend to give) the right to claim the child as a dependent by signing a written declaration that you will not claim the child as a dependent for 2006. For information for divorced and separated parents, see Publication 501.

Tie-Breaker Rule: When More Than One Person Uses the Same Child

Caution: This tie-breaker rule does not apply if the rules for divorced or separated parents applies or if the other person is your spouse and you and your spouse file a joint return.
IF more than one person claims any of the benefits above, using the same child and... THEN
Only one of the persons is the child's parent Only the parent can treat the child as a qualifying child.
Two of the persons are the child's parent, and they do not file a joint return together. Only the parent with whom the child lived the longest during the year can treat the child as a qualifying child.
Two of the persons are the child's parent, the child lived with each parent the same amount of time during the year, and the parents do not file a joint return together. Only the parent with the highest adjusted gross income (AGI) can treat the child as a qualifying child.
None of the persons are the child's parent. Only the person with the highest AGI can treat the child as a qualifying child.

If another person claims the benefits including the EITC using this child. If your qualifying child is treated under these rules as the qualifying child of another person for 2006, you cannot take the EITC using this qualifying child. You may be able to take the EITC using a different qualifying child, but you cannot take the EITC for people who do not have a qualifying child. If you do not have another qualifying child, you cannot take the EITC.

Rules for Divorced or Separated Parents

Please refer to Publication 501 for further information or definition.


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