Welcome to yet another tax season.
With a matter of days remaining until the April 15 IRS income tax deadline, the stress level of Americans is on the rise. Prepare yourself for more angry drivers on the freeways, impatient customers in the lines of local coffee shops and grocery stores, and friends who don’t quite treat you like the friends they were only weeks ago.
Looking for a way to cut down on the April tax time blues? There’s a little known secret called an IRS tax extension (the technical term is an IRS Form 4868 – Application for Automatic Extension of Time To File U.S. Individual Income Tax Return), and a company called FileLater who can help. Of 130M United States federal income tax filers, about 10M filed for automated extensions last year, so you won’t be alone. And the IRS doesn’t ask (or care) why you file for an extension.
Almost every tax-paying American is automatically eligible to file an IRS tax extension, and it can be easy to do. In about 5 minutes, you can go to File Later’s website, answer a handful of relatively simple questions, and have your tax extension e-filed to the IRS for you. In a couple of days, you’ll get an email with IRS confirmation that your new tax deadline is October 15.
To file a tax extension online you’ll need to provide some basic personal information, and an estimate of your tax liability. Don’t have a clue if you owe or if you’ll be getting a refund? Don’t worry, the better tax extension filing services like FileLater will provide you with a simple calculator to make determining your tax liability easy.
If you’re in the minority of tax filers who will owe money to the IRS (rather than getting a refund) the IRS will still want their money by April 15 or you could be hit with a late payment penalty. Filing a tax extension will give you the extra 6 months to file your tax return, but it doesn’t give you extra time to pay the IRS. That means you either have to mail a check postmarked by April 15 to the IRS or provide bank information online for an automatic withdrawal. If you expect to get a refund, then there’s nothing to consider.
The deadline for filing your income tax extension is April 15. A simple 5 minutes with File Later can give you an additional 6 months to file your taxes, and your stressed out CPA or tax professional will love you for it.
Watch the video related to tax
The US tax code gets more complex every year. It violates civil liberties and, left unchanged, will leave the United States at a powerful competitive disadvantage in years to come. Chris Edwards, Director of Tax Policy Studies, Senior Fellow Daniel J. Mitchell and Director of Information Policy Studies Jim Harper dissect the troubling aspects of our tax system. This video was produced by Caleb Brown ( www.twitter.com ) and Austin Bragg ( www.twitter.com )….
Help answer the question about tax
What is the difference between an income tax and a payroll tax?
What is the difference between an income tax and a payroll tax?
A. Income taxes reduce the demand for harmful goods while payroll taxes don't affect this demand.
B. Income taxes are collected based on income while payroll taxes are collected based on wealth.
C. Income taxes are used for a wide variety of government activities while payroll taxes pay for specific programs.
D. Income taxes increase the purchasing power of the government while payroll taxes increase the purchasing power of workers.
About Author
File Later, provides a secure online solution for those individuals seeking to e-file an IRS tax extension (also known as IRS Form 4868). www.filelater.com
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A-False
B-False
C-True
D-False (though true in some sense)
"C" is right one.
Depends on what the tax rate is. Are you talking about sales tax or income tax. Multiply the tax rate by your total ($127.50) and that will be your tax.
I think what you probably meant is this: when you figure the amount of a gift, you DON'T include that tax you are going to pay on it, so there is no tax on the tax. On the other hand, when your figure the estate tax, to DO figure it on the entire net estate–you get no deduction for the amount of estate tax you will pay. So you do pay tax on the tax.
For example, if the tax rate were a flat 50%, and all your unified credit is consumed. If you gave a $2 million gift, you would pay $1 million tax. You are out of pocket $3 million. Taxes ate 1/3, and your beneficiary got 2/3. If, on the other hand, you died with $3 million, you'd pay 1.5 million in tax, and your heirs would only get the other 1.5 million. So, while the stated rate of tax is the same, you pay more with an estate tax than with a gift tax.
Good luck on your exam.
You estimate what you are going to make. Look at the 2007 tax rate schedule and find the tax amount that fits that salary and filing status. (Tax rates probably won't change that much this year, so using 2007 rates will be just fine.) Use this tax amount determine if you need to pay estimated tax for 2008.
When you file your tax return next Spring, you get credit for the estimated tax you paid in. If you paid too much, then you get it back in your 2008 refund.
Since the sales tax is paid to the registering authority not the dealer, you'd only pay MA sales tax if you registered it in MA. MA doesn't have a temp tag system so you'll need to get your tags in NH first before you take delivery. If you tag it in MA for the trip back to NH, you will have to pay the MA tax.
This question basically is looking to see if you should itemize your deductions or take the standard deduction.
When you itemize, one of the things itemized is how much in taxes you paid to the states last year. They can figure out how much you paid from your paystub.
They also want to know though, if you owed any money on your 2006 tax return that you paid then, because that counts towards "income taxes paid in 2007" for itemized deduction purposes.
So what this question is asking is:
- Did you owe any income tax on last years return that you paid.
- Did you pay any back income taxes on last years return.
- The key is that it's *state* income taxes. They don't care whether you owed / paid any federal income tax last year.
Nothing too sinister.
I am assuming that since your income is exempt, you ARE NOT an employee of the US Government, and are therefore entitled to the Foreign Earned Income Exemption (FEIE) of up to $82,400 (as of 2006). I am also assuming that you are not receiving any housing allowance and that you are not subject to SS and Medicare Tax. Finally, I am assuming that your income would equal your adjusted gross income (i.e., no adjustments to income and no tax credits).
Under this set of assumptions, if you are earning $82,400 of exempt income, an equivalent taxable income would be roughly $114,000. Note that this amount does not take into consideration state income taxes as you did not indicate in what state you would be residing. Also excluded is the impact of sales taxes since they are a function of your level of consumption.
The calculation is rather convoluted and I am not aware of any readily available salary conversion sites. This is probably due in part to the many variables that would come into play.
For your information, that $114,000 salary would roughly break down as follows:
$114,000
- 6,045 SS Tax at 6.2% of the first $97,500
- 1,653 Medicare Tax at 1.45%
– 23,857 Federal Tax (assuming 1 exemption and std. deduction)
$ 82,445
As a practical matter it wouldn't work. It would have to start at something absurd like $20 or more per gallon. That would force conservation measures — today's Toyota Prius would quickly become regarded as a gas guzzler — but the resulting reduction in consumption would force the tax rate to rapidly spiral out of control. If consumption was cut by 80%, the tax would have to increase five fold to maintain the same revenue stream. Imagine a $2,000 fill-up at the gas station.
Forget about the immediate social impact. The urban poor might actually fare pretty well initially with public transportation readily available, but the rural poor would literally be left out in the cold as they typically depend upon older inefficient cars and trucks for basic transportation needs. The price of an airline ticket would cripple the airline industry; air travel is by far the "dirtiest" from a carbon footprint stand point. Europeans would do OK with their rail system, a comparatively clean mode of long-haul transport, but Americans would be in serious trouble. The costs of virtually all goods and services would rise dramatically due to the massive increase in transportation costs. This would cripple the economy in general and lead to wide-spread civil unrest throughout the social strata.
i dont understand what you are asking here, but usually you are allowed due process even on tax issues. so if you do not believe the tax man is correct there has to be a way you can dispute this.