Bank Interest Income Tax Question

by Rakesh
(India)

Bank Interest Income Tax Question

Bank Interest Income Tax Question

In a case where an individual is usually Australian Resident but for the Indian previous year March 2012 ending he is also Indian resident.


The interest on Australian bank balance for the period July 2011- June 2012 is received and credited in Australian Bank a/c.

As per Australian tax laws no tax is withheld on bank interest but it’s to be included in the total taxable income in Australia in June 2012 ending.

Now the question is since there is DTA between two countries can an individual include the total interest only in the Australian Taxation return June 2012 ending and not include the bank interest received in Australia in Indian Tax return for the March 12 ending as also the bank interest income is offered for tax in the year ending June 2012??

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Childs Income and Schedule K

by Sue
(Dallas,TX, USA)

My child had income of less than $950.00. He had a final Schedule K for a gift trust. Long term gains less than $20.00 and final year distributions $10.00. How can I claim this on my return?

Hello Sue,

Thank you for your inquiry.

You may be able to claim your child's income on Form 8814, Parent's Election to Report Child's Interest and Dividends. The form and instructions can be found on the IRS website at www.IRS.gov under Forms and Publications.


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Commissions

by johnson
(minnesota)

Fred is an insurance agent who receives commission on each policy he sells. In 2006, he purchased a policy for his own life, naming his wife the beneficiary. He did not report the commission on the policy as gross income because he considered the commission a reduction in his cost (like a discount) for the life insurance. is he legally able to do this or not?

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Compensation

Is income from social security considered "compensation" when determining eligability to contribute to an IRA?

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Dividend Income

by Michael
(UK)

I have been asked to become a director in a small company and be paid in dividends.

Will I still need to complete an employment page or just the dividend box on the tax return?

Also, how do I pay tax on a company car that is provided?

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Didnt Recieve All My Federal Income

by Nick
(North Carolina)

My federal income tax was supposed to be 3174 and they only deposited 1762 where is my money?

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Does This Count As Income?

by Sammy
(Ottawa, Ontario, Canada)

I put all our house hold bills on my credit card. At the end of the month my dad writes me a cheque for the total amount. I deposit the cheque and pay the credit card bill. Does this count as income for me?

Hello Sammy,

Thank you for your question.

Typically this would not be considered as income for you. It may possibly be considered as gift income which is not taxable if under $11,000.

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Employer Did Not Take Out Federal Income Tax

by Steve
(Rockford, IL, USA)

I just received my W-2 from my employer, only to find out they did not take out Federal Income Tax. They did, however, take out State Income Tax. I filled out my w-4 and it is clearly stated on my paystubs that I claimed 1 for my Federal Tax purposes.

What do I do now? Is my employer liable for anything? Or, am I just screwed? I thought the purpose of filling out a W-4 was to know my claim and take out the taxes accordingly. Isn't that my assurance that they are taking them out?

I don't know much about taxes, so when I looked at my stub, I assumed FICA was the Federal taxes, since there's no other line that could have been Federal. Now I come to find out that they took out FICA, State, and Medical but didn't take out Federal.

How can that be and is that legal????

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Family or Individual Income

by Sheretta
(Chicago, Illinois)

I'm a single parent and me and my 8 year old have been living together for the past 4 years. Can I claim as a family or individual? some places will prepare my taxes free if my income is under 20,000 individual or under 45,000 for family.

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Federal Income Tax On An Insurance Policy To Be Cashed In

by Kay
(Lake City, Pa.,USA)

My husband has had a $5000 life ins policy since 1968 and it is paid up many years ago. It has earned dividends since and is now worth over $9,000 cash if he surrenders it. How do we find out how much income tax or capital gain we must pay on that money when we cash it in this year 2011? We have no idea what the total amount of monthly payments we made till it was paid up. We got a letter from the Company and they were very vague and came up with This answer: The cost basis is approximately $649.99 A cash surrnder would result in a taxable gain of $3,400.01. Policy was issued prior to Aug. 13, 1982 and surrender value does not exceed $5,000 the IRS does not require this ins company to produce a Form 1099-R. However, this ruling does not neccessrily relieve a taxpaper to report gain .
How will we know whether to report it or not?

Kay Mehok

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FILING INCOME TAX RETURNS

by MEGHARAJA
(NAVI MUMBAI)

WHERE SHOULD I FILE MY I.T. RETURN FOR AY 2011-12 ? MY ONLY INCOME IS FROM SALARIES & MY EMPLOYERS' ADDRESS IS NERUL,NAVI MUMBAI WHEREAS I HAD GIVEN MY PERMANENT ADDRESS AS MANGALORE.I AM STAYING IN RENTED HOUSE IN BELAPUR AT PRESENT.PL ADVICE.
MEGHARAJA

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Income

by Dennis Arnold
(Washington State)

How much money does a couple have to earn before they need to pay taxes?

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Income

My daughter receives a check from her fathers social security disability. when we file our taxes do we have to report that on our taxes since she is a defendant of ours?

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Income

Im self employed made less than 10,000, and my husband made 6,000. How much in taxes will I get back with 3 kids?

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Income

If income is shown in the next year can it be escaped in the current year???

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Income and Inturn Tax?

by Mak
(Delhi)

There was liquidity issue with money I was receiving from couple of PPF policies. I lend some money to purchase land. Borrowed money is returned back from the money I got from policies. All these transactions happened from my salary account. Will all these transactions become part of my income/tax?

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Income and Social Security

by John
(Washington State)

I retired early from the Boeing Company. After retirement I started my own business which is an LLC with a separate tax ID number. I am currently contracting for the Boeing Company and all the earnings are paid to my LLC name and tax ID number.

I then pay myself a salary from the business. I pay my business taxes monthly.
Now for my question: I will be 62 years old this year and I want to start my early social security benefits at 62. I understand I can only make up to and not more than $14000 a year while I am on the early SS pay. Is this correct?

I am wondering, can I legally continue to operate my LLC and leave my earnings from the LLC in my LLC bank account and the pay myself a sum each month as long as I don’t pay myself more than the $14000 in any calendar year prior to age 65? Is it legal to leave the earnings I make from the LLC, but are not paid to me personally, in the business accounts?

Would I be penalized if I let that earnings just sit in the business account and then draw them out at a later time as long as I keep the payments to myself under $14000 a year while on early SS?

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INCOME IN 2 STATES

by KRISTEN
(GOLD CANYON , AZ)

iF MY INCOME WAS LESS THAN 11K IN ONE STATE DO i STILL HAVE TO FILE IN THAT STATE. i HAD 6 MONTS IN CALIF -INCOME18K AND ARIZONA FROM 7/2010 - INCOME 11K?

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Income From An Estate

If a family member dies and the estate liquidates and sends you cash, does this have to be reported?

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Income From Consultancy

by Abinesh
(Delhi)

Hi ,

I have income from software cconsultancy less that 2LPA, where should I show this income?

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Income from India

by Phil
(Illinois)

Dear Madame/Sir:
Can you suggest a good accountant for doing my taxes. I have the following questions I need answered first if you may.

I have dividend and interest income from India which is considered tax free in India. Do I have to pay taxes on that in the US?

Thanks,
Phil

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Income From Selling a Used Car

In Florida, if I sell my used car to an individual, do I need to declare the purchase price as income?

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Income on 28k

by Chris
(new york ciity)

Hello, I want to know how much I have to pay uncle Sam on income I received 28k this week as a consulting fee. I have a regular job 59k per year. Also I want to use this money to build my website for my startup company.

Will I be taxed again ?

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Income on Life Insurance Cash Out

by Lisa
(Oregon)

I cashed out my life insurance policy and there was a small gain. I had the insurance company withhold 10%. I did not receive a 1099 so I am wondering if I need to report the income and the withholding on my tax return and if so, where?

Thank you

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INCOME LIMIT

by MATHEW
(KERALA)

THE INCOME LIMIT FOR FILING TAX RETURN FOR 2010-11

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Income Tax Blank on W-2

by Justin
(Texas)

My wife earned 1700 dollars the entire year working up at the church. They took out medicare and social security but left the income tax blank. Obviously she did not make enough one her checks to have it deducted so what do I need to do? Do I need to include it in our return or can I just leave it off? Thanks for the help.

Hi Justin,

Thank you for your inquiry.

Yes, you will still need to include the $1,700 in W-2 income on your tax return even though they did not withhold any income tax.

Regards!

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Income Tax Liability

A company taxable income is 365000 interest is 50000, dividend received is 15000 and dividends paid is 25000, what is income tax liability and after tax income? What is marginal and average tax rates on income?

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Income Tax Officer

by Samkit Jain
(Bhopal)

I have pased my 12 exam with 82 percent from maths stream and I want to become an income tax officer. Can u please tell me the procedure?

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Income vs Compensation

by Bob Teer
(Sarasota Fl)

Qustion on income.... if a company sends me an item... ei a coffee maker for free, In return I must use it and then write a full review on my blog, outlining all details, good and bad about the product... must I claim the value of the coffee maker as income... As I see it the coffee maker was compensation for my work in writing the formal review...

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Individual Income Tax Return (Canada)

If you get revenue from a relative from an oil well and that relatives sends you say, 20,000 and then the T5 slip reads 25,000 and the relative says the discrepency is from gross income, how much do you have to pay income tax on - the 20,000 or the 25,000?

The T5 slip does read the higher amount but the relative is saying that because we just got the lesser amount thats all we pay on?

Thanks very much.

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Is my Dad's monthly check considered income to me?

I quit my job and brought my elderly dad into my home so I could take care of him. He gets a check for $3000 every month from his investment account, which he signs over to me so I can be home (not working) to take care of him. Do I report this money as income? If so, do I then claim my Dad as a dependent? This money is the only income I have.

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ITEMIZED DEDUCTIONS EXCEED INCOME

by Larry
(Orlando, FL)

I am anticipating that my itemized deductions will exceed my standard deduction and my income... (medical and charitable giving)... Can I still take them, and will they carry forward to future tax years?

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Low Income

Can I takes the standard decuction of 5700 if my AGI is less than 5700?

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Non Disclosure of Previous Employer Income

Dear Sir/Madam, 2 years back I had changed my Job mid of the year. I also had home loan that I had declared to my previous employer who computed my Tax laibility after giving me home loan rebate.

Late on to my new employer I forgot to share the Income and tax deducted detail of my previous employer and as a result my new employer also computed my tax laibility after considering my home loan. While filing return I dodid not consider my previous employer's income as well as tax paid.

Now I got demand for arrear payment with huge amount, I wanted to know what does Law says in such a case, Since now I know I should have merger both income and tax paid then computed tax and paid the additioan tax, What are the penality and under which section I can be charged by tax authorities.

Please help

Regards

Ashok Rai

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Other Tutor Income

by Amber

Tutor Income

Tutor Income

If I was paid for tutoring a friend's son during 2011 and he paid using a personal check with his own (post-tax) money, do I have to report that on my tax return?

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Out-of-State Income

Can anyone offer advice for an individual that lives in the State of Illinois and works in the State of Missouri, as it relates to getting slammed on paying Illinois income tax? Background: Individual lives on Illinois side and works in St. Louis, MO. Gross income ranges between $20,000 - $40,000. Individual has to file both Illinois and Missouri income tax. The refund for the Missouri portion is negligible. The taxes owed Illinois are essentially the entire amount of State tax withholdings paid to MO.

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Out of Tax Home, Per Diem Not Paid,W2 Shows All Income Taxable

by Arlig Cares
(Orlando,FLl.usa)

Hello,
I live in Orlando and Orlando qualifies as my tax home. I work for the Orlando and the Atlanta offices of a production company as temporary event staff.
My work for them in Atlanta is out of my tax home and for a week at a time at the most.
I have not received any Per Diem, and my income was taxed from dollar one, everything I was paid is listed as taxable, and with holding has be taken out.
I am not listed as statutory employee even though that was what I was told I'd be, they now deny ever mentioning this statutory status.
I was a 1099 contractor until they company was bought. the new owners, in an effort to be tax compliant, made us employees promising that the only thing that would change was that they would pay the employers half of FICA and we would be subject to with holdings.
I was expecting to fill out a sched C, as i did as an independent contractor and would be entitled to as a statutory employee,
They not only have not paid me a per deim, they employ me in georgia and send my check to florida. they also have listed on my w2 that all of my income is subject to taxation.
I know that getting them to change my status to statutory employee won't happen I've asked, and further pursuit will jeopardize future work potential.
I don't think they will kindly cut me a tax free check for Per Diems owed, from '08 to now totaling some $3500+, can I make them correct my w2 to show only moneys paid in excess of per diem allowances for meal& lodging, or do I fill out a 2106 for un reimburse expenses
Please help, thank you for your consideration

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Passive or Active Income?

by Jennifer D.
(Watertown, SD)

My husband is a chiropractor; our business is an S-corp. That is his full-time job, and the only location he works out of. We own the building he works in. The business pays us rent. Is that rent considered active or passive income? We don't own any other rental properties.

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Profit Is Low

Although profit is low but due to the intention and frequency of transactions , this situation will tax ??

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Proof of Income Earned Overseas

Am a teacher working on one-year renewable contract in Saudi Arabia. Can I file a return which will show income earned outside the US (even though there no taxes due on the income)? I am trying to provide proof of income for immigration purposes.

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Reportable Income

by John
(Michigan)

My father is disabled and he pays me a mothly amount to assist him with his daily living needs like bathing, medication, driving him to medical appointments and so on. Is this reportable income??

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SSD income, also income providing child care, also have 3 dep. children

by Laura
(florida)

Hi I have a tax question. My primary income is SSD & SSI, however I also earned just over $1,000.00 last year providing child care in my home for a relative. I am married but my husband is disabled with no income. I also have 3 minor children who are not employed. What do i do about the income earned as a babysitter? is this considered self employment? Can I claim EIC or any other type of credit excetera for my dependent children? What forms would I need to file? I have always paid someone in the past to prepare our taxes. I just can't afford to do that this year. I am very confused. Thanks for your help.

Hello Laura,

Thank you for your question.

Your childcare money earned would be considered self-employed income. You can report this on form Sch C EZ and offset the income with any out of pocket expenses, like food, toys, etc.

You can file as Head of Household and claim your three children also, as long as you provided over 50% of the support for the year. Then you may also qualify for EIC and child tax credits too. You would report all of these on Federal for 1040, California form 540.

Just follow the directions and you should be fine!

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"Strange" Income.

by Ken
(Ohio USA)

Too good to be true? Maybe, maybe not. I was given the opportunity to acquire a life insurance policy on another individual for $20,000. All I had to pay was a $25 admin fee and, eventually, the $20k would be paid to me via a bank draft. My question is, is that $20,000 taxable income and, if so, under what IRS provision? Mind you, this would come from a source outside the US. I took the gamble that it would even happen and I will eventually see, one way or the other, but the question of taxability is in the back of my mind.


Thank you,
Ken

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What Income Do I Pay Tax On?

by Liz
(US)

I am not employed, but occasionally do some baking for pay. Do I have to pay taxes on this?

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