Taxable Income Standard Deduction
Question: There is no any Standard Deduction of 1,10,000 from Income (from Profession) Tax ? can I not get this ?…?
First I do again more clear things : I am as a consultant… i have apointment leter but no any written contract from my company, I don’t get any pay slips, I get amount in bank a/c.
There is no any Standard Deduction of 1,10,000 from Income (from Profession) Tax ? can I not get this ?
… if any person earns only 20,000 in a whole year… then he comes under ‘Below Poverty Line’ … It means the government will take Taxe from this poor person also ? !!!!!!!
And if it is not taxable then why one should deduct TDS on this amount (as my salary is 10,000 pm). ? He can deduct TDS only on 10,000 (@10.3%) isn’t it ?
Is it Rule by Govrment to deduct TDS if income (from profession or any source) is not exeeds limit?
I am very confused on this matter Please explain this.
Answer: First and foremost, In Income tax terms, you are not an employee of the company u r working for but a “FREELANCER” and in all such cases rules stipulates that TDS has to be deducted @ 10.30% u/s 194J of the IT Act 1961.
But that does not mean that even if ur Taxable Income is less than 1,10,000 u have to pay any tax !!
Just consider this “Deduction” as “advance to government” and at the end of year you can claim back/get refund of this “DEDUCTION” by filing the return. You will also get interest on the refund.
I hope this will clear all your doubts.
Further, there is no more the concept standard deduction now. And in your case (being a freelancer in income tax paralance) has many other advantages which a “SALARIED” person may not have.
CA. Deepak Bholusaria
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Filing Status Exemptions
Question: What is the correct filing status for a married couple with one child and one on the way?
Hi! I live in Louisiana, and we are so confused! We are trying to figure out the best way to file our exemption. Right now we have it as Married and 2. Is this right? My husband is the only one who works. I stay home with our son and am pregnant, baby not due til 08. What I”m looking for is, to get more money in our weekly take home pay but to still not have to pay in April. In the past he’d been Single and 1. So we got a huge refund. I’d rather just have that money each week. So is Married and 2 the right way to do this? Thank you so much for any help!!
Ok the reason I also ask is my friend said claiming married means two, in other words married and 2 means, married=my hubby and me, then 2 means my son and ____? Is that right? That sounded wrong to me. Thanks!Answer: You file your tax return either as Married Filing Jointly or Married Filing Separately. You’ll normally pay less tax filing jointly. You get one exemption for each of you for a total of 3. The bun in the oven means nothing until he or she pops out. If it’s before 12/31, you get another exemption for the year.
As to what to claim on his Form W-4, since he is the only earner, he should file that as Married and 3 at the very least. With only one child, he could claim 4 withholding allowances and you would just about break even with only one child. Once the new one arrives, he can bump that up by 1 and claim either 4 or 5 withholding allowances.
This will significantly increase his paychecks and reduce the size of the refund that you get, which is probably what you really need to do.
If you read the instructions for Form W-4, you get one allowance for yourself, one for your spouse, one for each child or other dependent, as well a one “bonus” allowance if you hold only one job or are married and your spouse doesn’t work. Therefore, claiming Married and 4 right now or Married and 5 once the baby is born is quite legal and will just about zero you out at tax time.
Filing Status, Exemption Info from The “Tax Lady Sings”
Filing Status W4
Question: If I’m married can I still choose to file as SINGLE status on my W4?
The reason I’m asking is because I’m making about $30K more this year than last and I don’t have any big ticket tax deductions like a house or children. I think when you file as single more taxes are taken out, but I’m not sure if I can legally do that because I’m actually married, or does it matter?
Answer: For your W4, yes you can mark the Yes, I am married, but withhold at the higher single rate option. Then your employer will withhold more taxes, so you stand less of a chance of owing the government when you file your federal. Perfectly legal, it is not fraud!
Basic Explanation of W-4 tax Form : What is the Purpose of a W-4 Tax Form?
Ny State Tax Refund Phone Number
Question: I’m supposed to get money back from the state for my NY State income tax, however they reviewed the form and?
said I owed them. They sent me their calculations. They are wrong. I didn’t make the amount of money for last year like they say. I made less and I sent them the exact place where it shows how I arrived at my calculations. How long is this going to take before I receive my state tax return refund. It was their mistake and it should have been mailed to me weeks and weeks ago. Is there such a thing as a tax attorney that I can go to? They are dragging this out as long as they can. I’m all ready to take this to an attorney. Anyone have a phone number I can call for help in this?
Answer: To be honest, there is not much you can do. The IRS can investigate this for some time. You would just be wasting your time and money trying to hire a lawyer about this problem. Continue to contact the IRS and question them about your return.
Economic Supports for Struggling New Yorkers
Taxable Income Children
Question: can child support be used as Taxable Income?
i have no other income, can i file taxes on that money if i want to?
Answer: Child support is non taxable income and for purposes of calculating the earned income credit, child support is not considered earned income.
Now alimony would be a different story.
Raleigh Family Law Attorney | Child Support in North Carolina | 866.362.7586