State Tax Refund Taxable Income
Question: what is the combined state and Fed tax rate for 2008 for married couple illinois?
If a married couple in illinois, filing as itemized for 2008, who owed the state approx 8 dollars, and got back from the fed approx 1400 dollars, and had an income gross at 45000, with an income adjusted gross the same amunt, with zero deductions, total Taxable Income of approx 34000, total tax of approx 900, total payments of approx 1010, and refunds of zero, what would their combined state and Federal tax rate be?
I am doing a mortgage calculator [how much i can afford] and I do not know what this amount is. I do have the 2008 return completed but cannot tell from it what the combined Fed and state rate is. Thanks.
Answer: Take the total tax lines from your state and federal returns. Add them together and divide by your gross income to get the combined net tax rate.
Mortgages are based upon your gross income so you don’t need your tax rate for figuring if you qualify for one.
BTW, if you are married Filing Jointly using the standard deduction with a gross income of $45k, your taxable income would be $27,100, not $34,000.
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Fitch Ratings assigns an ‘AAA’ rating to the following Union County Improvement Authority, New Jersey obligation:
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Tax Refund Taxable Income
Question: PA National Guard Pay for state income tax, taxable or non taxable?
My husband is in the PA NG and he has a full time job there (he is AGR). His W2 has PA state wages and PA state tax withheld, but turbo tax asked me if this is supposed to be taxable since he is in the military. No he was not deployed and did not serve in a combat zone at all in 2009. Is full time NG pay taxable for the state of PA? Or should I say exempt and get a refund of the tax he paid in?
Also his local tax box on his W2 is blank, so I am assuming that his pay is non taxable? It has been my professional knowledge that local taxability always follows state, expect for certain items such as church housing etc.
Thanks!
Answer: Hello,
I work for a tax preparation company and can tell you that sometimes military tax returns can be confusing. My husband is also in the PA National Guard but was deployed in 2009. Let me try to help you out. (By the way, this is my first “Yahoo answer.”)
It sounds like your husband’s wages will be fully taxable for federal and that you should enter all wages in box 1 as taxable. (If he were deployed in a combat zone those wages would not be taxable. The W-2 would not include them in box one; the nontaxable combat pay would appear elsewhere in the W-2.)
The same goes for Pennsylvania. All wages in box 16 will be fully taxable. The only difference is that if your husband worked outside of PA for any time in 2009, those wages would not be taxable to the state of PA. You’ll have to look at the numbers as reported on the W-2 to figure this out.
As for local taxes – he is responsible for paying them. DFAS does not withhold local tax. You can contact your local tax office for the forms. They can even help you figure out how to do them. The tax due to them would be a percentage of the local wages included in box 18. Many PA guardsmen owe local taxes due to DFAS not withholding. My husband always owes in for this.
www.militaryonesource.com offers free tax preparation software with H&R Block – which I highly recommend. You can also check out www.irs.gov or www.tax.state.pa.us for more information.
Hope this helps!
Know tax credits to save money
A tax credit reduces the amount of income tax you may have to pay. Unlike a deduction, which reduces the amount of income subject to tax, a credit directly reduces the tax itself.
Tax Law Changes Affecting 2008 Tax Returns