Taxable Income Standard Deduction
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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
Get an IRS Letter, Call us Tax Preparation Winston Salem-Free Tax Credits Winston Salem
Taxable Income In Canada
Question: Tax Bracket!! Income after tax?
If you make $15/hour and you work 40hrs/week and there are 52 weeks in a year, you will make $31 200 in one year. How much will you make after taxes?? In New Brunswick, Canada
A website in Canada says that the rate for New Brunswick is
9.65% on the first $35,707 of Taxable Income, +
14.5% on the next $35,708, +
16% on the next $44,690, +
17% on the amount over $116,105I just dont know how to do math very well.
Answer: The tax is 9.65% on the FIRST $35,707 of TAXABLE income (not “salary”). $31,200 is less than that, so you take 9.65% of $31.200 = $2,964.
Of course, that’s before exemptions and deductions, so it will probably be less.
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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”
Tax Refund Marriage
Question: marriage couple get tax benefits?
I know that those who are married get tax breaks or tax benefit but tax laws keep on changing each years. Now they say almost $8 billion- phone exercise tax refunds was not claimed. How many people knew about this? They turn and say many failed to claim deduction tied to local outlay. Were you aware of this too not to take advantage of of potential $3.6 billion deduction? What else would change in this years tax return?
Answer: Yes, I knew about the phone excise Tax Refund. It was 30.00.. You would think it would have been more but that was all. I have no idea what else will change on this years tax returns. Tax time is almost here and I dread it. . .
Married…With Children – Whose Room Is It Anyway?
Penalty For Filing Tax Return Late
Question: 2006 tax return did not get filed and i had no power of attorney and they say i owe late penalties for not fil?
2006 tax return did not get filed,because i was in prison and had no power of attorney.state was sending late penalties while was locked up until 2009.now tax return was filed this year.Will they take return and stop penalties or will they still try to get late fees?tax return said i was owed money for that year.
Answer: Your refund will be applied to what you owe. If you were charged a penalty for late filing you may have reasonable cause for the delinquency.
HMRC Late Payment Fines 2011