 Anyone else think we Brits are Taxed to high heaven.? |
| PAYE, VAT, COUNCIL TAX, the budget!! where does it all end...We Brits are getting Taxed out of existence and these so called MP`s of ours have a cheek to claim thousands of pounds of tax payers ... |
|
 Do I have to declare the following on my tax return? |
| I have a second mortgage on my house that I currently owe about $50,000 on. My mom has recently offered to help me out and pay it for me. In other words, she would write the check out to the ... |
|
 My employer hasn't taken out any state and federal taxes, what do I do? |
By the time the year ends, my income will be about $10,000. Does anyone know what form(s) I need to file and what how do I find out the percentage that I need to pay?
Additional Details
... |
|
 If I am married what is the best way to file my taxes? |
| Well I got married in may 2005. Can I still file single and head of household or do I HAVE to file married. I want to know the best way to get the most money back.... |
|
 What does no cash refunds mean on a receipt? |
i bought a game from a store but now i dont want it. i didnt take the plastic off or anything nd the receipt says returns up to 30 days with a receipt...no cash refunds...etc.
does that mean ... |
|
 My acknowledgement no is 039305757 please let me know me my application status and if possible my pan NO:-? |
| My First name in the application is Rekha and last name is Sundervel My DOB IS 18/09/87. My coupon number is 027252780... |
|
 Council tax direct debit? |
hi
im trying to repay my council tax arrears i have a direct debit mandate from them that they sent a while ago, should i send it?
im hoping they will accept it, do you think they ... |
|
 Will I get a refund??? |
| I was sent a letter from the IRS about 6 months back saying I still owe 200$ for unclaimed income for my 2004 taxes. I have filed for my 2006 taxes already, and am looking at a nice refund. Will the I... |
|
 What monthly salary? |
How much would I come out with per month after tax, NI and pension at 11% if I was paid 21000pa
Additional Details
pa is per ... |
|
 If I worked as an independent contractor last year...? |
| and only made around 3,000 dollars, but didn't file, is the IRS going to come for me? I was a restaurant delivery driver and didn't want to go through the hassle of adding up all the miles ... |
|
 We have small business, how can we reduce our tax? |
| We have very little expenses, use our personal for the business. We like to buy a business car, any pros & cons? Also we pay tax approx £11k each year. We are wondering if can save this money in ... |
|
 Home inheritance? |
| how do you protect the inheritance of your home to your children if when you get older and may need to go in to a care ... |
|
 What is my filing status? |
| I was married in Sept and filed for divorce in Nov. I left his house in Oct, we lived together since Feb. I have custody of our daughter. I wanted to know if I could file Head of Household. I do ... |
|
 Can I claim my child on income taxes even though I do not have custody of her? |
| My child was born on August 18th, 2006. On October 17th, 2006 Child services placed her in protective custody of a family member. I have been ordered to pay child support, begining the first of ... |
|
|  |
melissa13182 | What does this mean regarding my taxes? |
H&R Block told me this. I'm a student and I'm not familiar with doing taxes.
Because your tax liability is less than the amount of your Education Credit, the amount of your credit is limited from $1354 to $841.
p.s. I filed an extension already for personal reasons.
Additional Details
I think what I don't understand is the term "credit" is this a good thing? Please someone explain it to me. Thank you! |
 |
 
TaxMan
 |
Let's go word for word.
Because your tax liability... (tax liability is the tax you owe the IRS for all the income you made during the year)
is less than the amount of your Education Credit... (credit here is something that lowers your tax liability. a credit is a good thing. it means you owe less tax)
the amount of your credit is limited from $1354 to $841 (your credit should have knocked down your tax by $1,354. However, your tax was only $841. Since you can't have a negative tax liability, it goes all the way down to zero and the rest of the credit is wasted. $841 - $1,354 = $0 in the eyes of the IRS)
Translation, your tax liability is as low as it can get...$0.
All the money you paid to the IRS (withheld, if you will) via your employer which is shown in box 2 of your W-2s will come back to you when you file your tax return.
FYI: if you are getting money back from the IRS, you do not have to file an extension |
|
bostonianinmo
|
The education credit is not refundable. Although your credit calculated out to $1,354, your total tax liability is only $841 so that is the maximum amount of your credit. Basically it wiped out your tax liability completely. |
|
Okiedokie97
|
There are two types of credits. Refundable credits and non-refundable credits. Non-refundable credit cannot provide a refund, but are only used to eliminate tax liability to the maximum of zero tax liability. Refundable credits can create a refund (thus the name).
Non-refundable credits are directly underneath the total tax line at the top of page 2 of Form 1040, and this is where the education credits are placed, thus the education credits (Hope or Lifetime) are categorized as non-refundable credits. Refundable credits are down at the bottom of page 2 of Form 1040, next to the withholding and estimate payment fields.
Your education credit would have been able to eliminate up to $1,354 of tax liability, but since your tax liability was only $841, the non-refundable credit was limited to the amount of the tax liability. |
|
Mathew
|
Go to the link below and you will find a copy of IRS form 1040. Line 46 on the second page is the total tax liability which in your example must have been $841. Lines 47 thru 55 are non-refundable credits that reduce your tax. Line 50 is for Education Credits. If your ED credit could have been $1354 you would only be able to use $841 because that is the amount that reduces your tax liability to zero. Since all of the credits on Lines 47 to 55 are non-refundable, any amount that you don't use are lost (with one possible exception for child tax credit).
http://www.irs.gov/pub/irs-pdf/f1040.pdf?portlet=3 |
|
acmeraven
 |
A credit reduces your income tax due. An example---your federal income tax figures out to $ 1,333.00. You have an education credit of $ 800.00; that will reduce your tax due to $ 533.00. Next postulate this; if your tax due is only $ 800.00 and you have a credit of more than that amount; say $ 1000.00; then $ 200.00 of the credit just evaporates and cannot be used as there is nothing to use it against. The education credit is non refundable and can only be used to reduce your tax due. Any excess credit goes "poof" and vanishes into the void. The "Child Tax Credit" is different in that in some cases it reduces tax due and the excess is carried down to the withholding section and can be refunded; but don't go there yet. Taxes are the reason why so many tax preparers become heavy drinkers!!! |
|
Judy1
|
A credit is an amount that subtracts dollar for dollar from your taxes - so it's definitly a good thing.
A non-refundable credit (most of them are this type, including education credits) means that the credit can reduce your taxes to zero, but if there's some left over, you don't get it back.
So yes, the education credit reduces your taxes to zero, but you don't get the difference in cash. With your taxes reduced to zero, though, if you had anything withheld for federal income tax, since you now don't owe anything, you'd get it all back. |
|
BMAC
|
A credit is a Dollar for Dollar reduction of your actual Tax Liability a Deduction just reduces your income to be taxed for example.
A deduction would effect you like this
Taxable income 10,0000 Tax @ 15% 1500
Add. Deduction 1,000 Tax reducection 150
So a 1000 dollar deduction would only reduce your taxes paid by 150 at the 15% rate and a 1000 Credit will actually reduce it by 1000 dollars.
The answer to your first question is that because your taxes owed were less than the amount of the credit the government will only let you pay NO taxes. |
|
| |
|
| | |
| Questions List |
Answers | Last Post
| | | |
8 | 34 minutes(s) ago
| | | |
8 | 35 minutes(s) ago
| | | |
8 | 2 hour(s) ago
| | | |
8 | 4 hour(s) ago
| | | |
8 | 9 hour(s) ago
| | | |
8 | 2 day(s) ago
| | | |
8 | 4 day(s) ago
| | | |
8 | 5 day(s) ago
| | | |
8 | 2 week(s) ago
| | | |
8 | 2 month(s) ago
| |
|
Homepage 
Financial
Forum 
Taxes 
No Spam
Adult 
Gambling
Unfinished
Deception
Plagiarism
Not English
