2008 due rebate, 2008 withholding?
the last 4 years i recieved a full-size refund. this year i changed my withholding so that i would be close to even .if i take the full rebate i am due, 1800 will i owe that back when i record my 2008 return?
Answers: Under the compromise bill passed by the Congress, you would be eligible to receive a rebate of up to $600 if you paid that much contained by Federal Income Tax. If you only salaried $350 in taxes (less than the $600 rebate limit), you just get subsidise $350. If you had earn income of at least $3000, you would go and get at least the minimum rebate of $300.
While the rebate depends on your 2007 income, it is in actual fact a rebate toward your 2008 taxes. According to the proposed plan, in 2008, taxes would be cut from 10 percent to not anything percent on the first $6,000 dollars of taxable income for individual taxpayers.
It's like a one time tariff cut for 2008, but you get the rebate immediately instead of waiting to file your 2008 taxes. Because this is an finance payment on your 2008 taxes, your discount next year could be more (or smaller amount!) depending on your 2008 income.
No. The reason however is not as stated contained by the first answer. Unearned income is taxable. Dividends, interest, capital gain, etc. I've been paying it for years.
So what tax year are they basing the rebate on?
Answers: 2007.
Under the compromise bill passed by the Congress, you would be eligible to receive a rebate of up to $600 if you paid that much in 2007 Federal Income Tax. If you only paid $350 in taxes (less than the $600 rebate limit), you only get back $350. If you had earned income of at least $3000, you would get at least the minimum rebate of $300.
While the rebate depends on your 2007 income, it is actually a rebate toward your 2008 taxes. According to the proposed plan, in 2008, taxes would be cut from 10 percent to zero percent on the first $6,000 dollars of taxable income for individual taxpayers.
It's like a one time tax cut for 2008, but you get the rebate now instead of waiting to file your 2008 taxes. Because this is an advance payment on your 2008 taxes, your refund next year could be more (or less!) depending on your 2008 income.
It will eventually be based on 2008. But you'll get a check this spring if you are eligible based on your 2007 return. If in 2008 you would be eligible for a higher amount than you got, you'll get the rest of it then - if for 2008 you would have been eligible for less, you won't have to pay back the difference.
The way this whole rebate is defined is pretty messy, and details are still somewhat fuzzy.
Taxes withheld at difficult rate for wrong state?
The last fragment of last year, give or take a few 4 months or so, my taxes were withheld for the wrong state for one of my two job.It was withheld at a difficult tax rate.
Do I involve to do anything in one at tax time
because of this?
Will this be going to I owe a lot of taxes up front to the
topical state?
Answers: It appears that you have two issues:
1) Taxes be withheld on the incorrect state.
2) Taxes were withheld at an incorrect rate.
Let us start beside #2 since that is easier. Your employer is supposed to withhold taxes according to the W-4 you file with them. Whether or not your company uses an outside payroll company, the IRS and the states enjoy payroll tax table that determine how much is to be withheld based on your W-4. If your W-4 be ignored, your lone recourse is to point that out to the payroll person and ask them to correct it going forward. You could submit a unknown W-4 to assist them in correcting the mistake.
Now, for the first issue - withholding for the wrong state. This seem odd since they are required to withhold for the state where on earth the work was perform. Did you or your job transfer locations? If so, maybe the withholding is correct. If it is not, your best course of deed is to ask your employer to correct the mistake, but be sure you are correct about this - i.e., you indeed performed the work contained by a state different than from where it be withheld. To be honest, this is a pain within the **, and I am sure your employer will resist so decide how insistent you want to be.
If the employer refuse to correct the mistake or disagrees that it is a mistake, you will need to report returns for both states. For the incorrect state, you will need to report the wages as your W-2 reflect and then subtract them out showing them as earn and reported in another state. (Somes states own a special form to use when reporting wages differently than on the W-2. You need to record this form if your state has it.) Then, you should draw from a refund for the taxes withheld.
As for the state it should own been reported contained by, you will owe taxes with that return since you have no taxes paid within. To alleivate the lag time of getting a compensation from one state and paying to the other state, you could file within the refund state right away - e-file and request for a direct deposit of the return to speed up the process. Then you could delay the file in the other state until the more rapidly of the day you receive the return or April 15.
Something doesn't seem to be count up here. Can you provide a timeline of where you in actuality worked and then a breakdown of where on earth the income taxes were withheld?