Taxes Questions and Answers

Can my mother use my brother as a due dependent. He is 35 yrs infirm and have be surrounded by sentence to prison for 5 years?

She pays any outside fees needed as well as advocate fees used for appeal process. She pays out about $4500.00 a year.
Can any of this be written bad. And is there anything else that she could do. She is also low income, around 15000/year
Thank you


Answers: no way the state is clothing and feed him sorry
No. Someone who is incarcerated cannot be claimed as a dependent. None of those costs are deductible anyway so it's a moot point both ways.

At age 35 he would have to own lived in HER HOME for the entire year, among other requirements, to be her dependent. Pretty complicated to do that while he's in prison!
I hold to agree with everyone else. She cannot claim him as a dependent. He's within jail and the state is providing everything he requirements to live.

Good luck.
it depends on if she is paying for his bills and stuff

My employer told me to not report my tips to him but to bring trouble of them myself...?

So I have kept files for 5 months of every tip I made. My question is: Do I include the tips I give to the cooks as part of the total of the tips I made? Also, if I don't how do I catch credit for "giving" my tips away? The more tips I made the more EIC I get stern so I should include what I "gave" to the cooks right? On my w2 in nearby is only my hourly wage of $7 for wages, tips other compensation. I am using turbo export tax, will it help me to bring back to include my tips?


Answers: only if your a stripper
Tipouts, the money you give to cooks, etc from your tips, get subtracted from the amount of your tips when you report them on your charge return.

If you claim more tips than you actually concluded up with to generate your EIC larger, you are committing tax fraud - not a angelic idea. But include the amount of the tips you in fact got and kept, lately not the amount that you paid out to the cooks.
Your employer is committing import tax fraud. Unless you were on a specialized tip reporting program (ATIP, TRDA or TRAC), you be required to report them and he was required to adopt the reports.

Not only be you to report the tips to him, both you and he owed 7.65% in payroll taxes on them.

When you look at your W-2, be there an amount for allocated tips within box 8? If yes, was this more or smaller quantity than the tip records you kept on your own (remember, it's the NET amount as you do not include the tipouts).

When you report, file a form 1040. Fill out form 4137 (that's how you rate the 7.65% on allocated and/or unreported tips) and include photocopies of your tip records. This will hopefully restrain the IRS questioning you in the region of these tips even existing...you also need to write a memo explaining that your employer refused your tip collection. (There's a 50% penalty if you don't.) If you depoisted the tips into the edge every Monday, that would be even better because you could show the deposits as further proof that you got the money.

Your employer is doing you a HUGE disservice a moment ago to avoid paying 7.65% on the tips. If you are eligible for EIC, he's creating a suspicion at the IRS that you are lying about the tips you get because if you inflate your tip income you get more EIC. As it is, he's delayed your repayment.

When he gets audited (and he will be eventually), the IRS will probably audit the force too. Your having reported your tips will aid prevent you from getting penalized more.
You do NOT separate out tip-outs when you directory your tax return. You do that when you report them to your employer. IF you didn't report them to your employer respectively month as the LAW requires there is NO WAY to legitimately do so now. You own them immediately and will have to salary the taxes on them, as well as the cost on the Social Security taxes that were not rewarded previously.

You and your employer have both be breaking the law. See IRS Pub 531 for a complete discussion on tips, both for employer and employees.
You may know how to avoid the penalty if you can show possible cause for not reporting the tips to your employer...ie if he would not adopt the reporting. You will still owe the taxes

Will everyone bring back a rebate?

I heard to be exact going to be to only those who enjoy filed taxes in the past But some people dont report at all Is it for everyone or basically for tax payers?


Answers: Under the compromise bill passed by the Congress, you would be eligible to receive a rebate of up to $600 if you rewarded that much in Federal Income Tax. If you solely paid $350 surrounded by taxes (less than the $600 rebate limit), you only find back $350. If you have earned income of at smallest $3000, you would get at lowest possible 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, surrounded by 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 resembling a one time tax cut for 2008, but you catch the rebate now instead of waiting to record your 2008 taxes. Because this is an advance settlement on your 2008 taxes, your refund subsequent year could be more (or less!) depending on your 2008 income.
Not everyone will find a rebate. The rules are still being finalized but it looks close to you'll have to folder to get a rebate.

If you don't enjoy any reportable income, you aren't eligible for a rebate. The people eligible are those who own at least $3000 of earn income, people delivery social security, and disabled vet. If you are eligible but aren't required to file a return, you should database anyway this year to be sure you'll get the rebate.
Some ethnic group who normally don't want to file a charge return are still eligible to get the rebate - i.e. those on social surety who don't make satisfactory to be taxed. In directive to get the rebate, those relatives will need to profile a tax return for 2007.

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