Dendax Tax Refunds

HMRC – UK local tax authorities published recently “Income tax statistics and distributions”

2011-06-09T01:12:00.000-07:00

Income Tax is an annual tax on an individual's income for a tax year (6 April to the 5 April the following year). It is the UK Government’s largest single source of tax revenue. For this reason UK Statistics Authority prepared a large and useful statistics based on this factor.

The statistics aim to provide the taxpayers with more information on the current situation and to systematize and organize important information in one place. HMRC produce Income Tax statistics both on a liabilities and receipts basis:
Income Tax liabilities - http://www.hmrc.gov.uk/stats/income_tax/liabilities-april2011.pdf
Income Tax receipts - http://www.hmrc.gov.uk/stats/income_tax/it-stats-apr11.pdf

Liabilities are amounts of tax due on incomes arising in a given tax year, whereas receipts show amounts paid and collected in a given year. Due to lags in the payment of Income Tax, particularly that collected via Self Assessment, and other reasons, statistics on Income Tax liabilities will not match those for receipts.

If you require statistics about how much tax is actually paid and collected by HMRC in any given tax year, or information on how the tax has been collected, then you should look at statistics on Income Tax receipts.
The nature of how Income Tax is collected means it is not possible to analyse Income Tax receipts by taxpayer characteristics, for example, by taxpayer’s marginal tax rate, age or gender. However, these analyses are possible through modelling of Income Tax liabilities based on a representative sample of taxpayers using administrative data.
If you require detailed breakdowns of income taxpayer numbers and the distribution of tax liabilities across taxpayers and tax bands, then you should look at statistics on tax liabilities.
HMRC also produce detailed statistics on taxpayer incomes - http://www.hmrc.gov.uk/stats/income_distribution/menu.htm

If you are going to the USA, be careful with the tornados

2011-06-02T05:36:00.000-07:00

From our clients in USA Dendax team just understand that cluster of tornadoes has hit the US state of Massachusetts, killing at least four people.

They left a trail of destruction across 24 towns, ripping off roofs, uprooting trees and scattering debris.
Worst hit was Springfield, the third largest city in the state, where 33 injuries were reported. A state of emergency has been declared and the National Guard has been called in.

Tornadoes are rare, but not unheard of, in the north-eastern US.

State Governor Deval Patrick said the path of damage from the first and most powerful tornado rampaged from Westfield, just west of Springfield, and extended east to the community of Douglas.

A second, slightly less powerful twister, cut a path from West Springfield to Sturbridge in the central part of the state.
The damaged area is about 90 miles (145km) west of Boston.

The storm struck after a tornado alert was issued for much of the East Coast, including Philadelphia, New York and Boston.
Dendax is here to give you advices what to do in case of tornado. Dendax team strongly suggests you to:

• In a home or building, move to a pre-designated shelter, such as a basement.
• If an underground shelter is not available, move to an interior room or hallway on the lowest floor and get under a sturdy piece of furniture.
• Stay away from windows.
• Do not try to outrun a tornado in your car; instead leave it immediately.
• If caught outside or in a vehicle, lie flat in a nearby ditch or depression.
• If you know in advance that tornado is coming prepare money, ID card, any valuables a set of clothes water and food and go into a shelter.

For more information contact the Shreveport National Weather Service at 631-3669, the Louisiana OEP at 800-256-7036, or the American Red Cross at 865-9545. find out what types of disasters could occur and how you should respond. Learn your community’s warning system and evacuation plans.

Dendax is looking for local representatives!

2011-05-27T03:37:00.000-07:00

Dendax is looking for local representatives!

Related to the planned expansion of our activities and the constantly rising number of clients we have, Dendax is starting new project – we are searching for local representatives and franchising partners from all over the world! Dendax team will be happy to welcome everyone who wants to be our partner and represent our service in their region and also cover some simple criteria. Our representative qualification criteria are:

• Substantial familiarity with the trade area in which the representative will promote and offer the services of Dendax
• Willingness to diligently exert time and best efforts in attracting as much as possible clients to the services of Dendax
• Sound reputation, integrity and similar business values to those of Dendax
• Business and marketing skills
• Respect and concern for customers
• Partners must be supportive and directly involved in the business
• Partners must not cooperate, initiate contact or cooperation, sign contracts or other agreements with other tax refund companies, competitors of Dendax, as long as the representation agreement expire
• Entrepreneur ambitions and skills
• Commitment to protecting and enhancing the Dendax brand

Contact our marketing department to start cooperation with us, visit our website , or just call +420 226 809 111 or send request to marketing@dendax.com

You have received scam email from HMRC that you are entitled to a tax rebate? What should you do?

2011-05-16T05:00:00.000-07:00

Local County Council from many countries all around the world said residents have informed trading standards officers they have received suspicious ‘phishing’ e-mails purporting to have come from the taxman, complete with the HM Revenue & Customs logo.

Phishing is a tactic used by Internet-based thieves to trick unsuspecting victims into revealing personal information they can then use to access the victims’ financial accounts. These criminals use the information obtained to empty the victims’ bank accounts, run up credit card charges and apply for loans or credit in the victims’ names. In this case foreigners receive an e-mail requesting they submit their application for a refund and are directed to a link where they are asked to fill in bank details.

Pay Attention:HM Revenue & Customs does not inform people of tax rebates via e-mail. HMRC requests that any suspicious e-mails are not opened but are simply forwarded to them at phishing@hmrc.gsi.gov.uk or to your tax representatives! If you receive such suspicious email please forward it to marketing@dendax.com. We are in close touch with the HMRC and will take care that you are fully protected!

Work and Travel USA 2011? Good news: Dollar rate is rising!

2011-05-16T04:45:00.000-07:00

Latest news about US Special Forces operation in Pakistan and Osama bin Laden’s death shocked the world in the beginning of May. Spot silver prices tumbled, marking their biggest loss since late 2008, and gold fell more than $25 an ounce off a record high, extending losses on news that Al-Qaeda leader was killed in the operation in Pakistan.

While commodities like Oil, Silver and Gold have dropped in price, the US dollar is rising after the breaking news confirmed by the U.S President Barack Obama! Most of the financial analyst consider that the strengthen of the U.S. dollar is only temporary. For the long term, the policy of the U.S. central bank (Federal Reserve) still plays an important role on the U.S. dollar exchange rate movements. However the news for the rising dollar made happy a lot of foreigners and job seekers planning to visit the USA during the summer with working visas.
As we know thousands of people travel each summer to the United States in their search for better life standard, job opportunities or just overseas adventures. Most of these people are planning not only to work for living, but to be able to save money and bring them home. As most of our readers may know a work visit to the USA means a large investment, which is not affordable for most of the people. In this situation a significant part of the foreigners loan money from friends, relatives or banks. For these people the news for the rise of the dollar exchange rate is the most important information for a long time ago.

Earning and saving money is a tough task nowadays. Going to the USA is the only option for a lot of people. For this reason we encourage all our clients to fully inform themselves about all the laws and legal requirements in regards to their money.

Do you know that there is one more option to save money from your work in USA? Yes there is! The tax refund option! Registration for tax refund on www.dendax.com will refund you 100% of the paid in USA taxes! Do not miss the chance to get your money back. You can use them for investment in future trip, summer vacation, education or whatever you can think of! Just contact the Dendax team by a single visit of www.dendax.com!

The wedding of the decade?

2011-04-29T03:41:00.000-07:00

Today is the Royal Wedding.

Events are monitored by the BBC live from 6 am GMT. About 2 billion viewers are expected to watch the event!
The interest for this event is huge - so huge that the phrase "Royal wedding" has been searched in Google for nearly half a million times a day. According to analyst sites almost 7 million news and comments have been created for the daily program of the wedding day.

However, the wedding`s disapproval is huge too - page on Facebook for wedding celebrations against King has over 3300 fans, and during the ceremony there will be anti-monarchist street party in central London.
The event will be attended by 50 heads of state.

The wedding will be guarded by 5000 policemen. British police said they had arrested three people tonight in London tried to threaten the security of the upcoming wedding. Detainees were two men - 68 and 45 years old- and one woman of 60 years old. They were arrested on suspicion of preparing a public nuisance. Police said the detainees planned to attend the wedding of William and Kate. Another 19 people were arrested yesterday in London, although no details have been announced, relating specifically to the royal wedding.

Dendax wishes you the most Blessed and Happy Easter

2011-04-21T03:36:00.000-07:00

As everyone knows, Easter is in a few days. This means a lot to all of us, whether we are religious or not.

For those who are Christians, Easter reminds resurrection of Jesus Christ - the rebirth and new beginning for the whole world. So each year at the Easter`s Lent is renovating not only our bodies but our souls, opening our minds for peace and good.

The Easter traditions must be kept alive and to share with our families and friends. The colored eggs and Easter cake, symbolized the holiday`s spirit, but also the red egg, that Maria Magdalena gave as sign for the resurrection of Jesus before more than 2000 years.

Today the Easter spirit is still dynamic, full of life and brings families happiness and joy.

For those for whom Easter is anything but not a religious holiday, it means chocolate eggs and more time to spend with relatives and friends.

But for all of us it is time that deserves to delight our families and relatives. I hope everyone enjoys and is happy Easter and all year round.

Dendax.com team wishes you a blessed and happy Easter, lot`s of love and success. We will be back at your services the next week, in Tuesday. We will be more than happy to help you return all your money, paid as taxes abroad.

DENDAX AND SOCIAL RESPONSIBILITY

2011-04-14T00:52:00.000-07:00

From this year Dendax join the cause to save the Earth and stop cutting down trees! For this reason we try to reduce the minimum the quantity of paper we use!
For our clients we offer a complete online procedure to apply for tax refund. No paper, no efforts, less time!
Get your refund with Dendax! Go Green Online!
Complete your registration online, save a tree!

WHAT DOES URGENT AND FAST REFUND MEAN?

2011-04-14T00:47:00.000-07:00

Many tax companies on the market are now offering “fast tax refund”, “urgent refund”, “emergency tax refund” and other kinds of fast income tax refund. But what does this actually mean? Why does the standard procedure take between 12 and 14 weeks and how exactly do these companies refund the taxes in such a short term?

Please be aware that a fast refund received within 1 month is possible, but only for US citizens. Non-residents are not eligible for this kind of refund. So the procedure that could be done from the companies is the following:
If the status of the client is changed from non-resident to resident the client is eligible for fast refund. What's more, this action can be done without informing the clients and without the clients consent. Once the client receives the “resident” status the taxes can be refunded in the short term.
What are the negatives?

Once the status is changed to resident it is impossible to change it back. Such change is not only illegal but may also cause many problems to your clients, such as: refusal of VISA issue and Green Card application, also large penalties and in the worst case scenario prohibited entry into the USA.

When you choose to receive an urgent tax refund, reconsider as what is the true price you will be paying? If someone offer such service be sure you understand all the risks behind it!

Dendax successfully presented its services at the IAPA conference

2011-04-08T02:34:00.000-07:00

The success of Dendax attendance at IAPA Annual Conference

The Work Experience Travel Market and IAPA Annual Conference is the annual B2B event for sending and receiving organizations serving all aspects of cultural exchange, work experience, work abroad, work and travel and au pairing.
Featuring sector-focused seminars and targeted trade via the business appointment workshop, the event delivers a cost-effective opportunity for the global cultural exchange community to meet, network, learn, and do business.

This year was the first participation of Dendax in this event. The WETM conference took place in Crown Plaza in Brussels - the capital of Belgium and the administrative center of the European Union, which has also earned the city the title of the Capital of Europe. Brussels has been given its character by the coexistence of French and Flemish culture, and it is nowadays home to nationalities around the world, adding a cosmopolitan flavor to its atmosphere.

The Conference

Brussels

The 3 days spent in the heart of Europe, meeting the participants at the conference, make the Dendax team believe that networking is the best way to find new partners, we have learnt a lot about how people from different places in the world and different cultures make a successful business together!

Dendax representatives, Kalin Ivanov (Marketing Director and General Manager) and Iva Petrova (Marketing Manager), were able to meet over 40 companies from all around the world. We had carefully prepared fantastic add materials and special offers for all our appointments. We believe that we successfully gathered interest from many companies and we will maintain cooperation with companies globally!

Our representatives

   Taking part in the event is not only an option to see interesting places, and meet different people, but also to become competitive, learn more about the expectations of our clients and market trends. Dendax realise that in order to offer the best service on the market, we should stay in close contact with our partners and clients and listen to them carefully!

   We are looking forward to the next event of this kind, where we will meet current and potential partners! A big thanks to all the people we met during the appointments and to the event organizers!

Last chance to get back taxes paid in 2007

2011-03-10T06:51:00.000-08:00

Do not trow away your money paid as taxes in 2007

According to IRS more than a billion dollars are not claimed back for the year 2007. This is the last year everyone that has not asked for returning of his 2007 taxes will be able to do so. The period for claiming back taxes is three years and for the year 2007 the last possible date for filing documents for tax refunds is April 18th 2011.

About 1.1million people are not yet claimed their taxes for the year 2007. The average refund they can have is $650. This is below the average refund for this year but is not for missing. Consider this opportunity, especially when you can claim for this money online with a professional tax refund company, like ETS Refunds.

How can you get money for the 2007 year? Subscribing online and sending copy of your payment documents via e-mail or post, you can easy refund up to 100% of the taxes you have paid. Read all the information for tax refunds and who can apply, or just ask to get this info e-mailed to you for free.

But remember, if you decide to claim for a tax return for 2007, you'll also have to reclaim a 2008, 2009, and 2010 return in order to receive your tax refund for 2007. Doing this now, you can receive all your money at once in your bank account, effortless and totally secure.
If you are one of these 1.1 million people, still not reclaimed for they 2007 tax returns, consider that 18th April is too soon to wait any more.

If you know someone that has unclaimed taxes or if you has friends worked abroad, you can help them to get their money back. ETS Refund is stimulating you to help these friends with 50 EUR startup bonuses according to terms and conditions and additional 6 EUR for every single client who gets his tax refund with us.

Work and Travel programs: New affordable terms.

2011-02-23T07:25:00.000-08:00

The work and travel programs are more and more affordable. The starting investment is quite bearable - the departure is about BGN2000, while the return of investment is usually 2 or 3 times.

There are new student loans, with which young people can obtain the necessary funds, and then return them at very acceptable terms: 12-month grace period, which pays only interest and repayment period for up to 8 months after receiving it. The interest rate is 10.99%.

There are some new facilitates and fast admission to students, that were last year in the U.S. They will apply only with documents. The interview for visa, however, remains. Refusals were only 7%, according to the press service of the U.S. embassy. The most frequent causes are problems with the university or doubts that the applicant will return. Reason may be insufficient knowledge of languages (the requirement is for intermediate level).

Read more useful information about how to pay less taxes abroad, how to get back your tax or just ask us your questions ETS Refunds will be glad to help you.

Biggest ever tax refund - $2.4 billion

2011-02-23T06:23:00.000-08:00

The record $2.4 billion tax refund was officially confirmed by the Japanese court. The person that will receive the huge rebate of tax by the Japanese government is Toshiki Takei – the Director of Takefuji Corporation.

The Authorities ordered Mr Takei to pay the incredible tax of 160 billion yen ($1.92bn) for receiving shares of the company from his parents in 1999.
According to Japanese newspaper, this sum is the largest-ever tax refund for one person and is more than twice as the whole Japanese tax revenue for one year from gift taxes.

The return of tax has to be made because of proving that Mr Takei spent more days in Hong Kong, than in Japan. Proving that he had living in Hong Kong at that time and this is not only temporary residency for avoiding the tax payment, is the reason that the court state as reason for the biggest ever tax refund.

This case is indicative for the tax refunding opportunities in the world. Every case is different and ETS Refunds proceed every client’s claim for tax refund individually. We strive for the biggest possible tax refunds for our clients, hoping some day to be able to refund such enormous sum to our client.

When will HMRC finally correct the tax payment system?

2011-02-23T05:25:00.000-08:00

The “new and modernized” tax system of HMRC is not yet professional and cost millions people problems again.

Only few months after HMRC revealed that millions of people have been paying the wrong amount of tax, due to a ‘computer error’, the system has made another huge and billions costing mistake.

According to news from the last days, HMRC failed to credit millions of employees with nearly £1.3bn; they have paid in NI (National Insurance) between 2004 and 2009. This fact will affect those people when they decide to retire. Suddenly they will be prevented from claiming a full state pension.
This “error” is coming after the fact that 10 million people have to receive tax refunds by the HMRC, because of errors in the tax system.
Tax refunds have to be done to more than 10 million people, because of system errors in the tax proceeding in HMRC tax code system, last September.

It was confirmed already by the officials, that 4.3 million people are due receive a rebate of their taxes, overpaid in the last two years. There is a huge possibility that over 5.8million people to have overpaid their income taxes before March 2008 too, so they will expect tax refunds as well. But this was not yet confirmed by the officials.

Daily telegraph announced in the past months, that almost £5bn is the sum of the overpaid taxes. Only for the past two years the sum is £1.8bn. The cases of overpayment before March 2008 are about 18.2 millions. And this is only from code errors in the tax system. Is those people right to ask- when the system will no more make such mistakes?

According to Daily Telegraph some of these payments are set to happen in the next four years. The Treasury has notified the affected near 6 millions of people, paid the wrong taxes in the past two years. There is high possibility to be discovered other 7.7million people with errors in the tax payments.

HM Revenue and Customs (HMRC) computer system was upgraded recently, and exactly the new system identified the errors in the PAYE (pay as you earn) tax system. The wrong calculations of the old tax system cost an average £1,400 for nearly 1.4 million people. These people will retrieve the money next year. Millions of employers underpaid taxes in the past two years at a total amount of £2bn.
Identified by the “upgraded” system will be also employees, which have been moved jobs or accepted cash benefits or company cars from their employers.

4.3 millions of people are set to receive a tax refunds, because they have paid too much taxes in the past two years. These people are expected to receive an average tax refund of £418.

If you wonder do you have wrong payments in the past years, you can try to find out in the complicated system of HMRC, or to contact professional international tax refunding company and ask for advise and help. ETS Tax Refunds is at your services.

There is no perfect systems, but when someone`s paying his taxes he expects not to pay wrong taxes, just for computer errors.

2010-12-14T09:18:00.000-08:00

ETS wishes you Merry Christmas and Happy New Year

2010-12-06T08:28:00.000-08:00

ETS participation in ICEF Berlin
Recognised as the most important event for international educators, premium agents, work & travel professionals, as well as leading education industry service providers, the ICEF Berlin Workshop is the largest and most comprehensive agent networking event of its kind.
The 16th annual ICEF Berlin Workshop brought 1807 participants from 91 countries and 6 continents to Germany’s capital city, the most ever at an ICEF event. One of the participants in the section exhibitors was ETS Group. As one of the leading tax refund companies, ETS Group succeeded in making an excellent presentation of the company brand and services. We were also able to offer our services to many Work and Travel and Student recruiting companies, which were happy to discover how easy and effective is to cooperate with ETS.
The ICEF Berlin Workshop is the most efficient and cost-effective way to meet a large number of top international education professionals face-to-face and in one convenient location. But that was not the only reason we took part. The opportunity to meet so much people from different countries and continents was one at a time, so we definitely did not wanted to miss it.
We want to say a big thanks to all the people we met there during the meetings and social events and express our willingness to continue our contact with them.

2010-11-30T08:54:00.000-08:00

ETS Affiliates Program- You want to earn extra money, without doing anything, you`re at the right place!! Become our affiliate now and start earning!!!

http://etsgroup.eu/aff/register:7a060

ETS - the first tax refund company with own application in Facebook

2010-09-29T23:26:00.000-07:00

ETS Tax Refunds is the first tax refund company with own application in Facebook! Now all of you can be part of our company when join the application in Facebook!
How to do this:
1)Visit
2) Add the application tab to your profile

Why to do this:
By joining us in Facebook an add the application to your profile you can ear money for each your client, who get a tax refund with our company. Moreover each of you will get a start up bonus of 50 euro as a compliment form us!

Do not miss your chance to make extra money while having fun in Facebook!
We are waiting for you to join our team!

If you filed on time, you NC tax refund is coming

2010-07-02T07:19:00.000-07:00

Everybody still waiting on a North Carolina income tax refund should see their money very soon if the return was filed on time.
The Department of Revenue says it has released all refunds for returns filed on or before April 15. Checks cut in recent weeks are a little higher because the agency had to add interest if filers weren't paid before the end of May. The interest has accrued to $1.2 million.
North Carolina delayed tax refunds for the second straight year as the state's cash flow stayed uncertain in the weak economy.
The department said in a news release this week the agency is still working on returns filed after April 15.

Average tax refund to fall by 13%

2010-06-07T00:38:00.000-07:00

The average tax refund is expected to fall by 13 per cent to $2,344 this year, with nearly half of tax payers planning to use their wind fall to pay off debt, a new survey shows.

Bankwest's Taxing Time survey of 818 taxpayers also found that 42 per cent of taxpayers expect to receive a refund of less than $1000 this year, while five per cent expect to receive nothing.

One in 10 taxpayers is likely to end up owing money to the taxman this year.

The survey found that 46 per cent of respondents planned to use their refund to pay off debt, while 30 per cent would save it and 15 per cent would spend it on entertainment.

'People are being far more cautious with their returns than in previous years and using their refund to save or reduce debt,' Bankwest retail chief executive Vittoria Shortt (Vittoria Shortt) said.

She said the majority of people who will use their refund to reduce debt plan to put the money towards credit card bills, followed by paying off the mortgage.

'Gen X is most likely to use their refunds to pay down debt (55 per cent) while retirees are the least likely to use their tax return to pay back their dues (26 per cent),' Ms Shortt said.

But she said not everyone would be lucky enough to receive a refund, or even break even.

'Based on our research - which shows 11 per cent of workers were hit with a tax bill last financial year - it's safe to say more than one million Australians will again owe the tax office money come June 30.'

The survey also found that 59 per cent of respondents planned to use an accountant or tax agent for their returns, compared with 52 per cent last year.

Tax refund delay: 53,000 state income tax refunds delayed

2010-05-28T04:35:00.000-07:00

If you filed your taxes and you are expecting a refund, you may have to wait if you live in Rhode Island. Your state refund may be delayed and there's not much you can do about it.
When will you get your Rhode Island state tax refund? The state expects that all refunds will be paid by the end of the fiscal year.
Bottom line, the cash flow in Rhode Island is just not flowing.
So, if you need that tax refund money to repair something in your home or pay some bills, you might want to practice a little patience.
Right now, $36.3 million in refunds owed to 53,000 Rhode Islanders, so get in line.
If you need an idea how far behind the state is running when it comes to getting you the cash you're owed, a batch of 18,577 refunds that were processed and ready to be issued on April 26 have not been distributed yet. There are also weekly batches from May that have been held.
The state has 90 days, by law, before it has to pay interest on the late refunds. However, several legislators just introduced a bill that would force the state to pay interest sooner than the law states on delayed refunds.

State to start sending tax refund checks this month, Lingle says

2010-05-19T01:59:00.000-07:00

Improved tax collections will allow the state to start paying out tax refunds earlier than July 1, Gov. Linda Lingle announced today.
Taxpayers who filed returns in January and February can expect refunds later this month, she said.
Refunds for taxpayers with direct deposit are to begin May 21, those expecting refund checks can expect them by May 28.
Lingle previously had said the state would withhold refunds until after the start of the new fiscal year July 1 in order to save $275 million to balance the budget in the current fiscal year

Swan 'ticks the box' on tax return reform

2010-05-12T05:50:00.000-07:00

The Federal Government expects 6.4 million Australians will save time and money on their tax returns by claiming a standard deduction for work-related expenses.
In a belated but widely anticipated response to one of the Henry tax review's recommendations in the 2010 budget, the Government will offer the option of a $500 standard deduction for workplace expenses in 2012-13, increasing to $1,000 the following year.
It estimates the average tax bill of the Australians who choose to take up the offer will drop by $192, while people with higher work-related deductions can choose to continue filling out an individual claim.
Treasurer Wayne Swan said the move would allow taxpayers to "throw away shoeboxes full of receipts" and simply "tick the box".
The budget estimates show the Government expects to be $608 million worse off in the first year the $1,000 deduction comes into effect.
"This means less time with the Tax Pack, more time with loved ones, and for 6.4 million Australians it also means a bigger tax refund," Mr Swan said in his budget speech.
Interest discount
The other main change to personal taxation is a 50 per cent tax discount on the first $1,000 of interest income earned from July 1, 2011.
The Government says around 5.7 million taxpayers will benefit from the measure in the first year of its implementation, particularly low and middle-income earners.
The discount will apply to interest earned on deposits, bonds, debentures and annuities and is forecast to cost $516 million in lost revenue in the first year after its introduction.
The Government has also responded to strong criticism of its First Home Saver Accounts, which have fallen well short of the take-up originally expected.
One of the main drawbacks of the scheme was that account holders had to save for at least four years before being able to access their funds to buy a house - if they bought within four years the balance of their accounts would be rolled into their superannuation.
Under the changes, account holders will still not be able to access their funds for at least four years but can then put them towards their mortgage if they buy a house in the interim rather than having them tied up in super.
Treasury is expecting this rule change will roughly double the take-up of the scheme, which only cost the Government $12 million this financial year but is expected to cost $23.6 million next year.

Five minute fix: check your tax code

2010-05-03T01:12:00.000-07:00

The Inland Revenue has recently come in the firing line for sending out the wrong tax codes to employees. If you have changed jobs or had an extra payment this tax year you may be classed as having had a pay rise even if that was actually a one-off payment. You could therefore be paying way too much extra tax.
What does the code mean? The number that shows how much money you can earn before paying tax and the letter that shows your tax status. For example 647L means you are a straightforward basic rate taxpayer.
Where can I find it? It will be on your pay slip, PAYE Coding Notice, form P60 (year end) or form P45 - you get this when you leave a job.
Check the Inland Revenue’s website (www.hmrc.gov.uk/incometax/codes-basics.htm) to understand the different letters and numbers that make up your tax code.
What if I have lost my P45? Your employer will have to use an emergency code and if you have paid too much tax under the emergency code, you will get a refund. If you want to find out your tax code then contact your Tax Office and give them your National Insurance number and tax reference number.
What information do I need to supply to the Revenue? If you start to receive a second (or third or more) income or the amount of untaxed income you get increases or reduces.
Contact the Tax Office which deals with your tax affairs – you will find the number at the top of your tax form.
What about taxable perks? Some company ‘benefits’ or perks - such as medical insurance or a car – are taxable and are usually included in your tax code via PAYE. If you start receiving these perks it is better to tell the Tax Office straight away so that the extra tax can be collected monthly.
Otherwise the Revenue will only know at the end of the tax year when they are notified by your employer and you will end up with a big one-off tax bill.

IMF urges double tax hit on banks to refund taxpayers

2010-04-26T01:50:00.000-07:00

Banks should be slapped with two unprecedented taxes in order to compensate taxpayers for the billions of pounds lost in the financial crisis, the International Monetary Fund has recommended.
In a report delivered to G20 nations on Tuesday, but yet to be published, the Fund has urged countries around the world to impose two new taxes on financial institutions: a "financial stability contribution" which levies a small charge on their balance sheets, and a "financial activities tax", which taxes excess profits, including bonuses.
The recommendations are likely to strike fear into a banking sector reeling from the US Securities and Exchange Commission's fraud charges against Goldman Sachs.
If imposed by G20 governments, the Fund's proposals are likely to have a significant impact on the profitability of all financial institutions.
The IMF report recommended that the proceeds of the taxes should go towards both a fund to be used to repair the economic damage wrought by this and future financial crises, and towards general government revenues.
However, it did not rule out calls from various charities to put some of the cash towards development and environmental projects.
In what may be construed as a blow to the Conservatives, who have pledged to push on with a banking tax unilaterally if necessary, the Fund said that the tax ought to be imposed by as many countries as possible. However, the recommendations are likely to be seized upon by all the major parties, making their imposition extremely likely, according to insiders.
The Fund's report rules out a financial transactions tax – something marketed by campaigners as a Robin Hood Tax – as impracticable, and likely to cause economic damage by distorting flows of capital around the world. Its recommendation of a levy on balance sheets is not a surprise, although the imposition of this tax across the entire financial system rather than just banks, is more unexpected.
Few within the banking sector had anticipated that the Fund would suggest a second tax on financial activity – as revealed by Telegraph.co.uk earlier this month. However, the Fund said that a Financial Activities Tax, which is levied on banks' cashflow, would be the least distortionary way of raising money from banks.

State tax refund check's (almost) in the mail

2010-04-20T00:31:00.000-07:00

When will you get that state refund check? Officials say state income tax refunds should arrive earlier this year than last year, when many state taxpayers complained of long delays.
They aren't saying that some delays won't occur, but Bill Newton, acting director of finance, said that this year returns are being paid earlier. A major reason for this is because the Alabama Education Trust Fund, where tax refunds are stored, is a little more flush with cash this year.
That fund depends heavily on state income tax collections.
A major reason for last year's long delays in the state sending out refund checks came down to simple human nature: people who are owed money by the state want that money quickly, while people who owe the state money are not in as big a hurry to pay it.
"Most taxpayers that are due a refund file earlier than taxpayers that are liable for additional payments," Newton said in an e-mail response to questions from the Montgomery Advertiser.
That means the fund often experiences requests for refunds before it has received the payments from other taxpayers that it needs to pay them
While that can be a problem any year, surprisingly, it was exacerbated by last year's major downturn in the economy, leading to far more people filing early.
Because more taxpayers had capital losses, which can be written off on tax returns, in 2009, more were scheduled to receive refunds and more filed early.
While officials from the Alabama Department of Revenue, the department that handles tax returns, and the Alabama Department of Finance, which actually mails out the refund checks, say delays are still possible, they say the sort of months-long delays some taxpayers suffered last year are unlikely.
Before finance can even think about paying a tax refund, the Department of Revenue must process the return. That process can take time in itself. Once the return itself is processed, Revenue sends a list of taxpayers owed refunds to Finance, and Newton says that department tried to cut the checks as swiftly as possible.
Even if the state pays the refunds on time, according to the law, many taxpayers will feel the refunds have been delayed because the law gives the department plenty of time to pay the refunds.
"If the refund has not been paid by the state within 90 days after the due date, state law requires interest be paid by the state,"
That due date is April 15, not the date that the tax return is received. That means a return filed by Feb. 15 and due a refund could sit for five months before that refund is paid.
Those rules only apply if the return is filed by the deadline and has no errors. If the taxpayer is late in sending in the return, seeks an extension or makes mistakes on the return, the state is allowed more time to mail out the refund.

(It's that time again): 5 myths about paying taxes

2010-04-12T02:06:00.000-07:00

No one likes to pay taxes, but as we get ready to stand in line at the post office on the 15th, it might be useful to dispel some of the most common myths about this springtime ritual.
1. The poorest and the richest Americans pay no taxes
About 45 percent of households will owe no federal income tax in 2010, according to our estimates. Half of them earn too little, while the other half - mostly middle- and lower-income households - will take advantage of tax credits such as the earned-income credit, the child and child-care credits, the American Opportunity and Lifetime Learning credits, which help pay for college, and the saver's credit, which subsidizes retirement saving.
But even citizens who pay no income tax still pay other kinds of taxes. They pay Social Security and Medicare taxes when they work, sales taxes when they buy things and property taxes on their homes. Drivers pay gasoline taxes, and smokers and drinkers pay excise taxes on tobacco and alcohol. According to our research, more than 75 percent of us will pay at least some form of federal tax in 2010.
Those who pay no federal taxes are mostly the low- income elderly or very poor families with children. Even about half of those with annual incomes under $10,000 pay some federal tax, most often payroll taxes on wages.
And, yes, the richest Americans pay taxes, too. Though a tiny minority manage to avoid federal income tax through elaborate tax planning, 99.7 percent of those with annual incomes above $1 million will pay federal taxes this year, surrendering 27 percent of their earnings to the government. The average American taxpayer pays 18 percent.
2. Americans are overtaxed

In 2007, federal, state and local taxes claimed about $3.8 trillion, or 27 percent of U.S. gross domestic product. That's nearly $13,000 for every American. Two-thirds of tax revenue went to the federal government.
It may sound like a lot, but other developed countries collect even more. In 2006, taxes in 30 of the world's richest countries averaged 36 percent of GDP; only Mexico, Turkey, South Korea and Japan had tax rates lower than ours. And taxes in many European countries exceeded 40 percent of GDP because these nations offer more extensive government services than the U.S. does.
Americans do pay far more in individual income taxes than residents of other wealthy nations. Nearly 37 percent of U.S. tax revenue came from personal income taxes in 2006, about 10 percentage points more, on average, than in other industrialized countries. But we pay much less in sales taxes: 17 percent of 2006 U.S. tax receipts were from taxes on goods and services, or about half of the 32 percent average for rich countries.
Bottom line: We may hate our taxes, but we pay far less than people in other wealthy countries.
3. Higher taxes could eliminate the federal deficit
Washington spends more than it takes in through tax revenue, resulting in a projected budget deficit of almost $1.35 trillion in 2010, or 9 percent of GDP, according to the Congressional Budget Office. Couldn't we get rid of the deficit by raising taxes?
No. A study we conducted at the Tax Policy Center found that Washington would have to raise taxes by almost 40 percent to reduce - not eliminate, just reduce - the deficit to 3 percent of our GDP, the 2015 goal the Obama administration set in its 2011 budget. That tax boost would mean the lowest income-tax rate would jump from 10 to nearly 14 percent and the top rate from 35 to 48 percent.
What if we raised taxes only on families with couples making more than $250,000 a year and on individuals making more than $200,000? The top two income-tax rates would have to more than double, with the top rate hitting almost 77 percent, to get the deficit down to 3 percent of GDP. Such dramatic tax increases are politically untenable and still wouldn't come close to eliminating the deficit.
4. Most people's tax returns are way too complicated
No one claims that USA tax system is simple. After all, the Internal Revenue Code runs more than 3 million words, and the instructions for the widely used 1040 form take up more than 100 pages. Small wonder that three out of five tax filers pay someone to prepare their returns and that one in five uses software.
But most Americans have relatively simple tax returns. Nearly two-thirds of us claim the standard deduction and don't have to itemize our deductible expenses. And 40 percent of us file one of the simpler tax forms: the 1040A or the 1040EZ. The 2009 EZ has just 13 lines. Relatively few of us get income from any source besides wages and salaries, interest, dividends and pensions.
So, why do taxes seem so complicated? Blame Congress. Legislators use the tax code not just to collect revenue but to encourage and reward specific activities. The 1986 Tax Reform Act greatly simplified the income tax by getting rid of many special provisions and cutting the number of tax brackets. Since then, Congress has expanded the earned-income and child-care credits, created the child, saver's and education credits, established health savings and Roth retirement accounts, imposed different tax rates on dividends, created a class of long-term capital gains with a lower tax rate and doubled the number of tax brackets.
Last year's stimulus bill added temporary tax cuts that benefit house and car buyers, workers, and families with children, but it also made tax returns longer and harder to complete.
5. You should aim for a big tax refund
It's wonderful to receive a big check in the mail. And having to write a check to the IRS is never fun. But you're better off owing the government a small amount on April 15 than receiving a huge refund. Here's why: Even though it seems like you pay your income taxes once a year, you actually pay them all year long as your employer withholds taxes from your paycheck. When you file your tax return, you are refunded the difference between the tax you owe and the cash your employer withheld.
Three-quarters of Americans allow their employers to withhold too much. Income-tax refunds averaged nearly $2,300 in 2008. In effect, we're giving the government an interest-free loan. You'd be better off stashing these withheld wages in an interest-bearing bank account and writing a check to the IRS on April 15.
It's not hard to cut the amount of money withheld from your paycheck. Just give your employer a W-4 form asking to withhold less each payday. Your human-resources office should have the form, and it's easy to fill out. But there is a catch: If you owe too much (and there are specific rules defining what "too much" is), you may have to pay a penalty - usually interest on the unpaid tax. And, if you're not careful, you may end up owing more in taxes than you saved.

State's ag employment jumped in 2009

2010-03-31T03:38:00.001-07:00

Employment in Washington's agricultural industry grew last year, with nearly 12,300 more seasonal and permanent jobs added between January 2009 and January 2010, according to a state report released Tuesday.
Wages for seasonal workers also rose from an average of $8.79 per hour in January 2009 to $9.42 per hour in January 2010, according to a survey of 1,800 Washington agricultural growers. The state's minimum wage for 2010 is $8.55 per hour.
And mild weather in January boosted seasonal employment in the northcentral, southeast and southcentral regions of the state as workers were able to prune fruit trees, primarily apples. The number of seasonal ag jobs climbed by 7,110 from January 2009 to January 2010, an increase of 47.4 percent, the state Employment Security Department said.
"There's no such thing as a recession in the agriculture industry. People have to eat," said Bruce Grim, executive director of the Washington State Horticultural Association.
There were a total of 68,330 permanent and seasonal agricultural jobs in Washington in January, up from 56,030 in January 2009, according to the state. The highest number was in the southcentral area -- Yakima and Klickitat counties -- at 21,380 in January 2010.
The next highest was 17,710 in the northcentral area -- Chelan, Douglas, Okanogan and Kittitas counties -- followed by 11,680 in the southeast area of Benton, Franklin and Walla Walla counties. That was up by 1,960 from January 2009.
Seasonal jobs jumped from 15,010 statewide in January 2009 to 22,120 in January 2010, with 6,910 reported in the southcentral area in January 2010 and 5,720 in the southeast, according to the report.
"In the Tri-Cities, if things go well I'd expect by May or June we'll be up to 22,000 jobs," said Dean Schau, regional labor economist.
"I don't think people realize how huge an industry agriculture is in our state. We measure our foreign exports in billions of dollars and it's going all over the world," he said.
The report does not include jobs in food processing, which fall under manufacturing. There were another estimated 40,000 workers employed statewide in food processing, including 4,000 in the Tri-Cities alone, Schau said.
Grower Jeff Gordon of Gordon Brothers in Franklin County said he was able to keep the same seasonal work crew this spring that he's had the last several years "and that's gratifying."
Gordon added, "Agriculture has always been mislabeled as the minimum-wage payer of the American economy, and it's not true and never has been. We pay good wages for good people to do a good job."
Part of the growth in the state's seasonal labor force last year was huge apple and cherry crops, which required more workers. About 60,000 seasonal workers are needed at harvest alone to pick apples, cherries, berries, peaches, and other crops, according to the Washington Farm Bureau.
Growers largely were able to secure enough workers for harvest in 2009, according to the state Employment Security Department report. Part of the reason was the recession, which prompted some unemployed workers who had moved into the building trades or construction-related jobs to return to agriculture, Grim said.
He said, however, that he's concerned about the availability of seasonal labor seasonal this year if the economy improves and those same workers return to nonagricultural jobs, particularly if the apple and cherry crops again are large.
And current immigration policy at the federal level also could limit the number of workers, he said.
The American Farm Bureau Federation has filed a lawsuit seeking a temporary restraining order to prevent new H-2A regulations from going into effect that it fears would make federal rules more burdensome and restrict the number of available workers. The federal H-2A program allows agricultural employers to obtain visas for seasonal workers if there are not enough available resident workers.
"These new H-2A rules are onerous and not workable," Grim said. "My concern is it will reduce the number of workers when higher-paying jobs open up again in other areas of the economy."

Tax refunds up 10% due to stimulus

2010-03-23T04:27:00.000-07:00

White House officials said Monday that tax credits launched under last year's economic recovery bill have boosted the average refund by nearly 10% from the previous year.

The average tax refund for 2009 has reached $3,036, up $266 from a year ago, according to early data from the Internal Revenue Service.
Administration officials said the increase is largely due to tax benefits available under the $787 billion American Recovery and Reinvestment Act. The extra cash is a boon for the middle class and provides an important stimulus for the economy, officials said.

"The Recovery Act is a major factor behind these larger, record refunds," said IRS Commissioner Doug Shulman. "About half of all Americans haven't filed their taxes yet, so we urge them to look carefully at these Recovery provisions."

Under the Recovery Act, which was implemented last year to combat the economic crisis, taxpayers can take advantage of over a dozen tax benefits.

Among the benefits are the making work pay credit, worth up to $800 for married couples filing jointly, the $8,000 first-time home buyer credit, and sales tax deductions on new car purchases.

In addition, the act includes credits for homeowners that make their homes more energy efficient. It also expanded eligibility for a $2,500 tax credit on college expenses and made the first $2,400 of unemployment benefits tax free.

Speaking at a news conference in Washington, Vice President Joe Biden said bigger refunds will help working families recover from one of the worst recessions on record and urged Americans to take full advantage of the credits.

"These Recovery Act tax credits not only provide some needed relief for working Americans, but also help them invest in their families' futures," Biden said.

Treasury Secretary Tim Geithner added that the nearly $300 billion in tax benefits will help the economy recover by encouraging Americans to spend, which will help business and ultimately stimulates job growth.

"The more that individuals and families take advantage of these benefits, the more money is pushed back into the economy, helping all Americans as we grow our way out of this crisis," Geithner said.

However, some critics argue that the bigger tax refunds could be due to factors other than the Recovery Act credits, including a larger number of Americans withholding more last year due to unemployment or other economic hardships.

Individuals who work into the year and get laid off typically over-withheld while they are working, said J.D. Foster, a senior fellow specializing in fiscal policy at the Heritage Foundation, a conservative research group. That over-withholding can lead to larger refunds.

"There are many reasons for refunds to be up and no reason at this point to believe the tax credits from the Recovery Act were a particularly important explanation," Foster said. To top of page

Time Is Running Out to Collect 2006 Refund

2010-03-15T05:27:00.000-07:00

Here is a persistent myth about taxes: If you are getting a refund, there is no time limit on how long you have to file your federal income-tax return.
That may sound logical. After all, if you don't claim your refund on time, you're just hurting yourself.
But it's flat wrong. There are strict time limits -- and many people appear to be unaware of that.
The Internal Revenue Service announced recently that it's trying to deliver refunds totaling more than $1.3 billion to nearly 1.4 million people who still haven't bothered to file a federal income-tax return for the 2006 tax year.
To collect, these people typically must file their returns with the IRS no later than April 15 of this year, the IRS says.
"In cases where a return was not filed, the law provides most taxpayers with a three-year window of opportunity for claiming a refund," according to the IRS. "If no return is filed to claim the refund within three years, the money becomes property of the U.S. Treasury. For 2006 returns, the window closes on April 15, 2010."
The law requires that the return be "properly addressed, mailed and postmarked by that date," the IRS says. There's no penalty for filing a late return that qualifies for a refund.
Maybe some of those nonfilers didn't bother filing because the expected refund amount was tiny. But the median unclaimed refund amount for 2006 is $604, the IRS says.
The IRS offers another possible explanation: Maybe some didn't file because they didn't have enough income to require them to file for that year.
Whatever the case, make sure you're up to date on filing your returns not only for 2006 but also for 2007 and 2008. The IRS says taxpayers seeking a 2006 refund will discover that their checks will be held if they haven't filed for 2007 or 2008.
Also, the refund "will be applied to any amounts still owed to the IRS and may be used to satisfy unpaid child support or past-due federal debts such as student loans," the IRS says.
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IRS Has $1.3 Billion for People Who Have Not Filed a 2006 Tax Return

2010-03-05T03:27:00.000-08:00

Unclaimed refunds totaling more than $1.3 billion are awaiting nearly 1.4 million people who did not file a federal income tax return for 2006, the Internal Revenue Service announced today. However, to collect the money, a return for 2006 must be filed with the IRS no later than Thursday, April 15, 2010.

The IRS estimates that the median unclaimed refund for tax-year 2006 is $604.

Some people may not have filed because they had too little income to require filing a tax return even though they had taxes withheld from their wages or made quarterly estimated payments. In cases where a return was not filed, the law provides most taxpayers with a three-year window of opportunity for claiming a refund. If no return is filed to claim the refund within three years, the money becomes property of the U.S. Treasury.

For 2006 returns, the window closes on April 15, 2010. The law requires that the return be properly addressed, mailed and postmarked by that date. There is no penalty for filing a late return qualifying for a refund.

The IRS reminds taxpayers seeking a 2006 refund that their checks will be held if they have not filed tax returns for 2007 or 2008. In addition, the refund will be applied to any amounts still owed to the IRS and may be used to satisfy unpaid child support or past due federal debts such as student loans.

By failing to file a return, people stand to lose more than refunds of taxes withheld or paid during 2006. For example, most telephone customers, including most cell-phone users, qualify for the one-time telephone excise tax refund. Available only on the 2006 return, this special payment applies to long-distance excise taxes paid on phone service billed from March 2003 through July 2006. The government offers a standard refund amount of $30 to $60, or taxpayers can base their refund request on the actual amount of tax paid. For details, see the Telephone Excise Tax Refund page on IRS.gov.

In addition, many low-and-moderate income workers may not have claimed the Earned Income Tax Credit (EITC). The EITC helps individuals and families whose incomes are below certain thresholds, which in 2006 were $38,348 for those with two or more children, $34,001 for people with one child and $14,120 for those with no children. For more information, visit the EITC Home Page.

Current and prior year tax forms and instructions are available on the Forms and Publications page of IRS.gov or by calling toll-free 1-800-TAX-FORM (1-800-829-3676). Taxpayers who are missing Forms W-2, 1098, 1099 or 5498 for 2006, 2007 or 2008 should request copies from their employer, bank or other payer. If these efforts are unsuccessful, taxpayers can get a free transcript showing information from these year-end documents by calling 1-800-829-1040, or by filing Form 4506-T, Request for Transcript of Tax Return, with the IRS.

2010-02-24T02:30:00.000-08:00

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UK Government Pays Eastern Europeans to Go Home

2010-02-08T04:02:00.000-08:00

UK government is searching for a way to limit unemployment under crisis.

British government will cover the costs for air tickets for homeless immigrants in order to make them go back home. Government measures are due to crisis and rising unemployment.

In regions where the percentage of unemployed is high authorities will buy air ticket for those Eastern Europeans who want to go home.

Many of them have no access to social benefits after losing their job.

One-third of the immigrants arrived on the Island under students visa. In order to reduce abuses, government will lower the issuing of this type of visa and will introduce stricter criteria. Only applicants with good English will be approved.

Students admitted in the country will have the right to work 10 hours weekly instead of 20 hours weekly, as it was until now.

2009 tax break may cost some taxpayers a refund

2010-02-02T01:27:00.000-08:00

Expecting a fat tax refund this season? Not so fast.

Part of the economic stimulus law enacted a year ago created a new tax break, called the Making Work Pay tax credit. It reduced the amount of federal income tax withheld from workers’ paychecks.

But the new law had some unintended consequences. As a result, some taxpayers may receive a smaller refund during the current tax-filing season — or owe tax, said Jacquelyn H. Tracy, president of the Rhode Island Society of Certified Public Accountants.

Overall, about 15.4 million taxpayers nationwide — about 10.4 percent of the total — may be in this predicament, according to projections by the U.S. Treasury’s Inspector General for Tax Administration. In Rhode Island, that would work out to about 53,000 taxpayers.

It may come as a surprise especially to those taxpayers who count on receiving a federal income tax refund each year. They typically have more than enough in federal tax withheld each year “with the hope of getting something back,” said Tracy, partner in Mandel & Tracy, LLC, a CPA firm in Providence. “Many people use it as a savings plan,” she said.

At issue is economic stimulus legislation approved by Congress and signed into law by President Obama in February 2009. The law reduced the amount of federal income tax withheld from most workers’ paychecks throughout much of 2009. The idea was to boost the amount of workers’ take-home pay, so they could buy more goods and services and help boost the economy.

For many taxpayers, the reduction in withholding for 2009 should equal $400 for someone who is single, $800 for a married couple filing a joint return, said Robert J. Sclama, former head of the Rhode Island Society of Certified Public Accountants’ federal and state tax committee.

Those who had the correct amount withheld last year should see no problems on their returns now as a result of the new law, said Sclama, who runs his own tax-consulting and financial-planning practice in North Providence.

But some people, through no fault of their own, may have had too little in tax withheld from their pay last year. As a consequence, they may now wind up with a smaller refund than expected — or a balance due. That includes taxpayers in the following categories, according to recent reports by the U.S. Treasury and the Congressional Research Service:

•A single taxpayer who worked more than one job last year.

•A married couple, filing a joint return, where both spouses worked — and either or both worked more than one job.

•Taxpayers who receive pensions.

13 tax changes you need to know before filing your 2009 returns

2010-01-25T00:59:00.000-08:00

If it seems like tax laws are changing every time you time around, it's not your imagination. Over the past eight years, changes to the Tax Code have been made at a rate of more than one a day. According to the office of the National Taxpayer Advocate, there were 500 changes in 2008 alone, many of them related to the 2009 tax year.

Trying to make sense of it all can be overwhelming. To help you out, here's a rundown of 13 changes that may impact your 2009 taxes:

Making Work Pay Credit. In order to put a little more cash in consumers' pockets last year, the government reduced the amount it withheld from workers' paychecks. Most W-2 earners have already felt the effect of the Making Work Pay Credit, which totals 6.2% of earned income. The credit, which cannot exceed $400 ($800 if married filing jointly), should have been paid out as reduced federal withholding over the year. If you're self-employed and haven't already adjusted for the credit, you calculate the credit on your 2009 federal income tax form. The unemployed and pensioners don't qualify for the credit, unless they receive earned income. You also don't qualify for the credit if your modified adjusted gross income (AGI) is $95,000 or more ($190,000 if married filing jointly), you are a nonresident alien, or you can be claimed as a dependent on someone else's return.
Economic Recovery Credit. Retirees and/or disabled persons were eligible to receive a one-time payment of $250 during 2009; eligible government retirees (generally, those receiving a government pension or annuity) qualify for a similar payment. Any amounts received as part of the Making Work Pay Credit should be reduced by any economic recovery payments or credit for government retirees. For example, if you're working and receiving Social Security, your Making Work Pay Credit would only be $150: $400 less the $250 economic recovery payment.
Unemployment Compensation Partially Exempt. The current unemployment rate has more than doubled since the recession began in December 2007. To offer some relief, taxpayers who received unemployment compensation for 2009 may exempt up to $2,400 of that compensation for federal income tax purposes. Amounts over $2,400 are still taxable.
COBRA Subsidy Not Taxable. Plenty of unemployed workers found themselves facing some seriously steep COBRA health care coverage premiums last year. To help them afford the health care coverage, the government offered to subsidize 65% of their payments. Luckily for those who needed to take advantage of that perk, the subsidy is not taxable for federal income tax purposes.
AMT Relief. There is yet another one-year "patch" to shield middle class taxpayers from the AMT (Alternative Minimum Tax). The AMT, which disallows tax preference items such as deductions for medical expenses and state and local property taxes, was initially targeted toward high-income taxpayers but has increasingly affected middle class taxpayers because of relatively low exemptions. For 2009, the exemption amount is bumped up a few hundred dollars to $70,950 for married couples and $46,700 for individual taxpayers.
Child Tax Credit Income Limit Lowered. As the cost of raising children has increased, families are looking for ways to cut costs. The child tax credit, which is in addition to the personal exemption for children, has allowed many families to put more money back in their pockets, since it is a dollar for dollar reduction in the amount of tax due. If you don't owe any tax, you may still qualify for a refund if you meet other criteria. For 2009, the income threshold for the child tax credit has been temporarily lowered to $3,000 (the income threshold for 2008 was $8,500). This means that, so as long as you have one or more qualifying children and earned income of more than $3,000, you may be entitled to a refund.
Increase in Earned Income Tax Credit (EITC). The EITC is a refundable credit aimed at providing relief from payroll taxes for low wage earners. For 2009, the EITC has increased for people with three or more children and for many married couples filing jointly. The maximum amount of income you can earn and still qualify for the credit has also increased.
"Kiddie Tax" Tweaked. The so-called "kiddie tax" is the tax that applies to investment income reportable by children. Generally, if a child is under the age of 18, or under the age of 23 and a full-time student, the parents have the option to report the income on their own return or on the child's return (at the child's tax rate) so long as the income is under a certain amount. For 2009, the amount of taxable investment income a child can have without it being subject to tax at the parent's rate has increased to $1,900.
American Opportunity Tax Credit.The Hope Scholarship tax credit has been temporarily expanded and now applies to the first four years of college; the increased credit is now referred to as the American Opportunity Tax Credit. The credit provides 100% credit for the first $2,000 and 25% for the next $2,000 on qualified expenses such as tuition and books; it's also 40% refundable, meaning even taxpayers who have no tax liability can receive up to $1,000.

Personal Casualty and Theft Loss Floors Increased. The "floor" for personal casualty or theft loss has been increased. Under the old rules, a taxpayer could only deduct personal casualty and theft losses if the yearly total of those losses exceeded 10% of his or her AGI after subtracting a $100 floor per event. The floor for each casualty and theft loss for 2009 has increased from $100 to $500. Additionally, for 2009, the 10% of AGI limit for losses in federal disaster areas has been eliminated; you can find a list of federal disaster declarations for 2009, including those for Hurricane Ike and Hurricane Gustav, on FEMA's Web site.
Sales Tax Deductions for New Car Buyers. Taxpayers can deduct state and local sales taxes paid on the purchase of a new car, light vehicle, recreational vehicle, or motorcycle on their federal income tax; leased vehicles do not qualify. In states without a sales tax, certain other taxes or fees may be deductible. There's a $49,500 limit on the cost of the vehicle and income restrictions apply (upper limits of $125,000 for individual taxpayers and $250,000 for married taxpayers). The deduction is available for qualifying purchases made after February 16, 2009, through the end of the year: best of all, you don't have to itemize to take advantage of the deduction.
Temporary Credit for Home Buyers. The temporary, refundable first-time home buyer credit has been increased to $8,000 for sales of homes made after December 31, 2008, and before May 1, 2010. The requirement that the credit be paid back over 15 years has been removed; however, if you sell the home within three years (some exceptions for hardship and divorce apply), the credit must be paid back. Income limits apply. A reduced credit up to $6,500 is available for homeowners who have lived in their homes at least 5 consecutive years out of the 8 years before buying and moving into a new principal residence; this new credit is for homes purchased after November 6, 2009.
Expansion of Residential Energy Credits. The residential energy property tax credit has been increased from 10% to 30%, with a cap of $1,500, total, for 2009 and 2010. Qualifying modifications include energy efficient insulation, exterior windows (including skylights) and doors, central air conditioners and some water heaters or furnaces.

If you're not sure whether any of these changes apply to you, ask your tax professional. And keep checking for more tax information and tips throughout the tax season!

Tax refund deadline cut this year under new law

2010-01-04T00:46:00.000-08:00

A new state chief information officer is included in 2010 laws.
OKLAHOMA CITY — About a dozen new laws are taking effect Friday, including an effort to speed tax refunds and the creation of a chief information officer for the state.
Senate Bill 11 reduces the amount of time that the Oklahoma Tax Commission has to remit tax refunds. For electronic returns, a refund must be made in 20 days rather than 30 days, said Rep. Randy Terrill, D-Moore, who sponsored the bill in the House.
For paper returns, the agency must provide a refund within 90 days instead of 150 days, Terrill said.
If the Tax Commission misses the deadline, it must pay interest of 1.25 percent a month, according to the agency.
Terrill said the agency has indicated it would not have a problem complying with the measure.
Most taxpayers are not interested in making an involuntary loan to the government without some interest being attached, Terrill said.
"We wanted to ensure there was an incentive for the Oklahoma Tax Commission to process a timely filed return and return the money in a similarly timely fashion," he said.
Efforts to install a chief information officer are under way.

Governor Lingle Proposes Delaying State Tax Refund Checks

2009-12-22T02:33:00.000-08:00

Don't bank on a quick state tax refund to make it through the spring.

The governor wants to hold on to your money for a little while to patch a budget gap.

Next year's tax refunds would be paid in July according to the governor's latest budget plan.

A sting to the counties could end up hitting your pocket too, if they have to make up for lost hotel tax.

When you file your taxes for 2009, expect to wait until july 2010 for any refund.

That's because the governor needs 275 million dollars from refunds to wait a bit before mailing out, in order to lapse into the next fiscal year on the state books

"Those funds will get back to people, they will get into the economy, they're not permanently take out, but that delay allows us to get through that 2010 budget crisis that we have right now," said Governor Lingle.

A crisis that's grown to a 1.2 billion dollar shortfall over just the rest of this fiscal year plus the next one.

We asked what about a crisis of a family's budget waiting on that money.

"This is a heads up that you need to start planning," said the Governor.

What about cash in hand?

2009-12-21T02:37:00.000-08:00

It's illegal for your employer to pay you cash in hand without deducting tax and National Insurance contributions from your wages.

If you accept money in this way, you risk losing your employment rights and the right to some benefits, such as:

maternity or paternity leave
sick pay
Jobseeker's Allowance

In addition you could end up having to pay the tax and National Insurance contributions yourself.

14 companies participated in the days of career development in the HST

2009-12-04T01:15:00.000-08:00

14 Bulgarian and international companies participated in the second forum "Career Development Day" in the VTU St. Cyril and Methodius. The forum was organized by the Faculty of Philology and university career center. Participants in the forum are leading Bulgarian and international companies that offer training and employment of graduate students and young people who speak foreign languages.Our company was one of them.Objective was to unite efforts identify new opportunities for professional development, and assist employers in recruiting suitable staff. More than 500 graduates of VTU visited the forum.

IRS Tax Returns Explained

2009-11-26T02:02:00.000-08:00

If you earned above $3500 in 2008 or $3650 in 2009, you are obligated by law to file a USA tax return to the IRS at the end of the tax year. The US tax authorities are very strict and so you should always file a tax return to avoid any unnecessary problems with US visas in the future.

If you do not file your tax return civil penalties may be imposed. These can be a deducted refund or in cases when you owe the IRS – taxes you need to pay will be forever assessed with interest and penalties.

If you are a US resident criminal charges may be brought against you. Not filing a tax return is a criminal offense punishable by one year in prison for each unfiled year and a fine of $25000 each year.

If you need to pay taxes and you filed your tax return but did not pay them, there is no criminal penalty.

Therefore, filing an IRS tax return will most likely to get you money back and will avoid legal problems in the future with visas and penalties.
Preparing and filing a US tax return involves tedious work. Dealing with piles of complicated forms and documents is both confusing and time-consuming. To save this hassle, many people chose to get a tax refund company such as on their behalf. Please note that if you are a non-resident you are not allowed to e-file your tax return. etsrefunds.org to file their US tax return

Employment agencies use workers' tax allowances to boost profit

2009-11-20T01:34:00.000-08:00

Employment agencies are exploiting a loophole in the taxrules to take advantage of low-paid workers' tax-free allowances, allowing them to improve their own profits rather than pass on the full benefit to employees.
Tax experts say the agencies could be saving as much as 50p a worker per hour, with only 10-15% of the benefit passed on to the temporary workers.
In sectors such as food processing and manufacturing, margins for employment agencies are often as low as 80p to £1 a worker per hour, giving those agencies who exploit the loophole a distinct advantage. Competitors who question the legitimacy of the practice claim it is distorting the market.Industry figures are calling on HMRC to clarify the situation. Andrew Gilchrist, managing director of multi-sector recruiter Interaction, said: "Someone needs to come out and say whether they are legal or illegal. It's an abuse; the exchequer is losing out and UK workers are losing out."
The schemes reduce the level of temporary workers' wages that are subject to tax. They voluntarily sacrifice part of their pay: tax and national insurance are calculated on the remainder and they are reimbursed through non-taxable expenses.
Mike Cooper, director of Best Connection, a national supplier of temporary workers, said: "More and more companies are using the tax-free allowances of individual workers not to benefit them, but to fund their own business and enable them to offer reduced and unsustainable margins."
A spokesperson for Northern Foods, which makes Marks & Spencer ready meals, Fox's biscuits and Goodfellas pizzas, said the company is aware that one of the agencies it uses has adopted a salary sacrifice scheme, but that the company makes no financial gain.
The debate about the legitimacy of the schemes rests on whether the expenses paid by the employer have genuinely been incurred by the worker, and whether paying national insurance and tax on an amount that is less than the national minimum wage is legal.
In many cases receipts do not have to be produced by the worker to prove the expenses were incurred, because HMRC has granted dispensations allowing the payment of fixed-rate allowances for things such as travel and meals.
Lesley Fidler, tax director at accouar £93 worth of travel that week?"
Proponents of the schemes point out that the workers involved receive more take-home pay. Marie Samuels, employee and temp benefit manager for gap personnel, said: "We went into these schemes because the larger agencies [which are already using them] go into the market and set the margins. It's a win-win, we can compete for business, the temp has an increase in wage and obviously we get savings ourselves."
But reducing the size of an employee's national insurance contribution could also have an impact on their access to contributory tax benefits, such as pensions and jobseeker's allowance.
A spokesperson said HMRC has "commenced compliance activity to identify and take action against those employment businesses and umbrella companies which are operating in contravention of tax, national insurance or national minimum wage legislation".
The Department for Business, Enterprise and Regulatory Reform's guidelines state: "If you refund money to a worker, which the worker has spent on something to do with their job, the refund does not count as national minimum wage pay."

Millions may have to repay part of stimulus tax credit

2009-11-17T01:49:00.000-08:00

Some 15.4 million taxpayers could receive smaller refunds than they expected or owe taxes next year because they did not have enough money withheld from their paychecks as part of the Making Work Pay tax credit program, according to a report issued Monday.
The tax credit advocated by President Obama and enacted in February as part of the $787 billion economic stimulus plan lowered taxes for all but the nation's highest wage earners. It cut payments by as much as $400 for individuals and up to $800 for couples. Most workers started receiving the tax credit earlier this year as small reductions in the amount of taxes withheld from their paychecks.
But federal tax tables that guide those withholdings did not account for some wage earners whose personal situations complicated the tax credit calculation. That category included some workers with more than one job, some married couples in which both spouses work, and some Social Security recipients with jobs.
The Treasury Department's inspector general for tax administration estimated that more than 10 percent of all taxpayers who file individual tax returns for 2009 could owe additional taxes because of the complexities of the Making Work Pay credit. Of that group, the IRS estimated that 65,000 taxpayers could technically face penalties for underpaying their taxes in 2009, although the agency said it would waive such fees.
While the inspector general's report estimated that millions of taxpayers will be negatively affected by the tax credit, a Treasury official said the vast majority will only receive a slightly reduced refund and not an out-of-pocket tax liability on April 15.
"These taxpayers actually receive a portion of their refund throughout 2009 in the form of reduced withholding, which is exactly what the law intended," Richard Byrd Jr., commissioner of the IRS's Wage and Investment Division, wrote in response to the report.
Overall, more than three-quarters of all taxpayers receive returns, which last year averaged more than $2,800, according to the IRS.
In addition, an undetermined number of workers eligible for the Making Work Pay tax credit will also receive other tax credits passed as part of the stimulus plan, including credits for education, energy efficiency, sales tax paid for cars and a tax credit for first-time homeowners. Those credits should further reduce the number of taxpayers left with greater tax liability than they expected, IRS spokesman Eric Smith said.
"Making Work Pay was designed to deliver much needed boosts to the paychecks of 95 percent of all working Americans," Treasury spokeswoman Nayyera Haq said in statement. "Since enactment, more than 110 million families have benefited from as much as $60 in additional take home pay each month to put toward their family budgets, serving as a steady boost to spending and consumption."

The state of Minnesota is running short of cash.

2009-11-13T02:29:00.000-08:00

It would mark the first time the state has had to borrow money for bills in 25 years, when it took out $1.6 billion short-term loans over a four-year stretch and had to pay almost $125 million more to service them.
Minnesota collects $15 billion a year from various taxes, but money goes in and out the door unevenly throughout the year.
Minnesota, like most states, has a cash-flow problem caused by the worst recession since the Great Depression, Hanson said. The state has collected $233 million less in taxes than was forecast in February.
Because of the cash shortage, the state this month delayed $128 million in corporate tax refunds to 451 businesses and $16 million in sales tax refunds to 294 taxpayers, state Revenue Commissioner Ward Einess said. He plans to pay those refunds in December to avoid having to pay interest on payments that are more than 90 days overdue.
State officials won't know if they will have to borrow money for day-to-day operations until state economist Tom Stinson issues his next revenue forecast Dec. 2, Hanson said. The state wouldn't have to borrow until March, April or May, its "low-cash months."
The state's top-level credit rating could be in jeopardy if it does borrow for operating expenses, Hanson said. That would force the state to pay higher interest rates on bonds it issues for construction projects.
The last time the state used short-term borrowing was during the 1981-84 recession. It borrowed $1.6 billion and paid $124 million in interest on those loans.

Warning over email tax-back scam

2009-11-11T01:07:00.000-08:00

Government officials are warning the people of Bracknell of a scam involving a staggering number of emails offering people the chance to claim tax back.
HM Revenue & Customs (HMRC) has issued the warning this month of a record number of online attacks, known as “phishing”.
And officials say in just one day this month, they received more than 10,000 reports of the fraud and 83,000 in a month.
Last month, getbracknell received a number of phone calls from people concerned over being rung up out of the blue by companies offering the chance to win back bank charges if they give their account details out over the phone.
In this scam, the sender claims the recipient of the email is due a tax return and then asks for credit card or bank details.
Customs officials are warning anyone who hands over the information risks having their account emptied or their bank details being sold to criminal gangs.
They also warn the latest version of the online scam operates from websites which change their domain name every 20 minutes.
John Harrison, head of HMRC customer contact, said: “We only contact customers who are due a refund in writing by post.
“We never use emails, telephone calls or external companies in these circumstances.
” He also advised customers not to click on any website or links contained in suspicious emails or open attachments. “I would strongly encourage anyone receiving such an email not to open it.

Receive your FREE refund NOW!

2009-11-09T01:30:00.000-08:00

Tell your fiends to register on our website www.etsrefunds.org and receive their own tax refunds.
Everyone can apply for free tax refund.
Your friends need to register and enter your client number in the field “How did you hear about our services? “
Minimum 3 clients who entered your client number as referral must finish the process and receive money.
At the moment we inform you for receiving your money you Have to ask for your Free Tax Refund.
If you fail to ask on time for your Free Tax Refund normal charges might be deducted.
It is unique and guaranteed offer that you will never find. Don't miss it!

2009-11-09T00:10:00.000-08:00

We have a great news for all of our customers and partners!
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If you are customer you can contact us directly on our skype

If you are our partner you can contact us directly on our skype

Could the IRS be trying to send you money?

2009-11-06T00:15:00.000-08:00

The Internal Revenue Service is looking for Tennesseans who are due to receive a combined $1.77 million in the form of 1,849 refund checks that were returned to the IRS by the U.S. Postal Service due to mailing address errors.
“IRS wants to get these checks to their owners as quickly as possible,” said IRS spokesman Dan Boone. “All you have to do is update your address to get your refund check reissued.”
The Internal Revenue Service is looking for 397 Nebraskans and 555 Iowans — but not because they owe the taxman money.
In fact, it’s the other way around. These taxpayers had their tax refund checks returned to the agency as undeliverable, IRS officials said Thursday.
In Nebraska, the checks total $359,002 and average about $904 a check. Douglas County leads the state in the number of unclaimed refunds, 141, which average $1,040 a check and total $146,693.
In Iowa, the checks total $495,001, averaging $894 a check. Polk County leads that state with 103 unclaimed refunds, averaging $811 a check and totaling $82,753.
Nationwide, 107,831 taxpayers had about $124 million in refunds returned to the IRS, an average of about $1,148 per check.
Tax refund checks often are returned as undeliverable when taxpayers move without notifying the IRS or the U.S. Postal Service.
“We want to make sure taxpayers get the money that’s waiting for them,” said IRS spokesman Christopher Miller. “Maybe you got married or moved and just forgot to update your information with the IRS.
”Taxpayers can update their addresses and claim refunds in several ways."

Tax Policy

2009-11-04T01:25:00.000-08:00

In 2007, the most recent year for which statistics are available for both individuals and corporations, total corporate income tax liability was $413.2 million and total individual income tax liability was $5.6 billion.
The huge disparity between individual and corporate taxes results from the different ways in which the two groups are taxed.
Individuals pay taxes on all of there income. They can make deductions for mortgage interest, medical expenses, and a few other types of expenses, but in general, they pay taxes on everything. Basic costs of living, such as housing, food, and transportation are non-deductible. Corporations pay tax on their net income, after they deduct all of the expenses of doing business.
If a corporation requires vehicles to conduct its business, all of that expense is deductible. If an individual requires a vehicle to go to work, they pay tax on all of the income used to fund that expense.
If a corporation operates from offices, factories, or warehouses, their costs to purchase and maintain those buildings are deductible.
If a corporate employee needs to stay in a motel or rent an apartment, those costs are deductible. If an individual lives in a house, they pay taxes on the income that they pay their rent or mortgage principal with. If a corporation buys food or liquor for a party or company event, those costs are deductible. If an individual buys food for their family, they pay tax on the income used to buy that food.
Aside from the extremely different tax rules that apply to corporate and individual income, corporations and individuals are also taxed at different rates.
Corporations pay 6.6% tax on their net income.
Individuals pay taxes on their entire income on the following progressive scale:
$2850 – 5%
$7150 – 7%
Over $7150 – 9%
The “effective tax rate” for taxable income, which is total income minus deductions, is 7.5% on average for all individuals. Individuals at roughly the $40,000 dollar income level pay a higher percentage of their income in taxes than corporations, and those rates continue to go up the more they make.
Individuals pay 13.5 times as much in income tax as corporations. To put this another way, the people who do the work pay 13.5 times as much to maintain government as the shareholders who produce nothing, but collect the profits. This is because the shareholder, who produces nothing, is taxed at a lower rate, and has a completely different set of tax rules, which shield most of their income from taxation.
Basic fairness would dictate that all individuals be taxed according to the same laws. A corporation is only a collection of individuals. A corporation is its shareholders. Shareholders, through the State established legal fiction of corporation, work and do business according to a completely different set of rules than individuals, and their activities are taxed in an entirely different manner.
There are endless arguments about this issue, but if you step back and look at it objectively, it is really just a bit of gimmickry that clever people have invented in order to cheat others out of what is rightfully theirs. No matter how many legal arguments, statistics, and economic theories someone sights, they can never overcome the basic fact that in the end the result is two different sets of rules for the same supposedly equal people who are constitutionally entitled to equal treatment under the law.
If you read my piece on the history and ethics of taxation, then you will understand that this situation is a result of the basic law of taxation: the powerful tax the weak, and the rich tax the poor.

California Stealin'

2009-11-04T00:38:00.000-08:00

Desperation grabs for revenue are nothing new in politics, but California is once again leading the way in creative financing.
To help close yet another gaping budget deficit, now estimated to be $7 billion this year and reach as high as $20 billion next, Sacramento lawmakers have authorized a 10% increase in the amount of taxes withheld from worker paychecks starting November 1 and through 2010.
The extra withholding tax will reduce Californians' take-home pay by about $1.7 billion for the year. But the lawmakers say this isn't a tax increase.
OK, how about calling it a compulsory interest-free loan from taxpayers to the state? According to the Franchise Tax Board, 10,004,000 Californians overpaid their state taxes last year and received an average refund of $903. The withholding penalty is expected to snatch between $20 and $90 a month from middle-class families.
For those feeling the pinch of recession and living paycheck to paycheck, that penalty will hurt. Of course, the government is obliged to return this money next spring when workers get their tax refunds, so this is the ultimate budget gimmick. It borrows from taxpayers now and deepens the budget hole next year.
And we almost hate to ask: What happens come April if the state doesn't have enough money to pay the tax refunds it owes its citizens? Will taxpayers get IOUs the way state contractors did last year when Sacramento ran out of money? Meanwhile, Governor Arnold Schwarzenegger and the legislature now face their sixth "extraordinary session" to balance the budget. Income tax rates went up last year by 0.25%, bringing the top rate to 10.55%, but receipts are already coming in $1 billion below projections, according to the state controller.
The politicians could use this continuing crisis as an opportunity to reform the state's tax code with lower rates and fewer deductions and loopholes, as recently proposed by the governor's tax reform commission. But that plan has been panned by the ruling classes in Sacramento. They claim to want to steal only from the rich, but their latest withholding ruse is showing that they'll steal from anyone with a paycheck.

35 million letters delayed in UK post strike

2009-11-02T05:22:00.000-08:00

Some 35 million pieces of mail have been delayed by this week's British postal strikes, Royal Mail said Friday.
Thousands of postal staff have walked off the job in three days of strikes this week in a dispute over modernization plans, job security, and workloads. It follows two consecutive days of nationwide strikes last week that resulted in limited collection and delivery of mail.
Royal Mail said it had cleared "virtually all delays" caused by last week's strikes and was working to clear delays caused by the work stoppage this week.
More than 43,000 postal staff across the United Kingdom went on strike Thursday at mail centers and distribution units, according to Royal Mail and the Communication Workers Union, which represents the striking workers.
Some 400 people in three cities in England went on strike Friday, and 77,000 delivery and collection staff, including postmen, were due to strike Saturday, the union said.
The two sides came together for talks Thursday night and again on Friday to seek a resolution, according to a spokesman at the Trades Union Congress, which is mediating the dispute.
Union members have complained that Royal Mail has not consulted the union on its plans to bring in changes such as new machines that might replace certain positions and lead to layoffs. They are also unhappy that Royal Mail hired thousands of temporary workers ahead of the strikes.
The walkouts have caused concern among businesses and retailers, especially those who rely heavily on direct mail, that the effects could last through Christmas.

Scam tax refunds 'reach record'

2009-10-30T08:33:00.000-07:00

A record 83,000 scam e-mails offering fake tax refunds were reported to the UK's tax authority in September.And on one day this month, 10,000 reports about "phishing" e-mails were made to HM Revenue and Customs (HMRC). The messages tended to start with a claim which read: "Following a review of your fiscal activity you are due a refund of tax of £x." But HMRC stressed that it would never inform people of a tax rebate by e-mail or on the telephone. Sucker listsJohn Harrison, head of HMRC customer contact online, said that the messages tried to extract people's credit card and bank account details. This left them at risk of their savings being stolen and the details sold on to professional criminal gangs, in so-called "sucker lists". The latest version of this scam originated from various different websites, which operated for 20 minutes before changing their domain name. "We only contact customers who are due a refund in writing by post. We never use e-mails, telephone calls or external companies in these circumstances," Mr Harrison said. He urged people not to click on linked websites on these scam e-mails, but to report these e-mails and delete them. This is the latest in a series of warnings about scam messages taking the HMRC name. Losses from all scams in the UK are estimated to total £3.5bn a year. The Office of Fair Trading has calculated that 3.2 million people are caught out by scams each year.

Senate OKs reducing tax refunds for college loan delinquents

2009-10-30T01:21:00.000-07:00

The Senate Finance Committee on Thursday voted to allow the state Division of Taxation to reduce a person’s state income-tax refund if the person is delinquent on certain college loans issued by the Rhode Island Student Loan Authority.

The committee approved the measure, 6 to 0. The House unanimously approved it on June 26.

Rhode Island already allows for offsets against state income tax refunds for delinquent federal taxes, state taxes, college loans involving the Rhode Island Higher Education Assistance Authority and some other items.

At a State House hearing on Thursday, Charles Kelley, executive director of the Rhode Island Student Loan Authority, said that the offset provision would make the agency’s borrowings more appealing to firms that rate bond issues.

As a result, the agency could borrow at lower interest rates, and issue loans to students and families at lower interest rates, he said.

State Sen. Daniel DaPonte, D-East Providence, chairman of the Senate Finance Committee, said that the provision would allow the agency to borrow for less and pass those savings on to students and their families. “That’s the big-picture goal,” DaPonte said in an interview after the hearing.

The agency oversees a portfolio of about $1.1 billion in education loans, including loans that are guaranteed by the federal government and about $450 million in private education loans which are not federally guaranteed, Kelley said.

The bill would allow the offset for the agency’s private education loans, he said.

Income Tax Return Clarification

2009-10-29T02:54:00.000-07:00

What are income tax returns? Each spring is income tax return time. We all know about filing our taxes, paying them, and getting our tax refund, but somehow the term “tax return” is not always clearly understood.

The annual process begins in January through March of every year when wage earners receive their wage and tax withholding certificate from their employers. Students will receive statements of tuition, scholarship, and aid information covering the previous year. An income tax return form is then used to take the amount earned and figure out the correct dollar amount of taxes for which the individual is liable.

Although a person filing the papers detailing earnings, deductible expenses, and taxes may have some or all of their withheld taxes returned to them, that is not what is meant by the term “income tax return”. Actually, what “tax return” refers to is three parted. First, you are letting the government know, or are returning a report on, how much you made in the previous year. Next you are stating how much you have paid in taxes, up till the end of the year. Finally, your tax return form declares what is the amount you must pay.

So in going through this tax return process many people show that they have overpaid their income tax and therefore have a refund coming. The alternative is of course, that there was not enough money withheld, or that the quarterly payments were not enough and now you owe the government the difference.

To summarize, we offer you to care about everything instead of you and send your document to the IRS and to your state tax department.You don't have to carre about nothing.

Most income tax refunds have been paid

2009-10-26T03:54:00.000-07:00

There has been a slowdown in paying individual income tax refunds because of the state’s precarious finances.

While revenue officials are not allowed to discuss individual tax cases, most refunds from uncomplicated individual state income tax returns for 2008 have been paid, or soon will be, Revenue Commissioner Tim Russell said last week.

Because of the recession, Alabama’s income tax collections this year have been anemic. In fact, they’re less than the previous year, requiring careful management of taxes that fund education first and then refunds.
Hundreds of thousands of refunds were slowly released because of cash flow problems this year. Because returns would be so slow in being released, the revenue department advised it would pay 4 percent interest on any refund not made by July 15.
Refunds from uncomplicated federal returns for 2008 were electronically deposited within a week or 10 days of returns being e-filed, but state refunds from uncomplicated returns that were filed early often took more than six weeks to receive.

Revenue spokeswoman Carla Snellgrove said the department has issued 1.3 million individual refunds totaling $659.3 million so far this calendar year.

Earlier this month, about 10,000 refunds were released to the comptroller for payment, she said. The refunds were through Sept. 30 and should be paid by the end of October. Refunds are released when funds become available out of income tax collections.

The revenue department batches refunds for payments. During two days in early October, 15,411 refunds worth $20.3 million were issued, and on one day, Oct. 15, another 16,365 refunds were issued totaling $16.8 million.

Snellgrove said any complicated tax return or a return with a filing extension would not be completed quickly but those were few in number.

“Most individuals will have been paid,” Snellgrove said.

10 Ways to Lower Your Taxes

2009-10-23T01:48:00.000-07:00

1. Boost your 401(k) contributions.
2. Make the most of your flexible spending account.
3. Buy a house.
4. Buy a car.
5. Sell losing investments.
6. Maximize your tax credits and deductions.
7. Pay college bills.
8. Give to a charity.
9. Max out tax breaks for the self-employed.
10. Keep track of medical expenses.
1. I've been maxing out my 401k for years, so I get the full tax advantages here.
2. Does a HSA count? If so, I put in the maximum allowed each year.
3. I already have a house and it's been paid off for over a decade -- so I don't get the new homeowner credit or the mortgage interest deduction. And I'm ok with that.
4. I thought about buying a car this year and saving the state taxes, but I think my car will last another (hard) winter and it's probably a better deal to keep it longer. So I'll look for a new car in 2010.
5. I have enough investment losses to carry over for years. Ugh.
6. We're looking at buying a new heater/AC and the $1,500 tax credit is one reason why. That and the fact that the repairman said, "Your heater is making a funny noise. My suggestion is to never turn it on again."
7. Our 529 contributions save us on state taxes (a few hundred dollars a year) because we invest with an in-state 529 plan.
8. Our biggest deduction for the past several years.
9. If you have a business (or a side business), you can save a bundle on taxes by having the business cover many costs (such as a deduction for home office use, magazine subscription, books, computer equipment and support, etc.) I could make much better use of this option, but I seem to maximize revenue and minimize expenses (which is not a bad thing.)
10. I'd prefer to have no medical expenses at all than to have massive ones that save me on taxes (which is probably the same way everyone feels about this issue.) But if you do have big medical bills, it's at least some consolation that they can save you some on your taxes.

South Carolina lawmakers aiming to extend jobless benefits

2009-10-20T02:47:00.000-07:00

South Carolina lawmakers said Monday they will return to the Capitol next week to ensure thousands of state residents receive extended unemployment benefits.
House Speaker Bobby Harrell and Senate President Pro Tem Glenn McConnell, both Charleston Republicans, agreed to the extraordinary move and criticized the state Employment Security Commission for failing to get the Legislature involved in heading off a problem that this week made 6,700 of the state’s unemployed ineligible for extended benefits.
“The General Assembly will take quick action to fix this oversight by the ESC to ensure that unemployed South Carolinians will not suffer further by being denied this federal benefit,” Harrell and McConnell said in a joint statement.
“It is unfortunate that the Legislature must return to fix this problem, this oversight was completely avoidable” and shows the need to overhaul how the commission operates.
Even before the new wave of workers lost benefits, the state had more than 113,000 people who had exhausted all state and federal regular and extended benefits in the midst of an 11.5 percent unemployment rate, which is the nation’s sixth highest.
The federal government made stimulus money available for 20 weeks of extended benefits.
To get the final seven weeks, states had to tie emergency jobless relief to the unemployment rate. But South Carolina’s emergency payments are instead tied to people receiving jobless checks. Because legislators didn’t temporarily change that law, the extra benefits weren’t available. South Carolina was the only state that needed to make the change that didn’t, according to the National Employment Law Project in New York.
And a quick, one-day return means legislators won’t be in town when the State Ethics Commission releases a report that would fuel more impeachment discussion.

2009-10-20T02:17:00.000-07:00

How would you feel about getting a check for only 8 cents in the mail? That is just one reason why Georgia's lieutenant governor is slamming the state's department of revenue -- criticizing the way the department handled this year's tax refunds.
Mike Aiken said he isn't quite sure what to do with the check he just got from the state of Georgia -- a check that would boost his bank account by 8 cents.
He had to wait more than three months for his Georgia tax refund. The state owed him interest -- 8 cents. It cost the state 33 cents to mail it.
"They should have put a minimum somewhere," Aiken said. "Anything less than a dollar forget it. I don't know how the rest of the public may feel about it -- maybe they want their eight cents."
Facing a budget shortfall, the Department of Revenue had to reduce the staff that processes tax refunds -- the cuts to that staff saved the department $2.4 million. Because the checks slowed getting out refund checks, the state wound up paying approximately $2 million in interest to those who had to wait.
Add to that, about $100,000 in extra postage to send those interest checks.
Lt. Gov. Casey Cagle calls the situation unacceptable.
"The Department of Revenue was cut less than some other state agencies," Cagle said. "And more important, the core mission of the Department of Revenue is to collect taxes and process those -- and when you're not doing it in a timely manner, you're violating your core principle."
The revenue department had to cut a total of $12 million from its budget. Cagle says those cuts should have come in places other than the people who process tax refunds. As for that 8 cent check -- by law the state has to pay interest to anyone who gets their refund as late as Mike Aiken got his -- no matter the amount.
Aiken says he may keep the check as a souvenir.
Twice, Revenue Commissioner Bart Graham has declined requetsts from 11Alive News for an interview. Late Monday afternoon, his department e-mailed answers to several questions. The department says it made cuts to avoid closing offices or discontinuing any services - and says it was not a foregone conclusion that cuts would have caused refund checks to go out late.
As for the lieutenant governor''s statements - the revenue department had no comment.

Worst of recession over, Conference Board says

2009-10-19T03:40:00.000-07:00

The Canadian economy will grow 2.9 per cent next year, bolstered by government stimulus programs, the Conference Board of Canada said yesterday. "The darkest days now seem to be in the past," the Conference Board said in a report. "Over all, real GDP [gross domestic product] is now forecast to contract by 2.1 per cent in 2009, down 0.4 percentage points from what we forecast in our summer Canadian outlook. As private sector activity stabilizes and strengthens next year, planned capital spending by all levels of government will help boost real GDP growth to 2.9 per cent in 2010," the Conference Board said, adding that "stronger, post-recession-type growth of 3.6 per cent is in the cards for 2011." Private sector spending is expected to plunge by 13.7 per cent in 2009 and is forecast to grow by less than 1 per cent in 2010. "For now, government policy remains the economic stabilizer," the Conference Board said, with Canadian infrastructure spending levels forecast to surpass $50-billion in 2009 and peak at $60-billion in 2010.

State forced to pay $2 million in interest to taxpayers

2009-10-16T01:50:00.000-07:00

More than 278,000 Georgia taxpayers are receiving a little extra dough this week from the state.
The Department of Revenue has mailed out more than $2 million in interest to taxpayers whose refunds were not issued within 90 days of the April 15 filing deadline.
Delays in processing individual income tax returns led to the backlog, which Revenue officials say was caused by $12 million in budget cuts at the agency in the past year. More than 300 Revenue employees were laid off, many of them in the tax return processing unit.
Georgia law requires the state to pay interest on any return not processed within 90 days of April 15, or 90 days from the date the return was filed if after April 15.
The taxpayers receiving interest payments will get an average of $7.42, although 90,000 are receiving $1 or less. Some were $20 or more.
Under state law, the interest accrues at 1 percent per month after the 90-day limit. But the 90-day clock doesn't begin ticking until April 15, no matter when the taxpayer files a return. Any taxpayer who filed a return on time but did not receive refund before July 14 should receive an interest payment.
All taxpayers getting interest payments filed paper returns, and they should have already received their refunds, said Graham, who reports to Gov. Sonny Perdue. The interest is being sent out separately because the agency had to reprogram its computer systems to calculate interest owed. It's the first time since at least 2003 that the state has had to pay interest for late refunds.
But on six occasions during the past legislative session Graham warned lawmakers that budget cuts would result in processing backlogs. Graham said that proposed cuts would lead to an average three-month delay.
Lawmakers cut Revenue's budget by $12 million, or 9 percent. Of that, $2.4 million came from the processing center. Graham cut two of the three shifts of part-time processors hired during tax season.
Cagle also said in the interview that the state gave the Department of Revenue an additional $26 million "to create efficiencies of scale to process these much faster."
But that $26 million did not go to the processing unit. Much of it was bond money to create a new data warehouse that eventually will make it easier and more efficient for Revenue agents to investigate fraud. Some was for an ongoing project aimed at making it easier for sales tax and employers' withholding taxes to be filed and paid electronically.Perdue defended the agency. Bert Brantley, the governor's communications director, said the Revenue Department has recovered more than $500 million in recent years through improved operations and new ways to collect back taxes.
"Our goal is always to meet those higher expectations," Brantley said. "We regret it any time we don't reach that goal, even when it is due to budget cuts."

New Zealand hit with record number of tax refund scams.

2009-10-16T01:07:00.000-07:00

The New Zealand Government released new figures highlighting the constant problem of phishing techniques tailored to collect information about individuals for financial gain.

A record 83,000 scam emails offering fake tax refunds were reported to HM Revenue & Customs (HMRC) in September. The online attacks, known as ‘phishing’, have continued this month, with an unprecedented 10,000 reports of the fraud made to HMRC on one day alone.

The press release goes on to show how the scam continues unabated:

The scam email tells the recipient they are due a tax refund and then asks for bank account or credit card details. Anyone who gives these details to the fraudsters risks their bank accounts being emptied and credit cards maxed to their limit. The victim also risks having their personal details sold on to other criminal gangs. The latest version of this scam originates from various different websites, which operate for 20 minutes before changing their domain name.

It’s pretty wild that a con artist would use the tax department to get your money. I had to grin and believe that, the citizens rarely get refunds, because they are reporting the scam to the government. I don’t think even Al Capone would try to use the government’s tax department as a source of information to start a fraud! How times have changed!

Taxes paying through the nose

2009-10-15T04:05:00.000-07:00

The problem with taxes isn't just that we have to pay them, but taxes in general create thousands of pages of laws, amendments and decrees that determine how much we have to pay.

We also like to tax our sins, so to speak. The state of California has decreed that the sin of smoking should cost the sinner 87 cents a pack. That's on top of a federal tax of $1.01. Legislators would like, mightily, to raise that another buck-fifty a pack in hopes of saving sinners from themselves and raising more money. They also cite savings in health care, not to mention longer lives.

We think that the evidence that smoking is harmful to health is very strong, and if Congress members were serious about it, they would just ban smoking altogether. That won't happen soon. Not to mention that the black market in cigarettes would flourish, and the feds and states wouldn't get a dime in taxes. Talk about conflicting goals.

Government likes to tax just about every sin under the sun. For the sin of reading this newspaper, you will be assessed a sales tax. If you drink sugary soft drinks, you pay sales tax, and now some folks at Princeton and Harvard are proposing a one-cent-per-ounce tax on that sin.

The soda tax advocates claim that a 10 percent increase in the cost of sugary drinks would result in a 10 percent decline in usage and a health care savings in the billions.

Why not just cut the subsidy to farmers for producing the corn fructose syrup used to sweeten drinks, instead of giving them tax money to grow the stuff and then taxing its consumption?

Then there are the discrepancies in what is taxed. Ice and soda are subject to California sales tax, but chips aren't. Our favorite, however, is this one, from the Board of Equalization: If you hop down to your favorite convenience story and buy a cold cheese dog, and take it with you, it's considered a grocery item, and you pay no sales tax. However, if you buy one from the rotisserie, it's considered takeout, and you pay sales tax. So what happens if you buy a cold burrito and heat it in the store's microwave? Depends on where the microwave is located. In some cases, the state gets a bite of the burrito; in others, it doesn't.

It's just one more reason why you have to love a full-time Legislature, which has never met a tax it didn't like, even when the laws that govern taxes don't make a lick of sense.

Student Tax Refund in the UK

2009-10-14T06:27:00.000-07:00

Working casual jobs as a student gets you that much needed cash; but it also gets you paying taxes. The UK tax system is pretty straightforward, but can be complicated if you work part-time and for more than one employer.

Most students are taxed on the PAYE (Pay as you earn) scheme, which is designed to deduct the taxes you owe with each pay. This way you won’t end up owing a huge amount of tax at the end of the tax year. But the PAYE system does not take into account periods of unemployment. Income tax is calculated at a rate that’s only right if you work the full tax year on the same pay rate.

If you only work casually to supplement your studies, your annual income may drop to a lower tax bracket and you can end up having paid more taxes than you actually had to. You are then entitled to receive a tax rebate for the amount that was overcharged.

US tax return deadline.

2009-10-14T05:56:00.000-07:00

The April 15 deadline for US tax returns is coming faster than you may think, so if you’ve worked in the USA it’s about time you started to organize your tax return.

First off, your employer will mail you your W2 form, which has all of your earnings and deductions for 2008. By law, employers are obliged to send W2 summaries by the end of January. If you live outside the USA, make sure you update your US employers with your current address.

If you have any trouble getting your W2, you can still file your tax return using your final payslip.