...Working Income Tax Benefit Paper for TAXX 344 Executive Summary Since 2008 most Canadians have heard about the Working Income Tax Benefit. It was introduced in 2007 by the Canadian Government as an incentive for those living on social assistance to enter the job market and those in the job market to continue working. The underlying principle is to give a reduction in income taxes to those who earn income from employment or self business to help offset the costs of entering the job market as opposed to living on social assistance. Offsetting costs such as medical and dental costs, work supplies etc. The cost of leaving social assistance and working is referred to as the welfare wall. The working income tax benefit was introduced at a low rate of $500 for individuals and $1,000 for families which considering the maximum net income cut-off amounts did not include the target audience of those who are on social assistance. Thanks to Canada's Economic Action Plan to help stimulate the economy during the Late 2000's Recession the Government provided what they called and enhancement and increased the benefit to $925 for individuals and $1,680 for families and increased the maximum net income levels to include more Canadians. The working income tax benefit is discussed in section 122.7 of the Canadian Tax Act and tax payers use Schedule 6 of the T1 tax return to calculate the benefit based on their earned income and calculates on a sliding phase in rate of 25% and phase...
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...Student (& Spouse if married) Parent(s) (if dependent) Payments to tax-deferred pension and savings plans as reported on the W2 _____________ Form in Boxes 12a through 12d, codes D,E,F,G,H or S. ____________ Child support received for any children. This includes money you received from a non-custodial parent that is not part of a legal child support agreement. Do not include foster care payments, adoption payments, or any amount that was court_____________ ordered but not actually paid. ____________ Housing, food, and other living allowances paid to members of the military, clergy and others. Include cash payments and/or cash value of benefits received. Do _____________ not include value of on-base military housing or basic military allowance for housing. ____________ Veteran’s non-education benefits, List total amount of veterans non-education benefits. Include Disability, Death Pension, Dependency and Indemnity Compensation _____________ (DIC), and/or VA Work-Study allowances. Any other untaxed income and benefits: List the amount of other untaxed income. Include: workers’ compensation, disability, Black Lung Benefits, amounts from IRS Form 1040 Line 25, Railroad Retirement Benefits, etc. Do not include student aid, Earned Income Credit, Additional Child Tax Credit, Temporary Assistance to Needy Families (TANF), untaxed Social Security benefits, Supplemental Security Income (SSI), Workforce...
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...University of Phoenix Material End of the 20th Century Matrix Choose ten items from the following list and identify their significance during the 1990s and beyond: |Earned Income Tax Credit |Economic prosperity under Clinton | |E-mail |Creating a budget surplus | |NAFTA |The Internet and the World Wide Web | |Telecommunications |The Brady Bill | |Somalia and Rwanda |Apple | |Internet marketing |Digital divide | |Kosovo |Don’t Ask, Don’t Tell | |Cell phones |Microsoft | |Event |Significance | |E-mail |E-mail has made it a lot easier for people to send letters...
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...have health insurance or face a fine as constitutional, qualifying the provision as a tax. (Rapoza) While the commission covered by the Affordable Care Act is an imperfect system that does not mean it is not a good one. All of the minor details of the tax penalties the government will implement against those who do not have health insurance are not easy to decipher. The hospitals and health care providers feel very positive about this law because they are guaranteed patients who guarantees payment from the federal government, which should also mean premiums will go down as a result. I have no idea how people can claim that health insurers will suffer. In Massachusetts, they live under the predecessor of ObamaCare — the Massachusetts Healthcare Reform Act, signed into law by former governor Mitt Romney in 2006. (Rapoza) Under RomneyCare, 98 percent of Massachusetts’ residents have affordable health insurance. (Rapoza) Meanwhile, Massachusetts has not gone broke. Its unemployment level is currently 6 percent, better than the national average of 8.3 percent. (Rapoza) Companies are not going belly up because of RomneyCare. Private insurers operate in the state alongside the non-profit health insurers like Harvard Pilgrim and Blue Cross Blue Shield. (Rapoza) There have not been massive layoffs in the industry because of the law. According to the Annenberg Public Policy Center, the minimum tax assessment will be $695 per person and no more than $2,085 per family when the law goes...
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...long-term goal that I have always wanted to accomplish is to finish college, with “A”s and no student loans. The two things that I did to accomplish this is saving money and studying. 3. Describe two of your long-term financial goals, and explain why these goals are important to you. List at least three steps that might help you accomplish this goal. (4-6 sentences. 2.0 points) Two long-term of my financial goals is to save up money to retire and pay for my children to go to college without the fear of them going into student loans. Three steps that may help me accomplish this goal are: 1.) Get in the habit of saving money. 2.) Owe real estate housing. This way if any laying off in jobs occur, I still have a backup plan for insuring income. 3.) Buy reliable cars, electronics, etc. this way, I don’t have to spend...
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...poverty and empowers people to become powerful voices for the end of poverty through grassroots advocacy. U.S Poverty Campaign: Results works to make a substantial difference in breaking the cycle of poverty in the United States while at the same time ensuring that our small but very engaged grassroots network makes a strategic impact; a couple of their main focuses are creating economic mobility: building ladders out of poverty, keeping food on the table: protecting federal nutrition programs, and empowering grassroots activists: grassroots health and expansion. For example, their goal for creating economic mobility: building ladders out of poverty is enacting policies that ensure that all Americans have the financial means to earn enough income to make ends meet, stay on their feet while working to become financially independent, and build the savings and assets to weather financial emergencies and save for the...
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...The Welfare Reform Act caused many existing Medicaid beneficiaries to lose necessary coverage. The delinking of Medicaid to AFDC (Aid to Families with Dependent Children) has resulted in the changes in the eligibility requirements to obtain Medicaid benefits. The old format would enable an eligible welfare applicant automatically eligible for Medicaid. Today this is not the case. TANF (Temporary Assistance for Needy Families) a new block grant has higher eligibility requirements, therefore resulting in a decrease in people who are now on Medicaid. TANF has put emphasis on diversion and job emphasis which has also steered people away from Medicaid. The economy has made job finding easier. Incomes were raised which led to some applicants and beneficiaries no longer meeting income tests or eligibility requirements for Medicaid. When these changes were made, the number of people on Medicaid decreased greatly resulting in numerous people being ineligible for Medicare or the present recipients losing Medicaid that was necessary to cover their medical expenses due to their medical issues. The changes caught many by surprise Although the Welfare Reform Law does not alter how Medicaid offers health care or it’s entitlement status, it does minimize the number of people covered, thus lowering federal expenditures. Eligible Medicaid candidates sometimes remain un-enrolled even though they are needy as a result of the Welfare Reform Act. When this law was enforced...
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...approved the tax credit legislation in 1975 in part to offset the burden of social security taxes and to provide an incentive to work. The earned income tax credit was also responsible for significant declines in poverty and economic gains during the 1990’s. The earned income tax credit is a refundable tax credit that has been designed for those individuals who are at an economic disadvantage within the workforce. This credit provides tax equity to the working poor which allows the taxpayer to be reimbursed for certain federal taxes such as gasoline and social security taxes. For example, this credit would be able to compensate for the costs of transportation. To qualify for the earned income credit, one must Have a valid social security number Have earned income from employment or from self-employment Not have a filing status of married, filing separately Be a U.S. citizen or resident alien all year or a nonresident alien married to a U.S. citizen or resident alien and filing a joint return Not be a qualifying child of another person Cannot file form 2555 or 2555-EZ related to foreign earn income Meet these income thresholds: $38,646 ($41,646 married filing jointly) with two or more qualifying children; $33,995 ($36,995 married filing jointly) with one qualifying child; $12,880 ($15,880 married filing jointly) with no qualifying children. John and Sandy’s total earned income filing jointly totals $33,000 ($25,000 (Sandy’s income) + $8,000...
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...eXpress customer service line, be as specific with your issue as possible. Providing specific, detailed information is critical for a timely resolution. Please note, your electronic W-2’s are viewed in Adobe and only one page appears at a time. It is IMPORTANT to know you will have multiple pages within your electronic W-2 file. Please read the notice to employee and instructions printed as a supplemental page with your electronic Form W-2. This information has been furnished by the IRS and includes information regarding Earned Income Credit (EIC), corrections and more. IMPORTANT INFORMATION ABOUT EARNED INCOME TAX CREDIT Based on your annual earning, you may be eligible to receive the Earned Income Tax Credit from the federal government. The earned income tax credit is a refundable federal income tax credit for low-income working individuals and families. The earned income tax credit has no effect on certain welfare benefits. In most cases, earned income tax credit payments will not be used to determine eligibility for Medicaid,...
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...Federal Tax Law Effect on Individual Taxpayers Regarding Earned Income Tax Credit Federal Tax Law Effect on Individual Taxpayers Regarding Earned Income Tax Credit Jaree Chambers DeVry University / Keller Graduate School of Management Abstract Federal tax law effects each taxpayer differently and can prove difficult to interpret. The differences very due to income, family size or family situations i.e. single, married, divorced, childless, etc., and allowable credits or deductions. During our review of the Federal tax laws in this paper, we will briefly document how the United States taxation system developed and the effects of the earned income tax credit on taxpayers. While the earned income tax credit and the child tax credit came to be around the same time, we will focus on the earned income tax credit as it is our largest federal entitlement program. Federal Tax Law Effect on Individual Taxpayers Regarding Earned Income Tax Credit Taxation dates back to the United States Constitution empowering Congress to “lay and collect taxes, duties, imports and excises to pay the debts and provide for the common defense and general welfare of the United States.” Limitations were established limiting taxation as follows: “all duties, imports, and excises shall be uniform throughout the United States, that direct taxes should be laid in proportion to the population.” This language is key as many early tax laws were found to be unconstitutional due to these two simple terms:...
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...Chapter 8 Individual Income Tax Computation and Tax Credits SOLUTIONS MANUAL Discussion Questions 1. [LO 1] What is a tax bracket? What is the relationship between filing status and the width of the tax brackets in the tax rate schedule? A tax bracket is a range of taxable income that is taxed at a specified tax rate. Because only the income in the particular range is taxed at the specified rate, tax brackets are often referred to as marginal tax brackets or marginal tax rates. The level and width of the brackets depend on the taxpayer’s filing status. The tax rate schedules include seven tax rate brackets. The rates for these brackets are 10%, 15%, 25%, 28%, 33%, 35%, and 39.6%. In general, the tax brackets are widest for Married filing jointly (for example, more income is taxed at 10%), followed by Head of household, Single, and then Married filing separately (the brackets for Married filing separately are exactly one-half the width of the brackets for Married filing jointly, and the width of the 10% and 15% brackets for Single and Married filing separately are the same). 2. [LO 1] In 2014, for a taxpayer with $50,000 of taxable income, without doing any actual computations, which filing status do you expect to provide the lowest tax liability? Which filing status provides the highest tax liability? For a taxpayer with $50,000, the married filing jointly filing status should provide the lowest tax liability in 2014 because the MFJ tax rate schedule taxes...
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...best interest for the organization d. Does an attorney need to sign the organization documents for a Corporation? No, but it may be in the best interest for the organization e. What are the filing fees associated with filing an LLC and a Corporation? $110 for both and the CL-1 is $25 f. Are there annual fees to be paid to the state for an LLC or Corporation? Both LLC and Corporation have to pay $10 fees g. Does a Corporation doing business in SC but formed in another state have to register with the State of South Carolina? Yes, they are required to register every location that their business resides in h. Does a General Partnership have to file anything with the Secretary of State? No. 2. BUSINESS LICENSES AND TAX REGISTRATION For this portion- I chose to run an S CORP for my liquor store which sells tobacco, wine, and liquor. My three employees are my cashier, stocker, and manager. a. In Charleston, all businesses are required to have an annual business license for each location. There is a five step process for obtaining this business license. First- Zoning Compliance. The city encourages every business to confirm the zone and physical layout of the building they buy, lease, or commit to. Second- Renovations might require permits so make sure you have an understanding in which projects will require permits. The City’s Building Inspections Department will confirm if one is needed. Third- Business License Certificate of Occupancy Application...
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... PERSONAL INCOME TAX IN THE UNITED STATE Group’s member:Nguyễn Như Nam (C)Phan Thu AnNguyễn Thùy DungHoàng Bá SơnNgô Thị Ánh TuyếtDate: 15/12/2014 | Table of Contents PART 1. The review on the tax system in the United States 2 1. The tax administration system in United States 2 2. The tax policy system in United States 3 PART 2. The review of the main content of the tax laws 5 I. The scope of application 5 1. Taxable incomes 5 2. Non-taxable 7 3. Payers. 7 II. The taxation bases 9 III. The tax calculation method 10 1. Gross Income 10 2. Adjusted gross income 17 3. Tax Credits 17 4. Tax Rates 20 5. Deductions and exemptions 22 IV. Tax declaration, submission and refund 32 1. Declaration 32 2. Submission 33 3. Refund 34 REFERENCES 36 PART 1. The review on the tax system in the United States Taxation is an important for each country. Taxation provides a material to distribute economic resources towards those with low incomes or special needs. Taxes provide the revenue needed for critical public services such as social security, health care, national defense, and education. 1. The tax administration system in United States The U.S. system of tax administration is based on the principle of self-assessment. In a self-assessment system, taxpayers calculate and pay their own taxes without the intervention of a tax official. If this is not done appropriately and within the prescribed timeframes, the tax administration...
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...a test that is founded on basic preparer competency. As such, the Registered Tax Return Preparer (RTRP) test will focus on the ethical responsibilities of federal tax return preparers and the completion of Form 1040 series along with the basic related schedules and forms. The test specifications provided below are intended to provide guidance on the content of the RTRP test. The examples provided within each item are not all inclusive of what may be tested in a given area. Tax preparers are required to pass this competency test in order to achieve the title of Registered Tax Return Preparer. Domain 1: Preliminary Work and Collection of Taxpayer Data 1. Review prior year’s return for accuracy, comparison, and carryovers for current year return. 2. Collect taxpayer’s biographical information (e.g., date of birth, age, marital status, citizenship, dependents) 3. Determine filing status 4. Determine all sources of taxable and non-taxable income (e.g., wages, interest, business, sale of property, dividends, rental income, income from flow-through entities, alimony, government payments, and pension distributions). 5. Determine applicable adjustments to gross income (e.g., self-employed health insurance, self employment tax, student loan interest deduction, alimony paid, tuition, and fees deduction). 6. Determine standard deduction and Schedule A itemized deductions (i.e., state and local tax, real estate tax, cash contributions, non-cash contributions, unreimbursed employee expense,...
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...advantageous tax filing status for Spouse A and Spouse B on their federal tax return. The filing statuses available to the taxpayer couple are married filing jointly, and married filing separately. The best filing status for Spouse A and B is married; filing jointly. Both spouse A and B have separate income for the year and so could file separate returns but they would also have to file at a higher tax rate schedule because their income is not combined. They would be required to claim any exemptions, deductions, and credits available separately. The couple is also precluded from filing a dependent twice so if A were to file for one of their 3 dependents then B could not claim the same dependent. The couple will qualify for 5 exemptions if filing together: 1 for spouse A, 1 for spouse B, 2 for the minor children, and 1 for the student adult child. Spouse B’s mother (whom lives with the couple) receives social security benefits in the amount of $750 per month she contributes all but $90 a month to the household. Since this amounts to $7920 and the couple contributed $7000 to the mother, they provided less than half of her support and so cannot claim her as an exemption. (Hoffman, et al, 2011). When addressing taxable and non-taxable income, it is mandatory that all income be reported on the return but only the portions subject to tax will be tax assessed. Spouse A has a K-1 from the partnership which shows $142,000 of self-employment business income, which is earned income and is...
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