They say death and taxes are the only two certain things in life. Alas, this wasn’t always the case. Well, at least for the income tax.
Our great nation came into existence in fits and starts. Following the revolt against the British, a federal government was elected and the fun began. This “fun” inevitably led to the situation where not everyone could agree on what the United States should stand for, much less what laws should be enacted. As a result, there was no federal income tax for nearly 100 years. Ah, the good ole days!
fit = kb. 1 serangan tiba-tiba. 2 pas. -ks. 1 pantas, patut, layak. 2 sehat. 3 dapat, siap. 4 baik. -kk. to see f. memutuskan. -kkt. (fit atau fitted) 1 cocok dengan. 2 mencocokkan / menyusun kembali. 3 menjadikan. fitings kb., j. benda-benda, perabot.
revolt = kb. pemberontakan. -kki. 1 memberontak (against terhadap). 2 berrevolusi. 3 bangkit (against menentang). -revolting ks. memuakkan, menjijikkan.
inevitable = ks. tak dapat dielakkan/dihindarkan. -inevitably kk. yang tak terelakkan, pasti jadi.
led = lead = kb. timah. l. pencil potlot. lead-colored ks. lebam(-hitam), kelam(-lebam). Inf.: lead-pipe cinch a) kepastian, hal yang sudah pasti. b) gampang mudah.
enact = kkt. 1 membuat, menjadikan. to e. a law menjadikan undang-undang, mengundangkan. 2 memainkan, memerankan. to e. a role (in a play, film) memainkan peranan.
If there was no income tax during this period, you are probably wondering how the government functioned. It did so by collecting use and sales taxes. Taxes were charged on liquor, tobacco and imports to mention just a few. Many people in our modern society would like to return to just such a system.
liquor = kb. minuman keras. 2 cairan (of pickles).
mention = kb. sebutan. honorable m. sebutan terhormat. -kkt. 1 menyebutkan. 2 mengatakan. not to m. belum lagi.
Contrary to popular notions, the first income tax was not put into law in the early 1900’s. In fact, the first President to institute an income tax was Abraham Lincoln. In 1861, President Lincoln and Congress passed an income tax law to assist with funding the Civil War with the south. When the war came to an end, the tax was phased out. Imagine a tax being phased out now? That should bring a tear of laughter to your eye.
contrary = kb. kebalikan. -ks. 1 suka membantah/berlawanan/menentang. 2 bertentangan. 3 berlawanan.
notion = kb. 1 dugaan. 2 ide, gagasan. 3 pikiran. 4 pikiran, maksud. -nations j. barang kelontong.
institute = kb. institut, lembaga. -kkt. mengadakan (law, investigation). a newly instituted post sebuah jabatan yang baru diadakan.
phase = kb. 1 tahap. new p. tahap baru. 2 bentuk (of the moon). 3 Elec.: keadaan perubahan aliran. -kkt. membuat bertahap-tahap. to p. out menghapuskan setahap demi setahap.
tear = kb. air mata. -kki. berlinang. tear-stained ks. dibasahi.
The income tax as we know it was first instituted in 1913. Congress passed a law establishing a graduated tax rate of one to seven percent on all income taxes. I can say honestly and truthfully that I would kill to pay one percent in taxes these days. Heck, I am willing to take on the burden of paying seven percent!
heck =kb. to give s.o. h. mengomeli seseorang. -kseru persetan, buset.
burden = kb. 1 beban. 2 pokok. -kkt. menyusahkan.
In establishing the income tax system, the Constitution was amended to add a 16th Amendment. This Amendment gave the federal government the right to collect taxes. The politicians primarily responsible for this were President Roosevelt and President Taft. I mention two Presidents because the bitter debate over the subject took some time to work out.
bitter = ks. 1 pahit. 2 tidak enak. 3 sengit. 4 dingin. -bitters j. sesuatu yang memberikan rasa pada minuman keras, minuman pahit. -bitterly kk. 1 dengan sengit. 2 sekali.
If you’re looking to blame a particular political party, Presidents Roosevelt and Taft were both Republicans. Of course, the Democrats haven’t exactly made much of an effort to repeal the tax, so both parties deserve a whack upside the head in my opinion. Nonetheless, this is how we came to be burdened by the income tax in the United States.
blame = kb. kesalahan. -kkt. menyalahkan. -blamed ks. Inf.: jahanam, terkutuk.
repeal = kb. pencabutan (of a law). -kkt. mencabut (a law).
deserve = kkt. 1 berhak mendapat. 2 pantas, patut menerima.-deserved ks. well-d. honor penghargaan yang selayaknya (diperoleh).-deservedly kk. sdh sepatutnya.-deserving ks.1 yg pantas di tolong.2 yg berjasa.
WHACK = kb. pukulan keras. Sl.: to have/ take a w. at mencoba. -kkt. memukul. -whacking Inf.: ks. amat besar.
UPSIDE = kk. u. down terbalik. to turn a room u. down membolak-balik seluruh isi kamar. to turn a pillow u. down membalikkan bantal.
http://www.businesstaxrecovery.com/history_income_tax
Selasa, 15 September 2009
Kamis, 10 September 2009
New Tax Breaks for Medical Expenses
By Amy Goldstein
Washington Post Staff Writer
Wednesday, January 25, 2006
President Bush will propose that Americans be allowed to take tax deductions on more of their out-of pocket medical expenses, as part of an initiative the White House believes will rein in soaring health costs by shifting responsibility toward individuals, according to congressional and other sources familiar with the administration's thinking.
rein = kb. tali kekang, kendali. -kkt. to r. in mengekang (a horse).
soar = kki. 1 membumbung tinggi. 2 memuncak. 3 melonjak, membubung. -soaring kb. Av.: peluncuran. s. mountain gunung yang menjulang tinggi. s. prices harga-harga yang membubung tinggi.
The new tax breaks for personal health spending, to be included in the 2007 budget Bush will release in less than two weeks, are designed to help the uninsured and to allow people with insurance to write off a greater portion of the money they spend on co-payments, deductibles and care that is not covered. Under current tax rules, people can deduct medical expenses only if they exceed 7.5 percent of their adjusted gross income.
The president also plans to call for an expansion of health savings accounts, an idea long favored by conservatives and approved by Congress slightly more than two years ago, in which people who buy bare-bones insurance policies are allowed to put money into tax-free accounts for their medical expenses.
favor = kb. 1 kemurahan/kebaikan hati. 2 hadiah, tanda-mata. 3 surat. 4 tolong. -kkt. 1 menyokong. 2 berlaku berhati-hati. 3 menyerupai. 4 memperlakukan lebih baik daripada yang lain-lain. 5 menyukai/lebih suka 6 berbaik/bermurah hati. -favored ks. kesayangan.
slight = kb. 1 (neglect) pelalaian. 2 (snub) sikap yang meremehkan. -ks. 1 langsing, ramping, lampai (person). 2 sedikit. 3 enteng, kecil (wound). 4 tipis (of chances). -slighting ks. yang menghina (remarks). -slightingly kk. enteng/rendah.
bare = ks. gundul. 2 kosong. 3 nyata, terang. 4 yang paling sederhana. 5 tak bersepatu. 6 telanjang. -kkt. 1 membuka. 2 memperlihatkan.
bone = kb. 1 tulang. 2 duri, -kkt. menulangi (a fish, chiken). -kki. Sl.: mempelajari bone-dry ks. kering sekali. b. meal tepung tulang.
In addition, Bush intends to propose changes to allow people to keep their insurance, without extra cost, if they change jobs or decide to start a business, building on a decade-old law that was designed to make health coverage more "portable."
intend = kkt. 1 bermaksud untuk. 2 memaksudkan, memperuntukkan. -intended kb. bakal suami atau istri. ks. 1 bakal. 2 yang diharapkan.
The three proposals -- and possibly others -- are part of a renewed effort by the White House to tackle medical costs, a theme that administration officials said yesterday Bush intends to emphasize in his State of the Union address next week. The health initiative also represents one of the few areas in which the president will try to create new domestic policies through what he and aides have said will be an austere budget.
tackle = kb. 1 katrol, takal. 2 alat. -kkt. 1 memegang, menangkap (s.o.). 2 mengerjakan, melakukan. 3 Sport : menggasak, mentackle.
address = kb., 1 alamat. 2 amanat, pidato 3 berbicara, menegur. 4 memanggil, menyapa, menyebut.
through = ks. 1 selesai, siap. 2 terus(an). -kk. 1 dari permulaan sampai habis. 2 terus. 3 menyambung. -kd. 1 melalui. 2 melewati, lewat. 3 karena. 4 terus. 5 diluar.
aide = kb. ajudan, pembantu.
austere = ks. keras, tegang, cermat. My favorite professor was an a. man Profesor kesayangan saya adalah seorang yang keras.
Part of the initiative recycles proposals that the White House could not push through Congress, including tighter limits on medical malpractice lawsuits and changes that would allow small businesses to band together to buy insurance in ways that bypass state insurance rules.
But the new components would propel the nation's health care system in a direction that many Republicans and business groups embrace: lightening the burden of insurance cost on employers to some degree, while creating financial incentives for individual patients to restrict how much care and medicine they use.
tight = kb. tights j. celana (panjang) ketat. -ks. 1 sempit (of clothing, chair). 2 kikir. 3 mabuk. 4 sukar, sulit (of money). 5 ketat (of string, knot, shoe, dress). -kk. rapat. 2 kuat-kuat.
propel = kkt. (propelled) 1 mendorong. to p. a raft down stream mendorong rakit ke hilir. 2 menggerakkan. to p. by steam menggerakkan dengan uap.
embrace = kb. pelukan, rangkulan. -kkt. 1 memeluk (a child). 2 mencakup. -kki. berpelukan. Mother and daughter embraced Ibu dan anak berpelukan.
burden = kb. 1 beban. 2 pokok. -kkt. menyusahkan.
restrict = kkt. 1 membatasi. 2 melarang (s.o. from leaving). -restricted ks. 1 terbatas. r. material bahan yang terbatas. 2 terlarang (of an area).
Even before most people on Capitol Hill learn of the proposals, several senior congressional aides and health policy experts predicted yesterday that Bush may have a difficult time winning support. They said that fiscal conservatives may balk at the expense, and that many Democrats will argue the changes are inadequate for poor people, who are most likely to be uninsured.
White House officials would not confirm the decision to allow tax breaks on consumer health spending, and it remains unclear how large a deduction the president envisions.
balk = kki. 1 menolak keras. He balked when he was asked to do that job Ia menolak keras ketika diminta mengerjakan pekerjaan itu. 2 mogok.The horse balked at crossing the stream Kuda itu mogok waktu menyebrangi sungai itu.
argue = kkt. 1 memperdebatkan, menentang, membantah. 2 mendesak, menganjurkan (dengan kuat).3 membuktikan, memperlihatkan. --kki membantah. to a. against menentang, membantah. to a. for mengusulkan, mendesak.
envision = kkt. memimpikan. to e. o's son a general memimpikan puteranya sebagai jenderal.
In an interview yesterday, however, Allan B. Hubbard, director of the White House's National Economic Council, said the current system is flawed because it gives employers tax deductions for the health insurance they buy for workers, but no similar tax preferences for people who buy coverage because their company does not provide it.
flaw = kb. 1 cacat, kerusakan (in garments, china, etc.) 2 kekurangan.
coverage = kb. ulasan, cara pemberitaan, pencakupan. news c. ulasan pemberitaan/pers. insurence c. jumlah jaminan asuransi.
"That's not fair. It's really almost backwards," Hubbard said. He said that inconsistency concerns Bush, adding: "Normally, when he's got concerns, he tries to find solutions."
Hubbard said Americans are not as careful consumers of health care as they are in shopping for other services, because insurance masks from them much of the cost. He said the price and quality of health care would improve if consumers were given greater financial incentives and had to decide for themselves how much care they really need.
backward = ks. 1 terbelakang. 2 miskin. -kk. 1 kebelakang. 2 terbalik.
concern = kb. 1 perhatian, keprihatinan. 2 firma, perusahaan. 3 soal, urusan. -kkt. menyangkut, mengenai, penting bagi. -concerned ks. kuatir, gelisah, prihatin, risau. -concerning kd. mengenai.
mask = kb. 1 topeng. death m. topeng mati/ mayat. 2 kedok. 3 Sport : masker, penutup atau pelindung muka. -kkt. menembunyikan, menutupi (o's feelings, o's intentions). -masked ks. bertopeng. m. ball pesta topeng, balmaski.
The idea of tax breaks for out-of-pocket medical expenses is borrowed from a recent book by three academics, including two with whom Hubbard has close ties: R. Glenn Hubbard, a former chairman under Bush of the White House Council of Economic Advisers, and John F. Cogan, a White House economic adviser when Ronald Reagan was president. Their book, "Healthy, Wealthy & Wise," calls for all such spending to become tax-deductible. The authors estimate that the revision in tax law would cost $28 billion a year when phased in completely, although they predict much of that lost revenue would be regained through ripple effects the change would create in the health care system.
tie = kb. 1 dasi. 2 pertalian, tali. 3 RR.: balok landasan/rel, ganjal rel. 4 seri. -kkt. (tying) 1 mengikat (o's shoelaces). 2 mengikatkan (s.t. to or around s.t.). 3 bermain seri melawan. 4 menghubungkan, mempertalikan. 5 mengikat (an artery).
phase = kb. 1 tahap. new p. tahap baru. 2 bentuk (of the moon). 3 Elec.: keadaan perubahan aliran. -kkt. membuat bertahap-tahap. to p. out menghapuskan setahap demi setahap.
riple = kb. 1 riak. 2 reaksi, suara. -kki. berdesir.
Several outside health policy experts, both Democrat and Republican, speculated yesterday that the president is unlikely to make such a large financial commitment at a time when the administration has pledged to halve a $400 billion budget deficit during the next several years. Joseph R. Antos, a scholar at the conservative American Enterprise Institute, predicted that Bush will "open this particular door. But how far does it open? We'll see."
PLEDGE = kb. janji, cagar, ikrar. -kkt. menjanjikan (a donation). 2 berjanji.
halve = kkt. membagi dua. I'll h. this candy bar with you Saya akan membagi dua batang gula-gula ini dengan kau.
SCHOLAR = kb. 1 sarjana. Greek s. sarjana bahasa Yunani. 2 pelajar. He's good s. Dia seorang pelajar yang baik.
PARTICULAR = kb. particulars j. fakta-fakta, keterangan-keterangan. -ks. 1 teliti. 2 khusus. -particularly kk. terutama sekali, (ter)istimewa.
An administration official, speaking anonymously because he was not authorized to discuss the budget in advance, said Bush is focused on both the deficit and medical costs. "He feels . . . there may need to be some additional investment to deal with the cost" of health care, the official said. "The overall gain, not only to the federal budget but the family budget, is worth that."
WORTH = kb. harga. -ks. 1 bernilai, cukup baik, bermanfaat. 2 berharga. 3 seimbang.
Allan Hubbard said Bush also thinks the government has not done enough to help people keep insurance when they change jobs. Under a law passed in 1996, an insurer may not penalize people who change jobs -- by charging them more because of preexisting medical problems -- as long as they began a new job within about two months. Hubbard said the protection should be extended to include people who take longer before they begin a new job or who go to work for themselves.
Hubbard also said "it would not surprise me" if Bush proposes to expand health savings accounts, although Hubbard would not describe the changes the White House would like.
Sumber: http://www.washingtonpost.com/wp-dyn/content/article/2006/01/24/AR2006012401838.html
Washington Post Staff Writer
Wednesday, January 25, 2006
President Bush will propose that Americans be allowed to take tax deductions on more of their out-of pocket medical expenses, as part of an initiative the White House believes will rein in soaring health costs by shifting responsibility toward individuals, according to congressional and other sources familiar with the administration's thinking.
rein = kb. tali kekang, kendali. -kkt. to r. in mengekang (a horse).
soar = kki. 1 membumbung tinggi. 2 memuncak. 3 melonjak, membubung. -soaring kb. Av.: peluncuran. s. mountain gunung yang menjulang tinggi. s. prices harga-harga yang membubung tinggi.
The new tax breaks for personal health spending, to be included in the 2007 budget Bush will release in less than two weeks, are designed to help the uninsured and to allow people with insurance to write off a greater portion of the money they spend on co-payments, deductibles and care that is not covered. Under current tax rules, people can deduct medical expenses only if they exceed 7.5 percent of their adjusted gross income.
The president also plans to call for an expansion of health savings accounts, an idea long favored by conservatives and approved by Congress slightly more than two years ago, in which people who buy bare-bones insurance policies are allowed to put money into tax-free accounts for their medical expenses.
favor = kb. 1 kemurahan/kebaikan hati. 2 hadiah, tanda-mata. 3 surat. 4 tolong. -kkt. 1 menyokong. 2 berlaku berhati-hati. 3 menyerupai. 4 memperlakukan lebih baik daripada yang lain-lain. 5 menyukai/lebih suka 6 berbaik/bermurah hati. -favored ks. kesayangan.
slight = kb. 1 (neglect) pelalaian. 2 (snub) sikap yang meremehkan. -ks. 1 langsing, ramping, lampai (person). 2 sedikit. 3 enteng, kecil (wound). 4 tipis (of chances). -slighting ks. yang menghina (remarks). -slightingly kk. enteng/rendah.
bare = ks. gundul. 2 kosong. 3 nyata, terang. 4 yang paling sederhana. 5 tak bersepatu. 6 telanjang. -kkt. 1 membuka. 2 memperlihatkan.
bone = kb. 1 tulang. 2 duri, -kkt. menulangi (a fish, chiken). -kki. Sl.: mempelajari bone-dry ks. kering sekali. b. meal tepung tulang.
In addition, Bush intends to propose changes to allow people to keep their insurance, without extra cost, if they change jobs or decide to start a business, building on a decade-old law that was designed to make health coverage more "portable."
intend = kkt. 1 bermaksud untuk. 2 memaksudkan, memperuntukkan. -intended kb. bakal suami atau istri. ks. 1 bakal. 2 yang diharapkan.
The three proposals -- and possibly others -- are part of a renewed effort by the White House to tackle medical costs, a theme that administration officials said yesterday Bush intends to emphasize in his State of the Union address next week. The health initiative also represents one of the few areas in which the president will try to create new domestic policies through what he and aides have said will be an austere budget.
tackle = kb. 1 katrol, takal. 2 alat. -kkt. 1 memegang, menangkap (s.o.). 2 mengerjakan, melakukan. 3 Sport : menggasak, mentackle.
address = kb., 1 alamat. 2 amanat, pidato 3 berbicara, menegur. 4 memanggil, menyapa, menyebut.
through = ks. 1 selesai, siap. 2 terus(an). -kk. 1 dari permulaan sampai habis. 2 terus. 3 menyambung. -kd. 1 melalui. 2 melewati, lewat. 3 karena. 4 terus. 5 diluar.
aide = kb. ajudan, pembantu.
austere = ks. keras, tegang, cermat. My favorite professor was an a. man Profesor kesayangan saya adalah seorang yang keras.
Part of the initiative recycles proposals that the White House could not push through Congress, including tighter limits on medical malpractice lawsuits and changes that would allow small businesses to band together to buy insurance in ways that bypass state insurance rules.
But the new components would propel the nation's health care system in a direction that many Republicans and business groups embrace: lightening the burden of insurance cost on employers to some degree, while creating financial incentives for individual patients to restrict how much care and medicine they use.
tight = kb. tights j. celana (panjang) ketat. -ks. 1 sempit (of clothing, chair). 2 kikir. 3 mabuk. 4 sukar, sulit (of money). 5 ketat (of string, knot, shoe, dress). -kk. rapat. 2 kuat-kuat.
propel = kkt. (propelled) 1 mendorong. to p. a raft down stream mendorong rakit ke hilir. 2 menggerakkan. to p. by steam menggerakkan dengan uap.
embrace = kb. pelukan, rangkulan. -kkt. 1 memeluk (a child). 2 mencakup. -kki. berpelukan. Mother and daughter embraced Ibu dan anak berpelukan.
burden = kb. 1 beban. 2 pokok. -kkt. menyusahkan.
restrict = kkt. 1 membatasi. 2 melarang (s.o. from leaving). -restricted ks. 1 terbatas. r. material bahan yang terbatas. 2 terlarang (of an area).
Even before most people on Capitol Hill learn of the proposals, several senior congressional aides and health policy experts predicted yesterday that Bush may have a difficult time winning support. They said that fiscal conservatives may balk at the expense, and that many Democrats will argue the changes are inadequate for poor people, who are most likely to be uninsured.
White House officials would not confirm the decision to allow tax breaks on consumer health spending, and it remains unclear how large a deduction the president envisions.
balk = kki. 1 menolak keras. He balked when he was asked to do that job Ia menolak keras ketika diminta mengerjakan pekerjaan itu. 2 mogok.The horse balked at crossing the stream Kuda itu mogok waktu menyebrangi sungai itu.
argue = kkt. 1 memperdebatkan, menentang, membantah. 2 mendesak, menganjurkan (dengan kuat).3 membuktikan, memperlihatkan. --kki membantah. to a. against menentang, membantah. to a. for mengusulkan, mendesak.
envision = kkt. memimpikan. to e. o's son a general memimpikan puteranya sebagai jenderal.
In an interview yesterday, however, Allan B. Hubbard, director of the White House's National Economic Council, said the current system is flawed because it gives employers tax deductions for the health insurance they buy for workers, but no similar tax preferences for people who buy coverage because their company does not provide it.
flaw = kb. 1 cacat, kerusakan (in garments, china, etc.) 2 kekurangan.
coverage = kb. ulasan, cara pemberitaan, pencakupan. news c. ulasan pemberitaan/pers. insurence c. jumlah jaminan asuransi.
"That's not fair. It's really almost backwards," Hubbard said. He said that inconsistency concerns Bush, adding: "Normally, when he's got concerns, he tries to find solutions."
Hubbard said Americans are not as careful consumers of health care as they are in shopping for other services, because insurance masks from them much of the cost. He said the price and quality of health care would improve if consumers were given greater financial incentives and had to decide for themselves how much care they really need.
backward = ks. 1 terbelakang. 2 miskin. -kk. 1 kebelakang. 2 terbalik.
concern = kb. 1 perhatian, keprihatinan. 2 firma, perusahaan. 3 soal, urusan. -kkt. menyangkut, mengenai, penting bagi. -concerned ks. kuatir, gelisah, prihatin, risau. -concerning kd. mengenai.
mask = kb. 1 topeng. death m. topeng mati/ mayat. 2 kedok. 3 Sport : masker, penutup atau pelindung muka. -kkt. menembunyikan, menutupi (o's feelings, o's intentions). -masked ks. bertopeng. m. ball pesta topeng, balmaski.
The idea of tax breaks for out-of-pocket medical expenses is borrowed from a recent book by three academics, including two with whom Hubbard has close ties: R. Glenn Hubbard, a former chairman under Bush of the White House Council of Economic Advisers, and John F. Cogan, a White House economic adviser when Ronald Reagan was president. Their book, "Healthy, Wealthy & Wise," calls for all such spending to become tax-deductible. The authors estimate that the revision in tax law would cost $28 billion a year when phased in completely, although they predict much of that lost revenue would be regained through ripple effects the change would create in the health care system.
tie = kb. 1 dasi. 2 pertalian, tali. 3 RR.: balok landasan/rel, ganjal rel. 4 seri. -kkt. (tying) 1 mengikat (o's shoelaces). 2 mengikatkan (s.t. to or around s.t.). 3 bermain seri melawan. 4 menghubungkan, mempertalikan. 5 mengikat (an artery).
phase = kb. 1 tahap. new p. tahap baru. 2 bentuk (of the moon). 3 Elec.: keadaan perubahan aliran. -kkt. membuat bertahap-tahap. to p. out menghapuskan setahap demi setahap.
riple = kb. 1 riak. 2 reaksi, suara. -kki. berdesir.
Several outside health policy experts, both Democrat and Republican, speculated yesterday that the president is unlikely to make such a large financial commitment at a time when the administration has pledged to halve a $400 billion budget deficit during the next several years. Joseph R. Antos, a scholar at the conservative American Enterprise Institute, predicted that Bush will "open this particular door. But how far does it open? We'll see."
PLEDGE = kb. janji, cagar, ikrar. -kkt. menjanjikan (a donation). 2 berjanji.
halve = kkt. membagi dua. I'll h. this candy bar with you Saya akan membagi dua batang gula-gula ini dengan kau.
SCHOLAR = kb. 1 sarjana. Greek s. sarjana bahasa Yunani. 2 pelajar. He's good s. Dia seorang pelajar yang baik.
PARTICULAR = kb. particulars j. fakta-fakta, keterangan-keterangan. -ks. 1 teliti. 2 khusus. -particularly kk. terutama sekali, (ter)istimewa.
An administration official, speaking anonymously because he was not authorized to discuss the budget in advance, said Bush is focused on both the deficit and medical costs. "He feels . . . there may need to be some additional investment to deal with the cost" of health care, the official said. "The overall gain, not only to the federal budget but the family budget, is worth that."
WORTH = kb. harga. -ks. 1 bernilai, cukup baik, bermanfaat. 2 berharga. 3 seimbang.
Allan Hubbard said Bush also thinks the government has not done enough to help people keep insurance when they change jobs. Under a law passed in 1996, an insurer may not penalize people who change jobs -- by charging them more because of preexisting medical problems -- as long as they began a new job within about two months. Hubbard said the protection should be extended to include people who take longer before they begin a new job or who go to work for themselves.
Hubbard also said "it would not surprise me" if Bush proposes to expand health savings accounts, although Hubbard would not describe the changes the White House would like.
Sumber: http://www.washingtonpost.com/wp-dyn/content/article/2006/01/24/AR2006012401838.html
Rabu, 09 September 2009
Identity Theft, The IRS and You
You come home from work one day and pry out all the junk mail from your mail box. Bills. Junk mail. IRS notice. You owe $10,000 in past due tax? This could be a sign of identity theft.
When you think of identity theft, what comes to mind? For most of us, it is a visual of some scumbag opening credit cards and buying flat screen televisions using our names. At the rate retailers are going out of business, this may not be a problem for long, but I digress.
digress = kki. menyimpang, melantur. to d. from the subject menyimpang dari pokok pembicaraan.
The new trend in identity theft is not to run up debt. Instead, thieves are selling stolen identities to illegal immigrants or individuals who really would like to leave there old identity behind. In either case, these people assume your identity using addresses you are unfamiliar with. They don’t steal money or credit from you, but they are going to work sooner or later. When they do, they may not file taxes on their earnings.
Now think this through. The IRS receives filings from employers telling it how much individuals made. If you report a figure on your tax return that is less than what the IRS receives from employers, red lights start flashing and auditors come sliding down the emergency audit pole like firemen. Okay, bad example. Regardless, the IRS is going to want to know why you are not declaring all your income and it is really going to want to know why you didn’t pay the full tax due on that income.
through = ks. 1 selesai, siap. 2 terus(an). -kk. 1 dari permulaan sampai habis. 2 terus. 3 menyambung. -kd. 1 melalui. 2 melewati, lewat. 3 karena. 4 terus. 5 diluar.
http://www.businesstaxrecovery.com/IRS-identity-theft
When you think of identity theft, what comes to mind? For most of us, it is a visual of some scumbag opening credit cards and buying flat screen televisions using our names. At the rate retailers are going out of business, this may not be a problem for long, but I digress.
digress = kki. menyimpang, melantur. to d. from the subject menyimpang dari pokok pembicaraan.
The new trend in identity theft is not to run up debt. Instead, thieves are selling stolen identities to illegal immigrants or individuals who really would like to leave there old identity behind. In either case, these people assume your identity using addresses you are unfamiliar with. They don’t steal money or credit from you, but they are going to work sooner or later. When they do, they may not file taxes on their earnings.
Now think this through. The IRS receives filings from employers telling it how much individuals made. If you report a figure on your tax return that is less than what the IRS receives from employers, red lights start flashing and auditors come sliding down the emergency audit pole like firemen. Okay, bad example. Regardless, the IRS is going to want to know why you are not declaring all your income and it is really going to want to know why you didn’t pay the full tax due on that income.
through = ks. 1 selesai, siap. 2 terus(an). -kk. 1 dari permulaan sampai habis. 2 terus. 3 menyambung. -kd. 1 melalui. 2 melewati, lewat. 3 karena. 4 terus. 5 diluar.
http://www.businesstaxrecovery.com/IRS-identity-theft
How Long Until I Receive My Tax Refund?
You’ve got through the dreaded tax deadline and have your return into the IRS. Now the fun part – how long until I receive my tax refund? Show me the money!
through = ks. 1 selesai, siap. 2 terus(an). -kk. 1 dari permulaan sampai habis. 2 terus. 3 menyambung. -kd. 1 melalui. 2 melewati, lewat. 3 karena. 4 terus. 5 diluar.
dread = kb. rasa takut, ketakutan. -kkt. takut (kepada).
Before we get into your tax refund, it is vital that you understand something very important. A big tax refund is not really a good thing. Why? Well, it means you over paid your taxes throughout the year. This effectively acted as a free loan to the federal government. Instead of waiting a year to get your money, try cutting down your tax payments during the year to the point where you will pay in what you actually owe instead of a lot more.
How Long?
Okay, let’s get to the heart of the matter. How long does it take to get your tax refund? The answer is all in how you filed your tax return. We’ll start by assuming you filed on time and don’t have any penalties or what have you awaiting at the IRS. If you filed your tax return electronically, it usually takes two to four weeks to get your tax refund. An electronic filing is processed quickly. You can also speed up the process by forgoing a tax refund check and instead asking the IRS to simply wire the money into your bank account.
Many people are nervous about the tax refund wiring option. Why? Well, do you really want the IRS to know about your bank account? At least, that is the thinking on the issue. The truth is, of course, the IRS already knows about your bank account. If it wants to find yours for some reason, it will just run your social security number through the banks to find the accounts. Giving the IRS the number to process a wire of your refund is not the equivalent of giving the IRS the keys to the castle.
Okay, what if you mailed in your tax return? The majority of people still do it his way. Unfortunately, it slows down the refund process. The IRS has millions of paper returns coming in all at the same time. It has to organize them all and then scan everything into a computer. As you can imagine, that takes a while. Once everything is process, the agency will then cut your check. It can take anywhere from one to three months with the mid point being the most likely delivery date.
No Refund Arrived
What if you don’t get a refund? It usually doesn’t mean you are getting audited. The IRS treats the two subjects differently. It could mean you owed the IRS money in the past, and said amount has been deducted from your refund. If so, you’ll usually receive a letter telling you as much.
If you don’t receive anything from the IRS, that means there is a big problem. It usually boils down to one of two things. First, the IRS may not have received your return and thus isn’t processing a refund. Second, you’ve moved and failed to notify the IRS. Tax letters are generally not forwarded by the post office. In either case, you need to contact the agency to find out what is going on.
How long does it take to receive a tax refund? Anywhere between two weeks and three months unless there is a problem.
Sumber:
http://www.businesstaxrecovery.com/tax-articles/how-long-receive-my-tax-refund
through = ks. 1 selesai, siap. 2 terus(an). -kk. 1 dari permulaan sampai habis. 2 terus. 3 menyambung. -kd. 1 melalui. 2 melewati, lewat. 3 karena. 4 terus. 5 diluar.
dread = kb. rasa takut, ketakutan. -kkt. takut (kepada).
Before we get into your tax refund, it is vital that you understand something very important. A big tax refund is not really a good thing. Why? Well, it means you over paid your taxes throughout the year. This effectively acted as a free loan to the federal government. Instead of waiting a year to get your money, try cutting down your tax payments during the year to the point where you will pay in what you actually owe instead of a lot more.
How Long?
Okay, let’s get to the heart of the matter. How long does it take to get your tax refund? The answer is all in how you filed your tax return. We’ll start by assuming you filed on time and don’t have any penalties or what have you awaiting at the IRS. If you filed your tax return electronically, it usually takes two to four weeks to get your tax refund. An electronic filing is processed quickly. You can also speed up the process by forgoing a tax refund check and instead asking the IRS to simply wire the money into your bank account.
Many people are nervous about the tax refund wiring option. Why? Well, do you really want the IRS to know about your bank account? At least, that is the thinking on the issue. The truth is, of course, the IRS already knows about your bank account. If it wants to find yours for some reason, it will just run your social security number through the banks to find the accounts. Giving the IRS the number to process a wire of your refund is not the equivalent of giving the IRS the keys to the castle.
Okay, what if you mailed in your tax return? The majority of people still do it his way. Unfortunately, it slows down the refund process. The IRS has millions of paper returns coming in all at the same time. It has to organize them all and then scan everything into a computer. As you can imagine, that takes a while. Once everything is process, the agency will then cut your check. It can take anywhere from one to three months with the mid point being the most likely delivery date.
No Refund Arrived
What if you don’t get a refund? It usually doesn’t mean you are getting audited. The IRS treats the two subjects differently. It could mean you owed the IRS money in the past, and said amount has been deducted from your refund. If so, you’ll usually receive a letter telling you as much.
If you don’t receive anything from the IRS, that means there is a big problem. It usually boils down to one of two things. First, the IRS may not have received your return and thus isn’t processing a refund. Second, you’ve moved and failed to notify the IRS. Tax letters are generally not forwarded by the post office. In either case, you need to contact the agency to find out what is going on.
How long does it take to receive a tax refund? Anywhere between two weeks and three months unless there is a problem.
Sumber:
http://www.businesstaxrecovery.com/tax-articles/how-long-receive-my-tax-refund
Selasa, 08 September 2009
How To Save On Taxes
You just got done paying taxes or filing an extension and are grumpy. If you are smart, you will use this miserable event to teach yourself how to save on taxes next year.
grumpy = galak
miserable = ks. 1 tidak senang. 2 yang menyedihkan. 3 miskin, sengsara. -miserably kk. sangat buruk, tidak keruan.
How To Save On Taxes
For most people, preparing and filing taxes is the equivalent of sticking a pin in a body part. It simply is not fun. Heck, it is not even amusing. One of the reasons is you inevitably find some part of the process where you wonder how you could possible not have more deductions or credits. You fully realize you should tweak your finances to maximize certain expense areas and, by God, you are definitely going to figure out how to save on taxes next year. This admirable goal, much like a New Years Resolution, fades into antiquity after about a month. You should not let this happen!
stick = kb. 1 (walking) tongkat. 2 batang. 3 potongan. 4 (golf, hockey) getokan. 5 Av.: kemudi. -kkt. (stuck) 1 menikam. 2 menusuk. 3 memasukkan. 4 melekatkan. 5 menempelkan. menyuntingkan. 7 menjulurkan. 8 Inf.: menipu. 9 memancangkan. 10 mencocokkan.
pin = kb. 1 peniti. 2 lencana. -kkt. (pinned) 1 menyematkan (a dress). 2meletakkan, menggantungkan. 3 menjepit.
heck = kb. to give s.o. h. mengomeli seseorang. -kseru persetan, buset.
amuse = kkt. 1 membuat orang tertawa, menggelikan hati. 2 memikat, menawan, menarik perhatian. 3 geli. --amused ks. girang, terhibur, senang hati. --amusing ks. lucu.
inevitable = ks. tak dapat dielakkan/dihindarkan. -inevitably kk. yang tak terelakkan, pasti jadi.
twear = kkt. menjewer (an ear).
admirable = ks. mengagumkan, terpuji, dpt dikagumi.
fade = kkt. memudarkan. -kki. 1 meluntur, menjadi pudar. 2 menghilang. 3 layu. to f. away 1 menjadi kabur, berangsur hilang. 2 mati, wafat. 3 menghilang, berangsur pergi. -fading kb. 1 kehilangan warna. 2 TV, Tel.: kehilangan kekuatan suara atau gambar.
There is no better time than now to proactively plan how to save on taxes for next year. Having just completed your taxes, you inherently know where you got hurt. Even if you do not, you inevitably felt like you paid more than your fair share. To avoid this, you need to do some tax planning.
inherent = ks. yang melekat, yang menjadi sifatnya. his i. honesty kejujurannya yang menjadi sifatnya itu. -inherently kk. sudah menjadi sifat. He's inherently lazy Malas sudah menjadi sifatnya/pembawaannya.
Stop groaning. Tax planning may sound boring, but it actually very exciting if you think about it the right way. If I told you a trip to Vegas would definitely result in $2,000 in your pocket, would you be excited to go? Of course you would. Well, tax planning has the same the result. You need to focus on the amount of money you will save.
groan = kb. rintihan, erangan, resah. -kki. 1 merintih, mengerang. 2 berkeluh keberatan. -groaning kb. suara mengerang/merintih, erang, rintihan.
The best way to go about tax planning is with a proactive accountant. Yes, they cost money, but they will save you far more than you spend and you can write off their fees. A win-win if ever there was one.
When selecting a CPA, you want a proactive one. You want them to look at your tax return and tell you where money can be saved. Then you want to know exactly how much you would have saved last year if you had taken the recommended steps. Yes, it will be painful, but it will also motivate you to get on board with their plan and stick with it.
Paying taxes this year was undoubtedly a painful experience. Analyze the specific areas that caused you pain to figure how to save on taxes next year.
pain = kb. perasaan sakit, kesakitan. -kkt. 1 menyakitkan. 2 menyedihkan (of news).
http://www.businesstaxrecovery.com/how_to_save_on_taxes
grumpy = galak
miserable = ks. 1 tidak senang. 2 yang menyedihkan. 3 miskin, sengsara. -miserably kk. sangat buruk, tidak keruan.
How To Save On Taxes
For most people, preparing and filing taxes is the equivalent of sticking a pin in a body part. It simply is not fun. Heck, it is not even amusing. One of the reasons is you inevitably find some part of the process where you wonder how you could possible not have more deductions or credits. You fully realize you should tweak your finances to maximize certain expense areas and, by God, you are definitely going to figure out how to save on taxes next year. This admirable goal, much like a New Years Resolution, fades into antiquity after about a month. You should not let this happen!
stick = kb. 1 (walking) tongkat. 2 batang. 3 potongan. 4 (golf, hockey) getokan. 5 Av.: kemudi. -kkt. (stuck) 1 menikam. 2 menusuk. 3 memasukkan. 4 melekatkan. 5 menempelkan. menyuntingkan. 7 menjulurkan. 8 Inf.: menipu. 9 memancangkan. 10 mencocokkan.
pin = kb. 1 peniti. 2 lencana. -kkt. (pinned) 1 menyematkan (a dress). 2meletakkan, menggantungkan. 3 menjepit.
heck = kb. to give s.o. h. mengomeli seseorang. -kseru persetan, buset.
amuse = kkt. 1 membuat orang tertawa, menggelikan hati. 2 memikat, menawan, menarik perhatian. 3 geli. --amused ks. girang, terhibur, senang hati. --amusing ks. lucu.
inevitable = ks. tak dapat dielakkan/dihindarkan. -inevitably kk. yang tak terelakkan, pasti jadi.
twear = kkt. menjewer (an ear).
admirable = ks. mengagumkan, terpuji, dpt dikagumi.
fade = kkt. memudarkan. -kki. 1 meluntur, menjadi pudar. 2 menghilang. 3 layu. to f. away 1 menjadi kabur, berangsur hilang. 2 mati, wafat. 3 menghilang, berangsur pergi. -fading kb. 1 kehilangan warna. 2 TV, Tel.: kehilangan kekuatan suara atau gambar.
There is no better time than now to proactively plan how to save on taxes for next year. Having just completed your taxes, you inherently know where you got hurt. Even if you do not, you inevitably felt like you paid more than your fair share. To avoid this, you need to do some tax planning.
inherent = ks. yang melekat, yang menjadi sifatnya. his i. honesty kejujurannya yang menjadi sifatnya itu. -inherently kk. sudah menjadi sifat. He's inherently lazy Malas sudah menjadi sifatnya/pembawaannya.
Stop groaning. Tax planning may sound boring, but it actually very exciting if you think about it the right way. If I told you a trip to Vegas would definitely result in $2,000 in your pocket, would you be excited to go? Of course you would. Well, tax planning has the same the result. You need to focus on the amount of money you will save.
groan = kb. rintihan, erangan, resah. -kki. 1 merintih, mengerang. 2 berkeluh keberatan. -groaning kb. suara mengerang/merintih, erang, rintihan.
The best way to go about tax planning is with a proactive accountant. Yes, they cost money, but they will save you far more than you spend and you can write off their fees. A win-win if ever there was one.
When selecting a CPA, you want a proactive one. You want them to look at your tax return and tell you where money can be saved. Then you want to know exactly how much you would have saved last year if you had taken the recommended steps. Yes, it will be painful, but it will also motivate you to get on board with their plan and stick with it.
Paying taxes this year was undoubtedly a painful experience. Analyze the specific areas that caused you pain to figure how to save on taxes next year.
pain = kb. perasaan sakit, kesakitan. -kkt. 1 menyakitkan. 2 menyedihkan (of news).
http://www.businesstaxrecovery.com/how_to_save_on_taxes
Minggu, 06 September 2009
Withholding
Tax is withheld on your income because our tax system is in actuality a "pay as you go" system. Many look at taxes as something due all at once in April, but that is simply not the case. What you pay in April is the shortfall between the total amount of tax that you owe and your year-long payments. A withholding tax is imposed on salary and wage income, tip income, certain gambling winnings, pensions, and retirement distributions. You may avoid withholding on retirement payments. Withholding is also imposed on interest and dividends if you do not give your taxpayer identification number to a payer of interest or dividend income.
1
Income Taxes Withheld on Wages
The amount of income tax withheld for your wage bracket depends on your marital status and the number of allowances you claim. You file a withholding certificate, Form W-4, with your employer, indicating your status and allowances. Without a Form W-4, your employer must withhold taxes as if you are a single person with no exemptions. Back to top
2
Form W-2
By February 2, 2009 (January 31, 2009, is on a Saturday), your employer must give you duplicate copies of your 2008 Form W-2, which is a record of your pay and the withheld income and Social Security taxes. If you leave your job during the year, you may ask your employer for a Form W-2 by making a written request within 30 days of leaving the job. Back to top
3
Withholdings Should Cover Estimated Tax
You may find that you are withholding too much tax or too little. You can adjust your withholding at any time by filing a W-4 with your employer. In fixing the rate of withholding on your wages, pay attention to the tests for determining whether sufficient income taxes have been withheld from your pay. A penalty will apply if your wage withholdings plus estimated tax payments (including prior year overpayments credited to current estimated tax) do not equal the lesser of 90% of your current tax liability or the required percentage of the prior year's tax.
Taxes are withheld from payments made to you for services that you perform as an employee. By filing Form W-4, you claim allowances for yourself, your spouse, and dependents. The number of allowances claimed will either decrease or increase the amount of withholding. On Form W-4, you also may claim withholding allowances for itemized deductions and credits such as the child tax credit, child and dependent care credit, education tax credits, adoption credit, retirement savings credit, prior-year AMT credit, credit for the elderly and disabled, the foreign tax credit, credit for home mortgage interest, the general business credit, and earned income credit (if you have not filed for an advance payment of the credit on Form W-5).
If you need to increase your withholding, such as to cover investment or self-employment income, you can choose not to claim all of the allowances allowed on Form W-4. You can also direct your employer on Form W-4 to withhold an additional flat amount from each paycheck. Back to top
4
Are You Withholding the Right Amount?
You do not want to withhold too little from your pay and you do not want to withhold too much. You may need to withhold more to avoid a large tax payment or an estimated tax penalty when you file your return, especially if you have substantial income from investments or a business. On the other hand, if you have been receiving large refunds from the IRS, you may want to consider reducing your Form W-4 allowances to avoid over-withholding. Balance the loss of the use of your earnings during the year against the value of receiving a substantial refund check from the IRS after you file your return.
Working couples filing jointly should figure withholding allowances on their combined wage income, deductions, adjustments, and credits, but can divide the total number of allowances between them in any way they wish. On separate returns, the allowances must be figured separately.
If you work for two or more employers at the same time, you figure your withholding allowances based on the total income, and then split the allowances between the two jobs in any way you wish. Do not claim the same allowances with more than one employer at the same time.
File a new Form W-4 each year for withholding allowances based on your anticipated deductions and credits. Furthermore, you may have to file a new form to increase your withholding if withholding allowances you had been claiming are no longer allowed. Back to top
5
Part-Year Employees May Avoid Overwithholding
Starting a new job in the middle of a year presents a withholding problem. The amount of tax withheld from your paycheck is figured by taking your weekly pay and multiplying this by a 52-week pay period. To alleviate this problem, you may ask your employer to calculate withholdings on what is known as the "part year" method if your work days during the year are expected to be 245 or fewer. As an alternative, you may elect to claim extra exemptions on Form W-4, which has the same effect of reducing the amount withheld each week from your paycheck. Back to top
6
When to Change Withholdings
Adjust withholding if there will be a significant change in the tax you owe for 2009. Credits such as the child tax credit, Hope scholarship credit, and lifetime learning credit may reduce your 2009 tax. By decreasing your withholding now, you can get the benefit of the lower taxes throughout the year. On the other hand, a withholding increase may be advisable if previously claimed deductions or credits will not be available to you, or if you expect an increase in nonwage income such as capital gains. Check the instructions to Forms W-4 and 1040-ES for 2009 to help you adjust your withholdings. Back to top
Summary
The amount of income tax withheld for your wage bracket depends on your marital status and the number of allowances you claim.
You may increase or decrease withholdings on your wages by submitting a new Form W-4 to your employer. Withholdings may be reduced by claiming allowances based on tax deductions and credits.
Make sure that tax withholdings meet or help you meet the estimated tax rules that require withholdings plus estimated tax payments to equal 90% of your current-year liability or the required percentage of the prior year's liability
If you are a part-year employee, you may ask your employer to calculate withholdings on what is known as the "part year" method.
http://www.businesstaxrecovery.com/articles
1
Income Taxes Withheld on Wages
The amount of income tax withheld for your wage bracket depends on your marital status and the number of allowances you claim. You file a withholding certificate, Form W-4, with your employer, indicating your status and allowances. Without a Form W-4, your employer must withhold taxes as if you are a single person with no exemptions. Back to top
2
Form W-2
By February 2, 2009 (January 31, 2009, is on a Saturday), your employer must give you duplicate copies of your 2008 Form W-2, which is a record of your pay and the withheld income and Social Security taxes. If you leave your job during the year, you may ask your employer for a Form W-2 by making a written request within 30 days of leaving the job. Back to top
3
Withholdings Should Cover Estimated Tax
You may find that you are withholding too much tax or too little. You can adjust your withholding at any time by filing a W-4 with your employer. In fixing the rate of withholding on your wages, pay attention to the tests for determining whether sufficient income taxes have been withheld from your pay. A penalty will apply if your wage withholdings plus estimated tax payments (including prior year overpayments credited to current estimated tax) do not equal the lesser of 90% of your current tax liability or the required percentage of the prior year's tax.
Taxes are withheld from payments made to you for services that you perform as an employee. By filing Form W-4, you claim allowances for yourself, your spouse, and dependents. The number of allowances claimed will either decrease or increase the amount of withholding. On Form W-4, you also may claim withholding allowances for itemized deductions and credits such as the child tax credit, child and dependent care credit, education tax credits, adoption credit, retirement savings credit, prior-year AMT credit, credit for the elderly and disabled, the foreign tax credit, credit for home mortgage interest, the general business credit, and earned income credit (if you have not filed for an advance payment of the credit on Form W-5).
If you need to increase your withholding, such as to cover investment or self-employment income, you can choose not to claim all of the allowances allowed on Form W-4. You can also direct your employer on Form W-4 to withhold an additional flat amount from each paycheck. Back to top
4
Are You Withholding the Right Amount?
You do not want to withhold too little from your pay and you do not want to withhold too much. You may need to withhold more to avoid a large tax payment or an estimated tax penalty when you file your return, especially if you have substantial income from investments or a business. On the other hand, if you have been receiving large refunds from the IRS, you may want to consider reducing your Form W-4 allowances to avoid over-withholding. Balance the loss of the use of your earnings during the year against the value of receiving a substantial refund check from the IRS after you file your return.
Working couples filing jointly should figure withholding allowances on their combined wage income, deductions, adjustments, and credits, but can divide the total number of allowances between them in any way they wish. On separate returns, the allowances must be figured separately.
If you work for two or more employers at the same time, you figure your withholding allowances based on the total income, and then split the allowances between the two jobs in any way you wish. Do not claim the same allowances with more than one employer at the same time.
File a new Form W-4 each year for withholding allowances based on your anticipated deductions and credits. Furthermore, you may have to file a new form to increase your withholding if withholding allowances you had been claiming are no longer allowed. Back to top
5
Part-Year Employees May Avoid Overwithholding
Starting a new job in the middle of a year presents a withholding problem. The amount of tax withheld from your paycheck is figured by taking your weekly pay and multiplying this by a 52-week pay period. To alleviate this problem, you may ask your employer to calculate withholdings on what is known as the "part year" method if your work days during the year are expected to be 245 or fewer. As an alternative, you may elect to claim extra exemptions on Form W-4, which has the same effect of reducing the amount withheld each week from your paycheck. Back to top
6
When to Change Withholdings
Adjust withholding if there will be a significant change in the tax you owe for 2009. Credits such as the child tax credit, Hope scholarship credit, and lifetime learning credit may reduce your 2009 tax. By decreasing your withholding now, you can get the benefit of the lower taxes throughout the year. On the other hand, a withholding increase may be advisable if previously claimed deductions or credits will not be available to you, or if you expect an increase in nonwage income such as capital gains. Check the instructions to Forms W-4 and 1040-ES for 2009 to help you adjust your withholdings. Back to top
Summary
The amount of income tax withheld for your wage bracket depends on your marital status and the number of allowances you claim.
You may increase or decrease withholdings on your wages by submitting a new Form W-4 to your employer. Withholdings may be reduced by claiming allowances based on tax deductions and credits.
Make sure that tax withholdings meet or help you meet the estimated tax rules that require withholdings plus estimated tax payments to equal 90% of your current-year liability or the required percentage of the prior year's liability
If you are a part-year employee, you may ask your employer to calculate withholdings on what is known as the "part year" method.
http://www.businesstaxrecovery.com/articles
States With No Income Tax
If you are considering relocating to a new state, taxes should be something you consider. Specifically, there are a number of states with no income tax.
States With No Income Tax
As you well know, paying taxes is a grind. Paying federal taxes is the biggest burden, but state income tax can quickly add up as well. There are, however, some states with no income tax. Depending on your earnings, this can save you hundreds or thousands of dollars a year when tax time rolls around.
There are seven glorious states with no income tax. In no particular order, they are:
- Alaska
- Florida
- Nevada
- South Dakota
- Texas
- Washington
- Wyoming
There are two other states that technically collect income tax, but do not for all practical purposes. They are Tennessee and New Hampshire. These two do not collect a tax on your earnings, but they do collect tax if you receive dividends. Under tax law, dividends are technically considered to be income, thus neither Tennessee nor New Hampshire are technically
If you are considering moving to another state, taxes are something you should definitely take into consideration. While a factor, they should probably not be the overriding one in your decision.
Taxing Rich Wouldn't Close the Gap, but Would Shrink It
by David Wessel
Thursday, September 3, 2009
Thursday, September 3, 2009
provided by
He also continues to promise to limit tax increases to incomes above $250,000 a year for couples and $200,000 for individuals — "the rich."
Talking about tax increases usually dissolves into shouting matches. The right says tax increases will choke off growth and massacre small business. The left says tax increases are vital to finance much-needed investments and that the rich can pay more.
Hard numbers and recent history suggest two facts. One, the deficit is too wide to be closed exclusively by raising taxes on "the rich." Two, "the rich" do have a lot of money, even after the bust, and raising their taxes would raise significant sums without hampering the economyStart with some rough arithmetic. The three million or so fortunate taxpayers whom Mr. Obama counts as rich are projected to earn about $27.5 trillion from 2010 through 2019, according to the Tax Policy Center, a Washington think tank, and about $23.9 trillion after deductions. They are projected to pay $7.4 trillion in taxes. That's 31.1% of every dollar of taxable income, on average.
To squeeze an additional $9 trillion out of these taxpayers would require boosting that to 68.9%. And that assumes these taxpayers wouldn't find tax shelters to hide their income or work less. There isn't enough money in the over-$250,000 crowd to stick thi with the $9 trillion tab.
Shrinking the deficit will require slowing the growth of spending, particularly on health care. But neither politicians nor their constituents show any willingness to cut spending enough to avoid tax increases. So the issue is whose taxes, and the arithmetic suggests it won't only be those who make more than $250,000 a year.
The best-off Americans do pay a big chunk of taxes. The Tax Policy Center estimates that the top-earning 1% of households will earn 16% of all the income this year and pay 23% of all federal taxes. But that doesn't mean the government couldn't raise more from thi, even if some stay-at-home spouses of well-off Americans might be less inclined to work and others maneuvered to shield income from the IRS.
Congressional estimators — taking account of the propensity of people to dodge taxes when rates rise — say that for every percentage-point increase in the marginal tax rate levied on those with taxable incomes above $372,950, the government would raise $73.5 billion over 10 years. (Before the bailouts, that used to sound like a lot of money. It still is.)
There is and will be a heated argument over how much the economy would suffer if those tax rates went up. But tax rates on those Americans were about three percentage points higher during the Clinton years.
"The 1990s suggests we could raise more money from high-income people...and still have a strong economy," says Joel Slirod, a University of Michigan tax economist. But the first half of the 2000s suggested the economy also can grow when their taxes are cut. And the latest recession, unlike some others, didn't coincide with any change in tax rates.
Which is another way of saying that tax rates matter — to taxpayers and to the government's revenue. But they are far from the only factor in the pace of economic growth.
Write to David Wessel at capital@wsj.com
Minggu, 30 Agustus 2009
Why the federal deficit will raise taxes
By Jeanne Sahadi, CNNMoney.com senior writer
On Thursday August 27, 2009, 1:44 pm EDT
A $9 trillion federal deficit over 10 years may be too hard to comprehend. But this part is easy: Such unwieldy amounts of debt could have an impact on Americans' bottom line one way or the other -- if not tomorrow, then the day after.
comprehend = kkt. 1 memahami, mengerti. Some theories are difficult to c. Ada teori-teori yang sukar dipahami. 2 terdiri dari, meliputi. Indonesia comprehends many islands Indonesia terdiri dari banyak pulau.
The U.S. government has been spending a great deal more than it has been taking in, and it is on track to do so well beyond the next 10 years. It has been borrowing money to make all that spending possible and it has to pay the money back with interest. How, you ask? By borrowing more.
has been spending: present perfect continous: to show that something started in the past and has continued up until now
The solution is straightforward if unpleasant: Shy of finding a fairy willing to leave trillions under Uncle Sam's pillow, lawmakers will have to raise taxes and cut spending.
The more the country lives on a credit card, the more it makes itself beholden to the demands of its creditors -- many of which are overseas. The danger is that buyers of U.S. debt could become concerned that the country is running too high a balance. If so, they will demand higher interest rates -- thereby making the country's debt problem worse -- or they'll put their money elsewhere.
At that point, things would get ugly.
"Taxes would rise to levels that would make a Scandinavian revolt. And the government would not be able to provide anything but the most basic public services. We would no longer be a great power (or even a mediocre one), and the social safety net would evaporate," tax policy expert and Syracuse University professor Len Burman wrote in a recent op-ed cheerfully titled "Catastrophic Budget Failure."
ugly = ks. 1 jelek, buruk. u. face muka yang jelek. 2 berbahaya, parah (wound). 3 Inf.: tak pantas, kurang ajar, kasar (of a statement or action). u. duckling seorang gadis yang buruk rupanya sewaktu kecil tapi setelah dewasa menjadi molek.
revolt = kb. pemberontakan. -kki. 1 memberontak (against terhadap). 2 berrevolusi. 3 bangkit (against menentang). -revolting ks. memuakkan, menjijikkan.
mediocre = ks. sedang-sedang, cukupan.
evavorate = kkt. menguapkan. Heat evaporates water Panas menguapkan air. -kki. menguap. Water evaporates Air menguap. -evaporated ks. yang di uapkan
catastrophic = ks. yang merupakan bencana besar.
That's why acting sooner rather than later makes sense. But acting too soon could cause its own set of problems since the economy is only beginning to lick its wounds from a punishing recession. Economists and tax experts, no matter their ideological position, agree raising taxes when the economy is down is self-defeating.
But as the economy finds a solid footing, the hard choices will have to be made.
lick = kb. 1 jilatan. 2 Inf.: sedikit. -kkt. 1 menjilat (a stamp). 2 Inf.: memecahkan (a problem). 3 Inf.: memukul. 4 Inf.: mengalahkan, mengatasi, mencukur. -licking kb. Inf.: 1 pukulan. 2 Inf.: kekalahan.
wound = kb. luka. bullet w. luka kena tembakan. -kkt. melukai.
defeat = kb. 1 kekalahan. 2 penaklukan. -kkt. 1 mengalahkan, menggulingkan (the enemy). 2 menggagalkan(a motion). 3 Sport : menundukkan.
"We need to do this in stages at the right time," said David Walker, former U.S. comptroller general, in a CNNMoney.com video.
Right now there is a lot of talk, but not a lot of planning, about how to address the situation.
address = kb., 1 alamat. 2 amanat, pidato 3 berbicara, menegur. 4 memanggil, menyapa, menyebut.
In fact, President Obama is pledging to keep taxes low for most people.
For example, Obama has proposed keeping in place the 2001 and 2003 tax cuts for families making less than $250,000 (under $200,000 for individuals). The cuts are scheduled to expire in 2011.
A number of temporary tax relief measures, including the patch to protect the middle class from the Alternative Minimum Tax, are set to expire even sooner. And Obama has said he would like to keep many of those measures in place as well.
Experts say that's not going to cut it.
"Taxes are going up and they're going up for a lot more people than those making more than $250,000. Why? Math. The numbers don't come close to working," Walker said.
patch = kb. 1 Auto.: tambalan. 2 potongan kecil (over an eye). 3 bidang kecil tanah. 4 potong. -kkt. menambal, menempeli. patch-up ks. seada-adanya. p. up job pekerjaan/ tambalsulam seada-adanya.
For instance, the president's proposal to raise taxes only on high-income families would raise an additional $600 billion over 10 years, said Roberton Williams, a senior fellow at the nonpartisan Tax Policy Center.
That's not a lot when the government is staring at a 10-year deficit of $9 trillion. A 10-year deficit of that magnitude means the debt held by the public -- the accumulation of all annual deficits over the decades -- would reach 82% of gross domestic product come 2019. That's double the 41% recorded in 2008.
instance = kb. 1 hal. 2 contoh. for i. misalnya, umpamanya.
When lawmakers do decide to act, they will need to do more than just tinker with tax rates, according to Williams.
Tax experts have been calling for fundamental tax reform to make the system less complex. Plus, Williams said, Congress will likely need to seek out a new source of revenue beyond the income tax. One idea that has been talked about increasingly is a value-added tax, which is a tax on goods and services at every stage of production up to the point of sale.
seek = kkt. (sought) 1 mencari (a job, book). 2 meminta. 3 mencoba. -kki. dicari, diketemukan.
A multi-pronged approach may work best because "no piece by itself is enough," Williams said. "There's a really big hole to fill and [lawmakers] are just talking about dollops."
prong = kb. 1 gigi garpu. 2 cabang (of antler).
On Thursday August 27, 2009, 1:44 pm EDT
A $9 trillion federal deficit over 10 years may be too hard to comprehend. But this part is easy: Such unwieldy amounts of debt could have an impact on Americans' bottom line one way or the other -- if not tomorrow, then the day after.
comprehend = kkt. 1 memahami, mengerti. Some theories are difficult to c. Ada teori-teori yang sukar dipahami. 2 terdiri dari, meliputi. Indonesia comprehends many islands Indonesia terdiri dari banyak pulau.
The U.S. government has been spending a great deal more than it has been taking in, and it is on track to do so well beyond the next 10 years. It has been borrowing money to make all that spending possible and it has to pay the money back with interest. How, you ask? By borrowing more.
has been spending: present perfect continous: to show that something started in the past and has continued up until now
The solution is straightforward if unpleasant: Shy of finding a fairy willing to leave trillions under Uncle Sam's pillow, lawmakers will have to raise taxes and cut spending.
The more the country lives on a credit card, the more it makes itself beholden to the demands of its creditors -- many of which are overseas. The danger is that buyers of U.S. debt could become concerned that the country is running too high a balance. If so, they will demand higher interest rates -- thereby making the country's debt problem worse -- or they'll put their money elsewhere.
At that point, things would get ugly.
"Taxes would rise to levels that would make a Scandinavian revolt. And the government would not be able to provide anything but the most basic public services. We would no longer be a great power (or even a mediocre one), and the social safety net would evaporate," tax policy expert and Syracuse University professor Len Burman wrote in a recent op-ed cheerfully titled "Catastrophic Budget Failure."
ugly = ks. 1 jelek, buruk. u. face muka yang jelek. 2 berbahaya, parah (wound). 3 Inf.: tak pantas, kurang ajar, kasar (of a statement or action). u. duckling seorang gadis yang buruk rupanya sewaktu kecil tapi setelah dewasa menjadi molek.
revolt = kb. pemberontakan. -kki. 1 memberontak (against terhadap). 2 berrevolusi. 3 bangkit (against menentang). -revolting ks. memuakkan, menjijikkan.
mediocre = ks. sedang-sedang, cukupan.
evavorate = kkt. menguapkan. Heat evaporates water Panas menguapkan air. -kki. menguap. Water evaporates Air menguap. -evaporated ks. yang di uapkan
catastrophic = ks. yang merupakan bencana besar.
That's why acting sooner rather than later makes sense. But acting too soon could cause its own set of problems since the economy is only beginning to lick its wounds from a punishing recession. Economists and tax experts, no matter their ideological position, agree raising taxes when the economy is down is self-defeating.
But as the economy finds a solid footing, the hard choices will have to be made.
lick = kb. 1 jilatan. 2 Inf.: sedikit. -kkt. 1 menjilat (a stamp). 2 Inf.: memecahkan (a problem). 3 Inf.: memukul. 4 Inf.: mengalahkan, mengatasi, mencukur. -licking kb. Inf.: 1 pukulan. 2 Inf.: kekalahan.
wound = kb. luka. bullet w. luka kena tembakan. -kkt. melukai.
defeat = kb. 1 kekalahan. 2 penaklukan. -kkt. 1 mengalahkan, menggulingkan (the enemy). 2 menggagalkan(a motion). 3 Sport : menundukkan.
"We need to do this in stages at the right time," said David Walker, former U.S. comptroller general, in a CNNMoney.com video.
Right now there is a lot of talk, but not a lot of planning, about how to address the situation.
address = kb., 1 alamat. 2 amanat, pidato 3 berbicara, menegur. 4 memanggil, menyapa, menyebut.
In fact, President Obama is pledging to keep taxes low for most people.
For example, Obama has proposed keeping in place the 2001 and 2003 tax cuts for families making less than $250,000 (under $200,000 for individuals). The cuts are scheduled to expire in 2011.
A number of temporary tax relief measures, including the patch to protect the middle class from the Alternative Minimum Tax, are set to expire even sooner. And Obama has said he would like to keep many of those measures in place as well.
Experts say that's not going to cut it.
"Taxes are going up and they're going up for a lot more people than those making more than $250,000. Why? Math. The numbers don't come close to working," Walker said.
patch = kb. 1 Auto.: tambalan. 2 potongan kecil (over an eye). 3 bidang kecil tanah. 4 potong. -kkt. menambal, menempeli. patch-up ks. seada-adanya. p. up job pekerjaan/ tambalsulam seada-adanya.
For instance, the president's proposal to raise taxes only on high-income families would raise an additional $600 billion over 10 years, said Roberton Williams, a senior fellow at the nonpartisan Tax Policy Center.
That's not a lot when the government is staring at a 10-year deficit of $9 trillion. A 10-year deficit of that magnitude means the debt held by the public -- the accumulation of all annual deficits over the decades -- would reach 82% of gross domestic product come 2019. That's double the 41% recorded in 2008.
instance = kb. 1 hal. 2 contoh. for i. misalnya, umpamanya.
When lawmakers do decide to act, they will need to do more than just tinker with tax rates, according to Williams.
Tax experts have been calling for fundamental tax reform to make the system less complex. Plus, Williams said, Congress will likely need to seek out a new source of revenue beyond the income tax. One idea that has been talked about increasingly is a value-added tax, which is a tax on goods and services at every stage of production up to the point of sale.
seek = kkt. (sought) 1 mencari (a job, book). 2 meminta. 3 mencoba. -kki. dicari, diketemukan.
A multi-pronged approach may work best because "no piece by itself is enough," Williams said. "There's a really big hole to fill and [lawmakers] are just talking about dollops."
prong = kb. 1 gigi garpu. 2 cabang (of antler).
Rabu, 06 Mei 2009
Let Obama Help Pay for Home Upgrades
by AnnaMaria Andriotis (Author Archive)
Updated on April 30, 2009.
Making energy-efficient home improvements will not only help cut your cooling costs this summer, but can also provide a sizable break on your tax bill come tax season.
Thanks to the stimulus package, which passed in February, consumers can receive tax credits for up to 30% of the cost to make energy-efficiency improvements to their home, like adding insulation or new windows. The maximum $1,500 credit (one-time only) is a significant jump from the $500 offered in years past and will be available through 2010. (Many of the previous credits expired at the end of 2007.)
Both the tax and the energy savings could really add up, especially considering that the average household spends $1,000 a year on heating and cooling costs, says Ronnie Kweller, spokeswoman for the Alliance to Save Energy.
Still many of these purchases – like central air conditioners and a new Energy Star-rated roof – are so expensive that consumers must weigh the upfront costs with potential savings (often, installation costs won't count toward the credit either). Keep in mind that you won't be receiving that 30% tax credit for months after the project is probably complete. And, in some cases, such moves may not be worth it. Ideally, you want to replace the roof, A/C unit or insulation when they can no longer offer any savings on your cooling and heating bills and that usually happens when they reach the end of their lifespan, says Kweller.
Knowing which products qualify for the new tax credits can also be tricky. For example, previous tax credits were doled out to consumers who purchased Energy Star windows. After June 1, not every Energy Star-certified window qualifies, and the ones that do adhere to stricter eligibility requirements.
Here are four home improvements that can help you cut your summer energy costs and get Uncle Sam to pick up part of the tab:
Adding Insulation
Insulation is the cheapest home improvement that qualifies for the tax credits, says Karen Schneider, spokeswoman for Energy Star. And by installing it you could save up to 20% on your energy bills.
For the new insulation to qualify, it must meet the 2009 International Energy Conservation Code (check product labeling or call the manufacturer) and carry a two-year warranty (or be expected to last five years). Insulation at Home Depot and Lowe’s costs $10 (for a 32-foot roll) and $56 (for a 119-square foot roll), respectively.
If your home is less than five years old, you won't need new insulation, says Schneider. If your home is older, measure the thickness of the insulation in your attic. Insulation is measured in R-values, which stands for thermal resistance. It should range between R-30 and R-60 (for the northern parts of the country), she says. Every three to five R-values typically equal an inch of insulation, so R-30 could range between six and 10 inches, according to the Alliance to Save Energy. Also check the insulation in your crawl space or basement.
Click here for directions on installing insulation. Or hire a professional contractor, but installation won’t count toward the tax credit.
Purchasing New Windows and Doors
Before, tax credits for windows and doors were capped at $200. Now you can get up to $1,500. But that's only if those doors and windows meet certain criteria.
Windows, doors and skylights need a label from the National Fenestration Rating Council (NFRC) that says their U-factor – a measure of how well they’ll insulate the home from heat – is no more than 0.30. The label also needs to list a Solar Heat Gain Coefficient (SHGC), which measures how much of the sun’s heat penetrates into the home, of no more than 0.30.
Still, qualifying windows are expensive, with most ranging from $270 to $1,100, says Susan Roeder, spokeswoman for Andersen Windows and Doors, a window and door manufacturer based in Bayport, Minn. Doors can start at around $840 and go as high as $2,500.
Storm windows and doors can also qualify. The storm window's manufacturer certification statement lists the type of exterior windows, including single pane or clear glass, which it can be combined with to be eligible for the credit. Storm doors need to accompany a tax-credit-eligible wooden door without exceeding a combined U-factor of 0.30.
Installing Air Conditioners
Energy Star estimates the retail price and installation of a five-ton central air conditioner at more than $1,700. That’s hardly cheap, but luckily these systems only need to be replaced once every 10 to 12 years, says Schneider.
To qualify, central air conditioners need a Seasonal Energy Efficiency Ratio (SEER), which measures the efficiency of central air, of at least 16 and an Energy Efficiency Rating (EER), which tracks how it operates once the outdoor temperature reaches 95 degrees, of at least 13.
For a list of qualified A/Cs, click here.
Replacing the Roof
Assuming your roof is around 15 years old, replacing it with a metal or asphalt roof that meets Energy Star requirements will help keep your home cool by reflecting the sun’s heat -- especially if you live in a warm location, says Schneider.
This is a pricey project, however, running around $200 to $300 per square, says John New, a salesman at American Building Components, a manufacturer of metal roofing in Nicholasville, Ky. For a 25-square roof – a common size – it will cost $5,000 to $7,500.
But once you hit $5,000 you'll be eligible for the full $1,500 tax credit, says Schneider.
(Corrected April 28, 2009: As originally published, we stated the price of metal roofs using square feet. The correct measurement is in squares. One square equals 100 square feet.)
Updated on April 30, 2009.
Making energy-efficient home improvements will not only help cut your cooling costs this summer, but can also provide a sizable break on your tax bill come tax season.
Thanks to the stimulus package, which passed in February, consumers can receive tax credits for up to 30% of the cost to make energy-efficiency improvements to their home, like adding insulation or new windows. The maximum $1,500 credit (one-time only) is a significant jump from the $500 offered in years past and will be available through 2010. (Many of the previous credits expired at the end of 2007.)
Both the tax and the energy savings could really add up, especially considering that the average household spends $1,000 a year on heating and cooling costs, says Ronnie Kweller, spokeswoman for the Alliance to Save Energy.
Still many of these purchases – like central air conditioners and a new Energy Star-rated roof – are so expensive that consumers must weigh the upfront costs with potential savings (often, installation costs won't count toward the credit either). Keep in mind that you won't be receiving that 30% tax credit for months after the project is probably complete. And, in some cases, such moves may not be worth it. Ideally, you want to replace the roof, A/C unit or insulation when they can no longer offer any savings on your cooling and heating bills and that usually happens when they reach the end of their lifespan, says Kweller.
Knowing which products qualify for the new tax credits can also be tricky. For example, previous tax credits were doled out to consumers who purchased Energy Star windows. After June 1, not every Energy Star-certified window qualifies, and the ones that do adhere to stricter eligibility requirements.
Here are four home improvements that can help you cut your summer energy costs and get Uncle Sam to pick up part of the tab:
Adding Insulation
Insulation is the cheapest home improvement that qualifies for the tax credits, says Karen Schneider, spokeswoman for Energy Star. And by installing it you could save up to 20% on your energy bills.
For the new insulation to qualify, it must meet the 2009 International Energy Conservation Code (check product labeling or call the manufacturer) and carry a two-year warranty (or be expected to last five years). Insulation at Home Depot and Lowe’s costs $10 (for a 32-foot roll) and $56 (for a 119-square foot roll), respectively.
If your home is less than five years old, you won't need new insulation, says Schneider. If your home is older, measure the thickness of the insulation in your attic. Insulation is measured in R-values, which stands for thermal resistance. It should range between R-30 and R-60 (for the northern parts of the country), she says. Every three to five R-values typically equal an inch of insulation, so R-30 could range between six and 10 inches, according to the Alliance to Save Energy. Also check the insulation in your crawl space or basement.
Click here for directions on installing insulation. Or hire a professional contractor, but installation won’t count toward the tax credit.
Purchasing New Windows and Doors
Before, tax credits for windows and doors were capped at $200. Now you can get up to $1,500. But that's only if those doors and windows meet certain criteria.
Windows, doors and skylights need a label from the National Fenestration Rating Council (NFRC) that says their U-factor – a measure of how well they’ll insulate the home from heat – is no more than 0.30. The label also needs to list a Solar Heat Gain Coefficient (SHGC), which measures how much of the sun’s heat penetrates into the home, of no more than 0.30.
Still, qualifying windows are expensive, with most ranging from $270 to $1,100, says Susan Roeder, spokeswoman for Andersen Windows and Doors, a window and door manufacturer based in Bayport, Minn. Doors can start at around $840 and go as high as $2,500.
Storm windows and doors can also qualify. The storm window's manufacturer certification statement lists the type of exterior windows, including single pane or clear glass, which it can be combined with to be eligible for the credit. Storm doors need to accompany a tax-credit-eligible wooden door without exceeding a combined U-factor of 0.30.
Installing Air Conditioners
Energy Star estimates the retail price and installation of a five-ton central air conditioner at more than $1,700. That’s hardly cheap, but luckily these systems only need to be replaced once every 10 to 12 years, says Schneider.
To qualify, central air conditioners need a Seasonal Energy Efficiency Ratio (SEER), which measures the efficiency of central air, of at least 16 and an Energy Efficiency Rating (EER), which tracks how it operates once the outdoor temperature reaches 95 degrees, of at least 13.
For a list of qualified A/Cs, click here.
Replacing the Roof
Assuming your roof is around 15 years old, replacing it with a metal or asphalt roof that meets Energy Star requirements will help keep your home cool by reflecting the sun’s heat -- especially if you live in a warm location, says Schneider.
This is a pricey project, however, running around $200 to $300 per square, says John New, a salesman at American Building Components, a manufacturer of metal roofing in Nicholasville, Ky. For a 25-square roof – a common size – it will cost $5,000 to $7,500.
But once you hit $5,000 you'll be eligible for the full $1,500 tax credit, says Schneider.
(Corrected April 28, 2009: As originally published, we stated the price of metal roofs using square feet. The correct measurement is in squares. One square equals 100 square feet.)
Minggu, 26 April 2009
10 Things the IRS Won't Tell You
by Jason KephartFriday, March 20, 2009provided by smartmoney.com
1. "Like it or not, you may need help with your taxes."
When Cindy Hockenberry and her husband sent in a tax-penalty payment in 2007, they knew there was a chance their math might not jibe with the IRS's. When that turned out to be true and the amount was much higher than expected, they decided to dispute it. Fortunately for them, Hockenberry's a pro. As tax research coordinator at the National Association of Tax Professionals, she spotted a glitch in the IRS's calculation; after visiting the local IRS office, the agency admitted its mistake and lowered the penalty. "There's no way the average taxpayer would have noticed," she says.
jibe = kki. bersesuaian, cocok (with dengan). The two stories do not j. Kedua cerita itu tidak cocok satu sama lain.
dispute = kb. perselisihan, percekcokan. -kkt. membantah. to d. with memperselisihkan, memperdebatkan.
spotted = berbintik
admit = kkt. (admitted) 1 mengakui.2 mengaku.3 menerima 4 memuat (dpt memberikan tempat) 5 mengenal. 6 berlaku utk.
As recently as 2000, less than half of all taxpayers were using a preparer. Today 80 percent use software or a tax pro, "because they're scared of making a mistake," says Nina Olson, the National Taxpayer Advocate. "That's a sign the system's too complex." A pro may not be necessary for basic returns that include just a W-2 and, say, mortgage interest; in those cases, TurboTax will do. However, if you've made a lot of market moves or run a side business, consider a preparer. (You can find one at www.natptax.com; expect to pay $150 to $200 per return.)
Form W2: Wage and Tax Statement
2. "You don't have to be rich to get audited."
The IRS's job is to enforce the tax laws enacted by Congress and to collect what's due. Its primary weapon? The audit, whose use has more than doubled since 2000, to surpass 1 percent of all returns, according to the Transactional Records Access Clearinghouse, a Syracuse University data-research organization. The increase can be attributed to the rising number of so-called correspondence audits -- those done through the mail asking for specific information rather than, say, investigating your whole return, says Susan Long, codirector of the organization. "It's more efficient."
enacted = kkt. 1 membuat, menjadikan. to e. a law menjadikan undang-undang, mengundangkan. 2 memainkan, memerankan. to e. a role (in a play, film) memainkan peranan.
surpass = kkt. melebihi, melampaui, mengungguli. to s. one expectations melebihi dari apa yang kita harapkan. -surpassing ks. jauh melebihi yang lain-lain.
attribute = kb. 1 sifat.2 perlengkapan, benda yg khusus berh. dng pangkat, kedudukan, lambang.-kkt. 1 mempertalikan. 2 menghubungkan.
One way to get the IRS's audit sensors tingling is to claim deductions much higher than are typical for your income level. We'd share them with you, but the IRS keeps that information under wraps. What's more clear: Big charitable donations have been getting a much closer look, says Bob Meighan, VP of TurboTax. "It's been an area of abuse for a while," he says. To protect yourself, get a receipt for any donation you plan on deducting. And keep those receipts for seven years -- unless it suspects you of outright fraud, that's how far back the IRS will go with an audit.
tingling = perasaan geli
wrap = kb. selendang. -kkt. (wrapped) 1 membungkus (a package). 2 membelitkan, melilitkan. wrapping paper kertas pembungkus. -wrappings kb., j. bahan pembungkus.
outright = ks. 1 yang sama sekali palsu. o. lie kebohongan yang sama sekali palsu. 2 secara ikhlas. o. gift hadiah secara ikhlas. -kk. sekaligus, seketika itu. to pay o. membayar seketika itu.
3. "Fear is often our best weapon."
The threat of an audit is enough to send many folks scurrying to their tax preparer, and no wonder. "With audits, you're assumed guilty until proven otherwise," says Long. It's this fear, coupled with the complexity of the system, that causes some to overpay their taxes by not taking deductions they're entitled to, according to experts. A study by the Government Accountability Office found that 2.2 million people a year overpay, by an average of $438. "Americans are leaving a lot of money on the table," says Roni Deutch, a Sacramento-based tax attorney.
threat = kb. ancaman. There's the t. of snow Ada ancaman (turunnya/jatuhnya) salju. t. on o's life ancaman akan dibunuh.
folk = kb. rakyat, bangsa. Inf.: folks j. 1 sanak saudara, pamili. 2 orang - orang. f. song lagu rakyat. f. tales dongeng-dongeng rakyat.
scurrying = berjalan cepat
entitled =yang diberi hak/judul
The GAO report listed mortgage interest, personal property tax, and state and local income tax as the main deductions not being taken. But there are more. Net market losses can be deducted up to $3,000, and if you lost more, you can roll it over into the next year. (Note: To claim a loss now, you need to have sold the stock last year.) You can also deduct things like tax-prep software, a résumé service and IRA fees if they total more than 2 percent of your adjusted gross income. Bottom line: "Take every legitimate tax break out there," says Kay Bell, a tax expert at Bankrate.com. "Just make sure you can justify it."
4. "The AMT is our ATM."
When the alternative minimum tax was introduced in 1969, it affected only a handful of taxpayers with high income and big deductions. But by 2010, it will hit 87 percent of married couples with income between $75,000 and $100,000. That's not what it was designed to do; the AMT was meant to force big earners with lots of deductions to pay their fair share. Now it "brings in a group of taxpayers the IRS has no problem with," says Olson. "The AMT has run its course." The problem is, the AMT hasn't been updated to account for inflation. Instead, Congress has been adjusting exemption criteria on a yearly basis. "It's just a Band-Aid," says Hockenberry.
The Band-Aid in this year's stimulus plan reduces the number of taxpayers subject to the AMT to 4.4 million -- it would've been 30 million, according to the Tax Policy Center. But if you're living in a high-tax state or married with two or more kids, you might find as you calculate both your regular return along with the AMT -- form 6251, which taxpayers are responsible for -- that you could be liable for the latter. Confused? The IRS offers AMT assistance at www.irs.gov; click on "Online Services."
5. "Just because we billed you doesn't mean you owe us money."
Receiving a CP2000, also known as a correspondence audit, sure sounds scary, but in most cases, you don't actually owe any more money. Not that the IRS will make that clear -- it's likely billing you because of a discrepancy on a certain deduction or reported income; then it's up to you to prove otherwise. But as the number of these audits have risen, up 176 percent since 2000, the chance for error goes up as well. The IRS says 98 percent of the audits it sends out require clarification, not payment, but Charlotte Ogorek, an Illinois-based enrolled agent, thinks it's more like 85 percent.
Even if the charge is unfounded, to appeal it could cost you anywhere from $500 to $4,000, depending on how long it takes, says Bill Wandel, a licensed taxpayer rep at JK Harris. If you plan to challenge a CP2000, contact your local taxpayer advocate from the IRS (go to www.irs.gov/advocate to find yours), who will provide advice and representation free. If it turns out you need even more expertise, contact a tax lawyer or an enrolled agent (a professional licensed by the IRS to represent taxpayers in front of the IRS). Find one at www.naea.org.
6. "If you don't pay, we'll sic a collection agency on you."
If you thought dealing with the IRS was bad, wait till you're past due on a payment and get turned over to one of the two private collection agencies the IRS taps to help collect its money. Since 2005, the IRS has been assigning delinquent taxpayer accounts to either Pioneer Credit Recovery or the CBE group of Iowa -- much like any other business or lender. "These are federal taxes," says Olson, the National Taxpayer Advocate. "The IRS should be collecting them." The retention of these private agencies costs $7.65 million annually, yet when the IRS works these cases instead, "it's three times more productive," Olson says. (A spokesperson for Pioneer Credit Recovery and CBE says the issue isn't who can do the work more efficiently; it's whether these taxes would be collected at all without the private collection agencies.)
If the IRS puts a private collection agency on your case, Olson says the first thing to do is to request that your case be turned back over to the IRS. The reason: IRS collectors have the authority to offer you a compromise settlement, something the private agencies aren't authorized to do.
7. "Want to go green? We'll help pay."
Tucked into last year's unprecedented $700 billion bailout plan was some pork that even a vegan could love. Congress not only added an extension of the eco-friendly Energy Policy Act of 2005, which was set to expire at the end of 2007, but it also sweetened the pot for homeowners looking to green up their homes.
Want to grab some energy from the sun? Starting in 2009, a number of energy-saving steps will garner tax breaks for green consumers. Installing a photovoltaic system for solar energy, for example, will net you a tax credit worth 30 percent of the total cost; at www.solar-estimate.org you can find out the price and potential savings of installing a system in your neighborhood. Or if you're gung-ho for wind energy, you'll get up to $4,000 or 30 percent of the cost of installing a small home windmill system to generate energy. Check out the National Renewable Energy Laboratory's "In My Backyard" tool at its Web site to see how much energy you can expect to get from a windmill. For homeowners who aren't looking to go quite that green, there will be a $500 onetime credit for installing energy-efficient windows, insulation or a central air system.
8. "April 15 isn't necessarily a hard deadline."
If you're one of the 112 million taxpayers who receive a refund every year rather than owing more, you have a lot more flexibility around the standard Apr. 15 deadline than you might think. Feeling rushed this year? By filling out IRS form 4868, which you can find online, you can buy yourself a no-questions-asked six-month extension on filing your taxes. And you can file the form requesting your extension as late as Apr. 15 without incurring any penalties. The only catch -- and it's significant for some: If you do owe any taxes, then you must still pay those by the 15th.
How do you know if you're going to owe taxes this year? If your life is basically the same year to year, then your refund is pretty much on autopilot, says Bell. But any big changes -- such as a large increase in salary, unexpected commission or year-end bonus, or having a child go from dependent to independent -- could potentially swing you into the loss column. So when in doubt, do the math in advance, or check with a tax pro to see if there's anything you should be worried about.
9. "We may be a government agency, but that doesn't mean your data's safe."
One things you may not be thinking about as you file your taxes this year is that the documents you're sending off to the IRS contain virtually every piece of information an identity thief would ever need to drive your credit, and your sanity, into the ground. And considering that data breaches are on the rise -- up 47 percent in 2008 from 2007, according to nonprofit Identity Theft Resource Center -- protecting your information, which includes your Social Security number and home address, should be paramount. But a recent report by the Treasury Inspector General for Tax Administration (TIGTA), an independent IRS oversight organization, casts some doubt on the agency's ability to protect your information. For example, TIGTA says two new systems the IRS is implementing to manage taxpayer accounts and account data were "deployed with known security vulnerabilities in the controls over sensitive data protection, disaster recovery and system access."
Alarming as this information is, it's hardly a new problem at the IRS, says J. Russell George, inspector general for TIGTA. "We've seen this before when they implement a new system. The organization's unwillingness to change its behavior is potentially harmful to taxpayers," he says. (The IRS had no comment.)
10. "We may still have your refund."
Waiting on a refund? Typically, it takes three to six weeks to get your money back from Uncle Sam, depending on whether you e-filed or sent your paper return through snail mail. Either way, the IRS does a pretty good job, by and large, of getting refund checks out to taxpayers in a timely manner. But the agency's record is hardly perfect: Every year a fraction of refunds -- belonging to more than 100,000 taxpayers, and with an average due of $988 -- never get to their destination.
What's the problem? According to the IRS, these undelivered refunds are mainly due to issues regarding the accuracy of a taxpayer's mailing address or direct-deposit information. For example, people move and don't leave a forwarding address, handwritten returns may be illegible, or the direct-deposit routing number may be off by a digit or two. If you haven't received your tax return in a reasonable amount of time, check out the IRS's "Where's My Refund?" tool on its Web site.
1. "Like it or not, you may need help with your taxes."
When Cindy Hockenberry and her husband sent in a tax-penalty payment in 2007, they knew there was a chance their math might not jibe with the IRS's. When that turned out to be true and the amount was much higher than expected, they decided to dispute it. Fortunately for them, Hockenberry's a pro. As tax research coordinator at the National Association of Tax Professionals, she spotted a glitch in the IRS's calculation; after visiting the local IRS office, the agency admitted its mistake and lowered the penalty. "There's no way the average taxpayer would have noticed," she says.
jibe = kki. bersesuaian, cocok (with dengan). The two stories do not j. Kedua cerita itu tidak cocok satu sama lain.
dispute = kb. perselisihan, percekcokan. -kkt. membantah. to d. with memperselisihkan, memperdebatkan.
spotted = berbintik
admit = kkt. (admitted) 1 mengakui.2 mengaku.3 menerima 4 memuat (dpt memberikan tempat) 5 mengenal. 6 berlaku utk.
As recently as 2000, less than half of all taxpayers were using a preparer. Today 80 percent use software or a tax pro, "because they're scared of making a mistake," says Nina Olson, the National Taxpayer Advocate. "That's a sign the system's too complex." A pro may not be necessary for basic returns that include just a W-2 and, say, mortgage interest; in those cases, TurboTax will do. However, if you've made a lot of market moves or run a side business, consider a preparer. (You can find one at www.natptax.com; expect to pay $150 to $200 per return.)
Form W2: Wage and Tax Statement
2. "You don't have to be rich to get audited."
The IRS's job is to enforce the tax laws enacted by Congress and to collect what's due. Its primary weapon? The audit, whose use has more than doubled since 2000, to surpass 1 percent of all returns, according to the Transactional Records Access Clearinghouse, a Syracuse University data-research organization. The increase can be attributed to the rising number of so-called correspondence audits -- those done through the mail asking for specific information rather than, say, investigating your whole return, says Susan Long, codirector of the organization. "It's more efficient."
enacted = kkt. 1 membuat, menjadikan. to e. a law menjadikan undang-undang, mengundangkan. 2 memainkan, memerankan. to e. a role (in a play, film) memainkan peranan.
surpass = kkt. melebihi, melampaui, mengungguli. to s. one expectations melebihi dari apa yang kita harapkan. -surpassing ks. jauh melebihi yang lain-lain.
attribute = kb. 1 sifat.2 perlengkapan, benda yg khusus berh. dng pangkat, kedudukan, lambang.-kkt. 1 mempertalikan. 2 menghubungkan.
One way to get the IRS's audit sensors tingling is to claim deductions much higher than are typical for your income level. We'd share them with you, but the IRS keeps that information under wraps. What's more clear: Big charitable donations have been getting a much closer look, says Bob Meighan, VP of TurboTax. "It's been an area of abuse for a while," he says. To protect yourself, get a receipt for any donation you plan on deducting. And keep those receipts for seven years -- unless it suspects you of outright fraud, that's how far back the IRS will go with an audit.
tingling = perasaan geli
wrap = kb. selendang. -kkt. (wrapped) 1 membungkus (a package). 2 membelitkan, melilitkan. wrapping paper kertas pembungkus. -wrappings kb., j. bahan pembungkus.
outright = ks. 1 yang sama sekali palsu. o. lie kebohongan yang sama sekali palsu. 2 secara ikhlas. o. gift hadiah secara ikhlas. -kk. sekaligus, seketika itu. to pay o. membayar seketika itu.
3. "Fear is often our best weapon."
The threat of an audit is enough to send many folks scurrying to their tax preparer, and no wonder. "With audits, you're assumed guilty until proven otherwise," says Long. It's this fear, coupled with the complexity of the system, that causes some to overpay their taxes by not taking deductions they're entitled to, according to experts. A study by the Government Accountability Office found that 2.2 million people a year overpay, by an average of $438. "Americans are leaving a lot of money on the table," says Roni Deutch, a Sacramento-based tax attorney.
threat = kb. ancaman. There's the t. of snow Ada ancaman (turunnya/jatuhnya) salju. t. on o's life ancaman akan dibunuh.
folk = kb. rakyat, bangsa. Inf.: folks j. 1 sanak saudara, pamili. 2 orang - orang. f. song lagu rakyat. f. tales dongeng-dongeng rakyat.
scurrying = berjalan cepat
entitled =yang diberi hak/judul
The GAO report listed mortgage interest, personal property tax, and state and local income tax as the main deductions not being taken. But there are more. Net market losses can be deducted up to $3,000, and if you lost more, you can roll it over into the next year. (Note: To claim a loss now, you need to have sold the stock last year.) You can also deduct things like tax-prep software, a résumé service and IRA fees if they total more than 2 percent of your adjusted gross income. Bottom line: "Take every legitimate tax break out there," says Kay Bell, a tax expert at Bankrate.com. "Just make sure you can justify it."
4. "The AMT is our ATM."
When the alternative minimum tax was introduced in 1969, it affected only a handful of taxpayers with high income and big deductions. But by 2010, it will hit 87 percent of married couples with income between $75,000 and $100,000. That's not what it was designed to do; the AMT was meant to force big earners with lots of deductions to pay their fair share. Now it "brings in a group of taxpayers the IRS has no problem with," says Olson. "The AMT has run its course." The problem is, the AMT hasn't been updated to account for inflation. Instead, Congress has been adjusting exemption criteria on a yearly basis. "It's just a Band-Aid," says Hockenberry.
The Band-Aid in this year's stimulus plan reduces the number of taxpayers subject to the AMT to 4.4 million -- it would've been 30 million, according to the Tax Policy Center. But if you're living in a high-tax state or married with two or more kids, you might find as you calculate both your regular return along with the AMT -- form 6251, which taxpayers are responsible for -- that you could be liable for the latter. Confused? The IRS offers AMT assistance at www.irs.gov; click on "Online Services."
5. "Just because we billed you doesn't mean you owe us money."
Receiving a CP2000, also known as a correspondence audit, sure sounds scary, but in most cases, you don't actually owe any more money. Not that the IRS will make that clear -- it's likely billing you because of a discrepancy on a certain deduction or reported income; then it's up to you to prove otherwise. But as the number of these audits have risen, up 176 percent since 2000, the chance for error goes up as well. The IRS says 98 percent of the audits it sends out require clarification, not payment, but Charlotte Ogorek, an Illinois-based enrolled agent, thinks it's more like 85 percent.
Even if the charge is unfounded, to appeal it could cost you anywhere from $500 to $4,000, depending on how long it takes, says Bill Wandel, a licensed taxpayer rep at JK Harris. If you plan to challenge a CP2000, contact your local taxpayer advocate from the IRS (go to www.irs.gov/advocate to find yours), who will provide advice and representation free. If it turns out you need even more expertise, contact a tax lawyer or an enrolled agent (a professional licensed by the IRS to represent taxpayers in front of the IRS). Find one at www.naea.org.
6. "If you don't pay, we'll sic a collection agency on you."
If you thought dealing with the IRS was bad, wait till you're past due on a payment and get turned over to one of the two private collection agencies the IRS taps to help collect its money. Since 2005, the IRS has been assigning delinquent taxpayer accounts to either Pioneer Credit Recovery or the CBE group of Iowa -- much like any other business or lender. "These are federal taxes," says Olson, the National Taxpayer Advocate. "The IRS should be collecting them." The retention of these private agencies costs $7.65 million annually, yet when the IRS works these cases instead, "it's three times more productive," Olson says. (A spokesperson for Pioneer Credit Recovery and CBE says the issue isn't who can do the work more efficiently; it's whether these taxes would be collected at all without the private collection agencies.)
If the IRS puts a private collection agency on your case, Olson says the first thing to do is to request that your case be turned back over to the IRS. The reason: IRS collectors have the authority to offer you a compromise settlement, something the private agencies aren't authorized to do.
7. "Want to go green? We'll help pay."
Tucked into last year's unprecedented $700 billion bailout plan was some pork that even a vegan could love. Congress not only added an extension of the eco-friendly Energy Policy Act of 2005, which was set to expire at the end of 2007, but it also sweetened the pot for homeowners looking to green up their homes.
Want to grab some energy from the sun? Starting in 2009, a number of energy-saving steps will garner tax breaks for green consumers. Installing a photovoltaic system for solar energy, for example, will net you a tax credit worth 30 percent of the total cost; at www.solar-estimate.org you can find out the price and potential savings of installing a system in your neighborhood. Or if you're gung-ho for wind energy, you'll get up to $4,000 or 30 percent of the cost of installing a small home windmill system to generate energy. Check out the National Renewable Energy Laboratory's "In My Backyard" tool at its Web site to see how much energy you can expect to get from a windmill. For homeowners who aren't looking to go quite that green, there will be a $500 onetime credit for installing energy-efficient windows, insulation or a central air system.
8. "April 15 isn't necessarily a hard deadline."
If you're one of the 112 million taxpayers who receive a refund every year rather than owing more, you have a lot more flexibility around the standard Apr. 15 deadline than you might think. Feeling rushed this year? By filling out IRS form 4868, which you can find online, you can buy yourself a no-questions-asked six-month extension on filing your taxes. And you can file the form requesting your extension as late as Apr. 15 without incurring any penalties. The only catch -- and it's significant for some: If you do owe any taxes, then you must still pay those by the 15th.
How do you know if you're going to owe taxes this year? If your life is basically the same year to year, then your refund is pretty much on autopilot, says Bell. But any big changes -- such as a large increase in salary, unexpected commission or year-end bonus, or having a child go from dependent to independent -- could potentially swing you into the loss column. So when in doubt, do the math in advance, or check with a tax pro to see if there's anything you should be worried about.
9. "We may be a government agency, but that doesn't mean your data's safe."
One things you may not be thinking about as you file your taxes this year is that the documents you're sending off to the IRS contain virtually every piece of information an identity thief would ever need to drive your credit, and your sanity, into the ground. And considering that data breaches are on the rise -- up 47 percent in 2008 from 2007, according to nonprofit Identity Theft Resource Center -- protecting your information, which includes your Social Security number and home address, should be paramount. But a recent report by the Treasury Inspector General for Tax Administration (TIGTA), an independent IRS oversight organization, casts some doubt on the agency's ability to protect your information. For example, TIGTA says two new systems the IRS is implementing to manage taxpayer accounts and account data were "deployed with known security vulnerabilities in the controls over sensitive data protection, disaster recovery and system access."
Alarming as this information is, it's hardly a new problem at the IRS, says J. Russell George, inspector general for TIGTA. "We've seen this before when they implement a new system. The organization's unwillingness to change its behavior is potentially harmful to taxpayers," he says. (The IRS had no comment.)
10. "We may still have your refund."
Waiting on a refund? Typically, it takes three to six weeks to get your money back from Uncle Sam, depending on whether you e-filed or sent your paper return through snail mail. Either way, the IRS does a pretty good job, by and large, of getting refund checks out to taxpayers in a timely manner. But the agency's record is hardly perfect: Every year a fraction of refunds -- belonging to more than 100,000 taxpayers, and with an average due of $988 -- never get to their destination.
What's the problem? According to the IRS, these undelivered refunds are mainly due to issues regarding the accuracy of a taxpayer's mailing address or direct-deposit information. For example, people move and don't leave a forwarding address, handwritten returns may be illegible, or the direct-deposit routing number may be off by a digit or two. If you haven't received your tax return in a reasonable amount of time, check out the IRS's "Where's My Refund?" tool on its Web site.
Rabu, 22 April 2009
Big Brother and Your Taxes
by Ben Stein
Posted on Monday, April 20, 2009, 12:00AM
Here is a scary story for you.
Recently a friend of mine, who lives in a city in Northern California, called me, extremely upset. She said she had just received a letter from the California Franchise Tax Board, the ruthless entity that collects taxes in sunny California.
Franchise = kb. 1 (voting) hak suara. 2 hak, monopoli.
upset = 1 menggangu, merusak (nerves, plans). 2 menumbangkan (a dish or pan). 3 Sport: mengalahkan. 4 mengacaukan.
ruthless = ks. zalim, kejam, bengis.
sunny = 1 cerah (of a day). 2 gembira, riang (disposition). 3 yang mendapat banyak cahaya matahari (of a room).
The letter referenced her 2006 taxes, asking her how she had the means to buy a certain very expensive car she owns. She was asked to document how she had the money for it and why they saw no sign of that income on her 2006 return.
reference = kb. 1 surat keterangan, rekomdasi. 2 referansi.
return = kb. 1 kembalinya. 2 hasil. 3 keuntungan, laba (for o's money on o's investment). 4 kedatangan kembali, pemulangan. 5 (tax) formulir pajak penghasilan. -ks. kembali. -kkt. 1 mengembalikan (a book, compliment). 2 membalas (s.o's love).
The fact is that the woman in question was in a serious car accident in late 2005. Her prior car was totaled. So she got a lump sum insurance payment of about $30,000. Rather imprudently, she used that money as the down payment on an extremely pricey car -- the sort of car she really does not have enough income to afford.
imprudently = dengan tidak bijaksana
pricey = mahal
afford = kkt.1 menghasilkan,memberi-(kan).2 kuat, mampu.3 boleh.4 mengadakan, membuka, memberi.
That's her problem, and she will deal with it.
The scary part is that the California Franchise Tax Board knew what kind of car she bought and how much she paid for it, and they could and did compare those numbers with her earlier years' income.
The Servant Becomes the Master
This shows that information by taxing authorities has gone way past where it should be. The whole incident reminded me of the beginning of ‘Terminator', when we learn that, at a certain stage, machines become self-conscious and have the will to take over the earth. The servant becomes the master. And since the master is a machine, it has no feelings other than the will to control.
conscious = ks. 1 sadar. He was c. after his fall Dia sadar sesudah ia jatuh. 2 disengaja. to tell a c. lie berdusta dengan sengaja.
If the taxing authority knows what kind of car a taxpayer has and how much it cost to buy, what's next? Can the state match up our credit card purchases with our social security numbers and then keep a total of how much we have spent in 2009? Can the IRS or the Franchise Tax Board then have a program that figures that if we spent X, especially on Y and Z items, then we must have had an income of A? Can it then send us a letter demanding to know why we did not pay tax on amount A?
figure = kb. 1 bentuk badan. 2 bilangan, angka. 3 jumlah, bilangan. 4 tokoh. 5 gambar. 6 harga. -figures j. ilmu hitung. -kkt. 1 menghitung, menjumlahkan. 2membayangkan. -kki. 1 berhitung. 2 Inf.: kira. 3 terdapat, tertera. -figured ks. bergambar.
More frightening, the taxing authority can slap liens on taxpayers, and sometimes the taxpayers don't learn about it until later. Can the IRS or the state authority compute what their machines "think" we owe, and then simply debit that amount from our bank or brokerage accounts? If there is not enough there to pay what they figure we owe, can they put liens on our homes and garnish our wages?
frightening = menakutkan
slap = kb. tamparan, tempeleng. -kkt. (lapped) 1 menampar (s.o.). 2 menjatuhkan (a fine on s.o.). 3 membantingkan (food on a table). to s.around memukuli. to s. down menampik. slap-happy ks. puyeng, suka pening, miring otak.
lien = kb. hak gadai. because of the l. on it karena telah digadaikan.
garnish = kb. hiasan (for food). -kkt. menghias.
If the IRS really gets rolling, can they get an instantaneous, automated look at our checking accounts? Can they compute what the machines think we owe by the checks plus the credit cards, and then attach our wages or our bank accounts until we pay?
rolling = kb. (meng)gelinding(nya) (of a ball). ks. 1 berbukit-bukit (country). 2 berombak-ombak, melandai (fields). 3 yang berombak (besar) (sea).
Soulless Machines
Our government, to some people, appears to be a fair-minded, careful body. And many bureaucrats do fit that description, although many do not. But what happens when soulless machines take over the tasks of tax gathering?
Soulless = tanpa jiwa
appear = kki 1 kelihatan. 2 menghadap. 3 muncul 4 terbit. 5 bermain. 6 nampak, tampak, kelihatan. 7 tampil, muncul.
careful = ks. (ber-)hati-hati. -carefully kk. 1 dengan hati-hati. 2 dengan teliti.
fit = kb. 1 serangan tiba-tiba. 2 pas. -ks. 1 pantas, patut, layak. 2 sehat. 3 dapat, siap. 4 baik. -kk. to see f. memutuskan. -kkt. (fit atau fitted) 1 cocok dengan. 2 mencocokkan / menyusun kembali. 3 menjadikan. fitings kb., j. benda-benda, perabot.
gathering = pengumpulan
Then we humans have to gather our records and try to fight back as well as we can. How long until we go into an audit and don't even talk to a human being but instead have a machine scan our documents and then instantaneously give us an answer?
The answer, of course, will always be "pay up."
At present, only the top echelons of wage earners pay any meaningful amount of tax. But once the collection process is fully computerized, what is to stop the IRS or the states from collecting at least a few ounces of flesh from everyone?
ounce = kb. ons. to sell by the o. menjual per ons.
flesh = kb. daging. to put on f. bertambah gemuk. -kkt. to f. out meluaskan, menyempurnakan. -flesh-colored ks. berwarna seperti daging. flesh-eating ks. yang makan daging. f. wound luka enteng.
The future liabilities of the government -- thanks to wild overspending by both the Democrats and Republicans -- are almost incomprehensibly large. The needs of the states are critical right now. What is to stop the politicians from making machines our oppressors to squeeze out every dime they can from us?
oppressors = penindas
squeeze = kb. 1 tekanan. 2 tiruan. 3 pemerasan. -kkt. 1 memeras (money from s.o., fruit). 2 memencetr, meremas (a kitten). 3 menyelipkan. 4 memeluk, mendekap (a child in o's arms). -kki. diperas.
dime = kb. sepicis, uang picisan. a d. a dozen banyak dan mudah didapat. d. store toko murah yang menjual barang dengan harga beberapa sen keatas.
A Plea for Privacy
And what about some minimal amount of privacy? I am happy to pay my taxes. I like the fact that some of what I pay goes to the military and police and firefighters. But I don't want the government to know all the details of my life, which is what they are clearly on the way to knowing.
Plea = kb. 1 permohonan, permintaan. 2 Law : pembelaan, dalih.
For years now, I have been hearing that we need a very large sales tax instead of an income tax, and I have pooh-poohed the idea as being too regressive. But now that I see where the income tax system is going, I am eager for a fresh look at a national sales tax, which would stop the government from prying into our lives.
pooh = kseru. cih, bah. -kkt. pooh-pooh tak mengindahkan.
eager = ks. ingin sekali, hasrat. to be e. to go ingin sekali pergi. Inf.: e beaver orang yang rajin sekali. -eagerly kk. dengan tak sabar, dengan keinginan yang amat besar.
prying = kkt. (pried) membongkar, membuka dengan keras, mengumpil (top off a box). -kki. to p. into 1 mencampur-campuri (other's affairs). 2 menyelidiki (a matter). 3 pengintip, mengintai.
Taxes are a basic part of life, and we all have to pay our fair share. But Big Brother is a lot closer than we think, via the tax system, and I don't like that one bit.
closer = semakin dekat
bit = kb. 1 kekang, gurdi. 2 sedikit. 3 agak. 4 lih BITE. b. by b. sedikit demi sedikit. not a b. sedikitpun tidak. bits and pieces potong-potong, kepingan.
Posted on Monday, April 20, 2009, 12:00AM
Here is a scary story for you.
Recently a friend of mine, who lives in a city in Northern California, called me, extremely upset. She said she had just received a letter from the California Franchise Tax Board, the ruthless entity that collects taxes in sunny California.
Franchise = kb. 1 (voting) hak suara. 2 hak, monopoli.
upset = 1 menggangu, merusak (nerves, plans). 2 menumbangkan (a dish or pan). 3 Sport: mengalahkan. 4 mengacaukan.
ruthless = ks. zalim, kejam, bengis.
sunny = 1 cerah (of a day). 2 gembira, riang (disposition). 3 yang mendapat banyak cahaya matahari (of a room).
The letter referenced her 2006 taxes, asking her how she had the means to buy a certain very expensive car she owns. She was asked to document how she had the money for it and why they saw no sign of that income on her 2006 return.
reference = kb. 1 surat keterangan, rekomdasi. 2 referansi.
return = kb. 1 kembalinya. 2 hasil. 3 keuntungan, laba (for o's money on o's investment). 4 kedatangan kembali, pemulangan. 5 (tax) formulir pajak penghasilan. -ks. kembali. -kkt. 1 mengembalikan (a book, compliment). 2 membalas (s.o's love).
The fact is that the woman in question was in a serious car accident in late 2005. Her prior car was totaled. So she got a lump sum insurance payment of about $30,000. Rather imprudently, she used that money as the down payment on an extremely pricey car -- the sort of car she really does not have enough income to afford.
imprudently = dengan tidak bijaksana
pricey = mahal
afford = kkt.1 menghasilkan,memberi-(kan).2 kuat, mampu.3 boleh.4 mengadakan, membuka, memberi.
That's her problem, and she will deal with it.
The scary part is that the California Franchise Tax Board knew what kind of car she bought and how much she paid for it, and they could and did compare those numbers with her earlier years' income.
The Servant Becomes the Master
This shows that information by taxing authorities has gone way past where it should be. The whole incident reminded me of the beginning of ‘Terminator', when we learn that, at a certain stage, machines become self-conscious and have the will to take over the earth. The servant becomes the master. And since the master is a machine, it has no feelings other than the will to control.
conscious = ks. 1 sadar. He was c. after his fall Dia sadar sesudah ia jatuh. 2 disengaja. to tell a c. lie berdusta dengan sengaja.
If the taxing authority knows what kind of car a taxpayer has and how much it cost to buy, what's next? Can the state match up our credit card purchases with our social security numbers and then keep a total of how much we have spent in 2009? Can the IRS or the Franchise Tax Board then have a program that figures that if we spent X, especially on Y and Z items, then we must have had an income of A? Can it then send us a letter demanding to know why we did not pay tax on amount A?
figure = kb. 1 bentuk badan. 2 bilangan, angka. 3 jumlah, bilangan. 4 tokoh. 5 gambar. 6 harga. -figures j. ilmu hitung. -kkt. 1 menghitung, menjumlahkan. 2membayangkan. -kki. 1 berhitung. 2 Inf.: kira. 3 terdapat, tertera. -figured ks. bergambar.
More frightening, the taxing authority can slap liens on taxpayers, and sometimes the taxpayers don't learn about it until later. Can the IRS or the state authority compute what their machines "think" we owe, and then simply debit that amount from our bank or brokerage accounts? If there is not enough there to pay what they figure we owe, can they put liens on our homes and garnish our wages?
frightening = menakutkan
slap = kb. tamparan, tempeleng. -kkt. (lapped) 1 menampar (s.o.). 2 menjatuhkan (a fine on s.o.). 3 membantingkan (food on a table). to s.around memukuli. to s. down menampik. slap-happy ks. puyeng, suka pening, miring otak.
lien = kb. hak gadai. because of the l. on it karena telah digadaikan.
garnish = kb. hiasan (for food). -kkt. menghias.
If the IRS really gets rolling, can they get an instantaneous, automated look at our checking accounts? Can they compute what the machines think we owe by the checks plus the credit cards, and then attach our wages or our bank accounts until we pay?
rolling = kb. (meng)gelinding(nya) (of a ball). ks. 1 berbukit-bukit (country). 2 berombak-ombak, melandai (fields). 3 yang berombak (besar) (sea).
Soulless Machines
Our government, to some people, appears to be a fair-minded, careful body. And many bureaucrats do fit that description, although many do not. But what happens when soulless machines take over the tasks of tax gathering?
Soulless = tanpa jiwa
appear = kki 1 kelihatan. 2 menghadap. 3 muncul 4 terbit. 5 bermain. 6 nampak, tampak, kelihatan. 7 tampil, muncul.
careful = ks. (ber-)hati-hati. -carefully kk. 1 dengan hati-hati. 2 dengan teliti.
fit = kb. 1 serangan tiba-tiba. 2 pas. -ks. 1 pantas, patut, layak. 2 sehat. 3 dapat, siap. 4 baik. -kk. to see f. memutuskan. -kkt. (fit atau fitted) 1 cocok dengan. 2 mencocokkan / menyusun kembali. 3 menjadikan. fitings kb., j. benda-benda, perabot.
gathering = pengumpulan
Then we humans have to gather our records and try to fight back as well as we can. How long until we go into an audit and don't even talk to a human being but instead have a machine scan our documents and then instantaneously give us an answer?
The answer, of course, will always be "pay up."
At present, only the top echelons of wage earners pay any meaningful amount of tax. But once the collection process is fully computerized, what is to stop the IRS or the states from collecting at least a few ounces of flesh from everyone?
ounce = kb. ons. to sell by the o. menjual per ons.
flesh = kb. daging. to put on f. bertambah gemuk. -kkt. to f. out meluaskan, menyempurnakan. -flesh-colored ks. berwarna seperti daging. flesh-eating ks. yang makan daging. f. wound luka enteng.
The future liabilities of the government -- thanks to wild overspending by both the Democrats and Republicans -- are almost incomprehensibly large. The needs of the states are critical right now. What is to stop the politicians from making machines our oppressors to squeeze out every dime they can from us?
oppressors = penindas
squeeze = kb. 1 tekanan. 2 tiruan. 3 pemerasan. -kkt. 1 memeras (money from s.o., fruit). 2 memencetr, meremas (a kitten). 3 menyelipkan. 4 memeluk, mendekap (a child in o's arms). -kki. diperas.
dime = kb. sepicis, uang picisan. a d. a dozen banyak dan mudah didapat. d. store toko murah yang menjual barang dengan harga beberapa sen keatas.
A Plea for Privacy
And what about some minimal amount of privacy? I am happy to pay my taxes. I like the fact that some of what I pay goes to the military and police and firefighters. But I don't want the government to know all the details of my life, which is what they are clearly on the way to knowing.
Plea = kb. 1 permohonan, permintaan. 2 Law : pembelaan, dalih.
For years now, I have been hearing that we need a very large sales tax instead of an income tax, and I have pooh-poohed the idea as being too regressive. But now that I see where the income tax system is going, I am eager for a fresh look at a national sales tax, which would stop the government from prying into our lives.
pooh = kseru. cih, bah. -kkt. pooh-pooh tak mengindahkan.
eager = ks. ingin sekali, hasrat. to be e. to go ingin sekali pergi. Inf.: e beaver orang yang rajin sekali. -eagerly kk. dengan tak sabar, dengan keinginan yang amat besar.
prying = kkt. (pried) membongkar, membuka dengan keras, mengumpil (top off a box). -kki. to p. into 1 mencampur-campuri (other's affairs). 2 menyelidiki (a matter). 3 pengintip, mengintai.
Taxes are a basic part of life, and we all have to pay our fair share. But Big Brother is a lot closer than we think, via the tax system, and I don't like that one bit.
closer = semakin dekat
bit = kb. 1 kekang, gurdi. 2 sedikit. 3 agak. 4 lih BITE. b. by b. sedikit demi sedikit. not a b. sedikitpun tidak. bits and pieces potong-potong, kepingan.
Kamis, 16 April 2009
Top Tax Tips for Younger Filers
by Anya Kamenetz
Posted on Wednesday, March 12, 2008, 12:00AM
Filing your taxes is kind of like going to the dentist: It may not be fun, but dealing with it is part of being a grownup. So with Tax Day one short month away, I turned to an expert for advice aimed especially at us younger and newer filers. Kay Bell is a Texas-based journalist who has covered tax tips for Bankrate.com since 1999 (check out their 2008 tax guide here).
She also writes one of the most readable and entertaining tax blogs on the Web: Don't Mess With Taxes.
readable = menarik
Here are Kay's and my top tax tips for GenDebt.
1.) Take the easy way out.
Put your technology skills to work. Online filing can be fast and cheap -- even free. "Tax prep software has gotten better every year," says Bell. If you make less than $54,000 per year, you can use the IRS Free File site directly.
Or you can try the free version of the TaxACT program.
You might also be able to get a free version of TurboTax or H&R Block's Tax Cut software. Check with your bank or financial institution to see if they have any deals.
2.) But not too EZ.
Bell says one of the biggest mistakes young filers make is going straight for the one-page 1040EZ form.
"A lot of young people might have student loans, and they can deduct the interest, but not on the 1040EZ," she says. "They need to use a 1040A or the long 1040."
3.) Be a savvy student.
About that student loan interest deduction: Those who earn less than $65,000 a year can take up to $2,500 off their adjusted gross income for the interest (not the principal) paid annually on student loans. This counts for both federal and private student loans. If you're still enrolled in a qualified higher education institution, you can also claim a HOPE tax credit for up to $1,650 for your tuition and fees.
Importantly, Bell notes, these are "above-the-line" deductions, meaning you don't have to itemize them (break them down, rather than taking the standard deduction) to claim them.
savvy = cerdas
4.) Adjusting to the working world? Adjust your income.
Another surprising above-the-line deduction: the expenses for your first big move and first job.
"Let's say you got out of college at Ohio State, and you're moving to take a job offer down in Atlanta," says Bell. "Be sure to keep a record of your U-Haul and moving expenses." All of this can be written off on the 1040 Long Form only.
After your first job, you can deduct job-hunting expenses like resume prep when you look for another position in the same field, but you have to itemize to take these deductions.
5.) Online tools can help the self-employed.
Lots of younger workers are starting out as freelance, permalance, or independent contractors. If you're getting paid on a 1099 instead of a W-2, you need to fill out a Schedule C form to itemize your business expenses.
Here, take your time and be thorough. For example, don't forget home-office expenses -- you can deduct a proportion of your rent, Internet, and utilities if you work from home (although your work area should be exclusively delineated and reserved for work).
thorough = seksama
delineated = digambarkan
Also, you can deduct your premiums if you buy your own health insurance -- which you should!
Online tools can help you keep organized when it comes to all of these deductions, which is extremely important. "People end up cheating themselves," says Bell. "They have a lot of expenses and they're not remembering them, and it's awful hard to reconstruct things."
cheating = menipu
awful = kejam
As a freelance writer, I've been dealing with this since I first filed taxes. This year, I went through my online GCalendar month by month to remember all the dates where I incurred business-related travel or entertainment expenses (e.g., lunch with an interview subject). My Amazon account showed what books I'd bought for research, and my cell phone bills served as a log, allowing me to figure out the percentage of calls that were made to business-related numbers.
incurred = yang terjadi
log = mencatatkan dalam buku harian.
Kay also suggests using online mapping tools to reconstruct your mileage if you drove anywhere for work. Of course, you should be able to back up every deduction with a receipt.
Another important thing to remember: If you are a freelancer and taxes are not being taken out of your paychecks, you must file estimated tax payments each quarter. If not, "you're technically in violation of tax law," says Bell. Eep.
In online tool that can help you with this task is the Electronic Federal Tax Payment System.
6.) Get the maximum benefit out of your benefits.
If you read this column, you already know the long-term reasons to fund your tax-sheltered retirement account. If it's a Roth IRA or Roth 401(k), you still have to pay taxes on your contributions (with the advantage of taking the money out tax-free when you retire). But if your employer offers a regular 401(k), those contributions will reduce your tax liability.
Another employer-provided tax benefit that Bell says people often overlook is a flexible spending account for medical expenses. Put, say, $500 into it for your co-pays and dental deductibles -- even over-the-counter medications -- and you can take that amount off your taxable income.
sheltered = yang dinaungi
7.) Know when to get extra help.
There are certain times when younger filers should seek help from a human being, whether at a storefront chain like H&R Block or Jackson Hewitt, or with a qualified CPA. You may want to do this if you've started your own business, sold some property, or have a large amount of investments, all things that will make your tax filing more complicated. Or, says Bell, "if you're just too danged busy and you're going to be rushed. You never want to get in a rush when you're doing your taxes."
8.) Beware the refund.
Everyone knows that a fat refund is your reward for going through the mind-numbing process of tax filing, right? Well, think again. A "refund" just means you let the government hold on to too much of your income all year, like giving them an interest-free loan.
"If you find you're getting a large refund, go to your human resources office and fill out a new W-4," says Bell. "You want to have just as close to what you're going to owe taken out as possible."
Another refund pitfall: If you walk into a tax-prep chain, watch out for any refund anticipation loans they offer. They'll cost you a bundle in the long run.
Beware = hati2
bundle = berkas
9.) Get your stimulus payment.
Finally, this year there's yet another cash incentive to file -- your economic stimulus payment of $300 to $600, scheduled to go out in May and based on your 2007 return. The IRS is encouraging even those whose incomes are too low to need to file to go ahead and do it this year.
While the $150 billion stimulus package is supposed to get Americans to go out and spend their refunds, a better option for many members of Generation Debt is to -- yes -- pay off debt or invest the money.
encouraging = menganjurkan,
Top Tax Tips for Younger Filers
Posted on Wednesday, March 12, 2008, 12:00AM
Filing your taxes is kind of like going to the dentist: It may not be fun, but dealing with it is part of being a grownup. So with Tax Day one short month away, I turned to an expert for advice aimed especially at us younger and newer filers. Kay Bell is a Texas-based journalist who has covered tax tips for Bankrate.com since 1999 (check out their 2008 tax guide here).
She also writes one of the most readable and entertaining tax blogs on the Web: Don't Mess With Taxes.
readable = menarik
Here are Kay's and my top tax tips for GenDebt.
1.) Take the easy way out.
Put your technology skills to work. Online filing can be fast and cheap -- even free. "Tax prep software has gotten better every year," says Bell. If you make less than $54,000 per year, you can use the IRS Free File site directly.
Or you can try the free version of the TaxACT program.
You might also be able to get a free version of TurboTax or H&R Block's Tax Cut software. Check with your bank or financial institution to see if they have any deals.
2.) But not too EZ.
Bell says one of the biggest mistakes young filers make is going straight for the one-page 1040EZ form.
"A lot of young people might have student loans, and they can deduct the interest, but not on the 1040EZ," she says. "They need to use a 1040A or the long 1040."
3.) Be a savvy student.
About that student loan interest deduction: Those who earn less than $65,000 a year can take up to $2,500 off their adjusted gross income for the interest (not the principal) paid annually on student loans. This counts for both federal and private student loans. If you're still enrolled in a qualified higher education institution, you can also claim a HOPE tax credit for up to $1,650 for your tuition and fees.
Importantly, Bell notes, these are "above-the-line" deductions, meaning you don't have to itemize them (break them down, rather than taking the standard deduction) to claim them.
savvy = cerdas
4.) Adjusting to the working world? Adjust your income.
Another surprising above-the-line deduction: the expenses for your first big move and first job.
"Let's say you got out of college at Ohio State, and you're moving to take a job offer down in Atlanta," says Bell. "Be sure to keep a record of your U-Haul and moving expenses." All of this can be written off on the 1040 Long Form only.
After your first job, you can deduct job-hunting expenses like resume prep when you look for another position in the same field, but you have to itemize to take these deductions.
5.) Online tools can help the self-employed.
Lots of younger workers are starting out as freelance, permalance, or independent contractors. If you're getting paid on a 1099 instead of a W-2, you need to fill out a Schedule C form to itemize your business expenses.
Here, take your time and be thorough. For example, don't forget home-office expenses -- you can deduct a proportion of your rent, Internet, and utilities if you work from home (although your work area should be exclusively delineated and reserved for work).
thorough = seksama
delineated = digambarkan
Also, you can deduct your premiums if you buy your own health insurance -- which you should!
Online tools can help you keep organized when it comes to all of these deductions, which is extremely important. "People end up cheating themselves," says Bell. "They have a lot of expenses and they're not remembering them, and it's awful hard to reconstruct things."
cheating = menipu
awful = kejam
As a freelance writer, I've been dealing with this since I first filed taxes. This year, I went through my online GCalendar month by month to remember all the dates where I incurred business-related travel or entertainment expenses (e.g., lunch with an interview subject). My Amazon account showed what books I'd bought for research, and my cell phone bills served as a log, allowing me to figure out the percentage of calls that were made to business-related numbers.
incurred = yang terjadi
log = mencatatkan dalam buku harian.
Kay also suggests using online mapping tools to reconstruct your mileage if you drove anywhere for work. Of course, you should be able to back up every deduction with a receipt.
Another important thing to remember: If you are a freelancer and taxes are not being taken out of your paychecks, you must file estimated tax payments each quarter. If not, "you're technically in violation of tax law," says Bell. Eep.
In online tool that can help you with this task is the Electronic Federal Tax Payment System.
6.) Get the maximum benefit out of your benefits.
If you read this column, you already know the long-term reasons to fund your tax-sheltered retirement account. If it's a Roth IRA or Roth 401(k), you still have to pay taxes on your contributions (with the advantage of taking the money out tax-free when you retire). But if your employer offers a regular 401(k), those contributions will reduce your tax liability.
Another employer-provided tax benefit that Bell says people often overlook is a flexible spending account for medical expenses. Put, say, $500 into it for your co-pays and dental deductibles -- even over-the-counter medications -- and you can take that amount off your taxable income.
sheltered = yang dinaungi
7.) Know when to get extra help.
There are certain times when younger filers should seek help from a human being, whether at a storefront chain like H&R Block or Jackson Hewitt, or with a qualified CPA. You may want to do this if you've started your own business, sold some property, or have a large amount of investments, all things that will make your tax filing more complicated. Or, says Bell, "if you're just too danged busy and you're going to be rushed. You never want to get in a rush when you're doing your taxes."
8.) Beware the refund.
Everyone knows that a fat refund is your reward for going through the mind-numbing process of tax filing, right? Well, think again. A "refund" just means you let the government hold on to too much of your income all year, like giving them an interest-free loan.
"If you find you're getting a large refund, go to your human resources office and fill out a new W-4," says Bell. "You want to have just as close to what you're going to owe taken out as possible."
Another refund pitfall: If you walk into a tax-prep chain, watch out for any refund anticipation loans they offer. They'll cost you a bundle in the long run.
Beware = hati2
bundle = berkas
9.) Get your stimulus payment.
Finally, this year there's yet another cash incentive to file -- your economic stimulus payment of $300 to $600, scheduled to go out in May and based on your 2007 return. The IRS is encouraging even those whose incomes are too low to need to file to go ahead and do it this year.
While the $150 billion stimulus package is supposed to get Americans to go out and spend their refunds, a better option for many members of Generation Debt is to -- yes -- pay off debt or invest the money.
encouraging = menganjurkan,
Top Tax Tips for Younger Filers
Kamis, 26 Februari 2009
Overlooked Tax Deductions for Last-Minute Filers
Posted on Wednesday, April 2, 2008, 12:00AM
At this time of year, many people fear not finishing their tax returns on time, or getting hit with a big bill they can't cover. My worry is the tax code itself -- the thing is so big, so complex, with such a random assortment of deductions and credits, that I'm sure I'm missing something.
Overlooked = yang dilewatkan
assortment = bermacam-macam / sortiran
For instance, when my husband and I switched accountants a few years ago, the new one asked if we put money away for college. I told her we contributed to 529 college savings accounts in New York. She told me our previous accountant hadn't taken the state tax deduction we were entitled to on our prior-year return.
entitled = yang diberi hak/judul
Tax Yourself on Deductions
The roughly one-third of Americans who itemize their returns typically know about the big deductions -- mortgage interest, charitable giving, qualified retirement-related contributions. But there are a whole host of other categories that many people overlook.
roughly = dengan kasar
I use a professional for fear that I'm not maximizing my deductions (and the fact that my husband and I both run our own businesses), and an estimated 40 million people rely on tax software. If you don't use either -- or if your tax preparer makes minimal inquiries about your finances -- here are some questions to ask yourself so you don't miss opportunities to reduce your 2007 tax bill:
• Did you refinance your mortgage last year?
Any "points" you paid to reduce your mortgage interest rate are deductible, along with your mortgage interest. Did you pay a prepayment penalty to get out of your old mortgage? That may be deductible as well.
If you purchased a new home, don't forget to look at your closing statement and deduct the real estate taxes paid at closing and any points on your mortgage.
• Did you have a major medical problem in 2007?
The IRS allows you to deduct medical expenses that surpass 7.5 percent of your adjusted gross income. That sounds like a lot -- someone making $60,000 could deduct any expenses beyond $4,500. But the IRS has an extensive list of what qualifies as medical expenses.
Health insurance premiums you pay out of pocket, co-pays, prescriptions, and lodging for medical purposes (up to $50 per person) are all deductible, as are therapies to stop smoking. In addition, if you had to drive to the doctor's office, an X-ray facility, physical therapy, or a medical supply store to pick up crutches or a wheelchair, you can deduct the miles you drove, parking, tolls, and the like. Even a portion of your insurance premiums for long-term care can be deducted.
prescriptions = resep obat
lodging = penginapan
pick up = mengambil
crutch = kb. tongkat ketiak. 2 penolong. 3 penyokong, penopang.
• Do you work at home, and have an office that's exclusively devoted to work?
If so, you can deduct a percentage of your rent or mortgage, utilities, homeowner's insurance, and maintenance for the room. Just make sure it's your primary office, and doesn't double as a guest suite on weekends, says New York CPA Eliot Lebenhart.
devote = kkt. 1 mencurahkan. 2 bertekun. 3 menyediakan. to be devoted to sayang akan adiknya yang perempuan.
"You have to have the production of your income take place there," Lebenhart explains. "I do a lot of work in the entertainment businesses, and I don't deduct it because my clients are usually just doing record-keeping there, they're not performing or modeling in the home." Also, if your employer provides a space for you at work and the home office is merely for convenience, don't take the deduction, he says.
Lebenhart says states are becoming aggressive about auditing on home offices so they don't miss out on revenue. New York managed to collect income tax from an employee who worked and lived in Tennessee (he telecommuted and was only in his New York office 30 days during the year). It also collected state income tax from a college professor who taught a day or two in the state but otherwise worked at home in Connecticut.
taught = yang diajar
• Did you pay any bills related to education for yourself or dependents?
You can deduct up to $2,500 of the interest on a student loan. Depending on your income, you can take advantage of the Hope Credit for qualified expenses for the first two years of undergraduate education or the Lifetime Learning Credit from sophomore year through graduate school. (You can't claim both simultaneously.)
Your state may offer additional tax benefits related to educational expenses.
• Did you pay for child care for a kid under age 13 while you worked full-time?
You can deduct expenses up to $3,000 related to a babysitter, day care center (including after-care services at your child's school), and summer day camp.
• Did you buy a car or boat in 2007?
The IRS allows taxpayers to deduct either their state income tax or sales tax, whichever is higher. (Clearly the big winners here are residents of the nine states that collect no income tax, such as Nevada and Florida.) To figure out if the sales tax deduction makes more sense than deducting state income tax, check out this tool.
• Did you make home improvements to boost energy efficiency in 2007?
The IRS offers a $500 credit to property owners who upgraded windows, doors, roofs, insulation, HVAC equipment, and non-solar water heaters last year. (This IRS provision has expired, so you had to do the work in 2007; you can still get credit on next year's return for solar water heaters and panels installed in 2008, however.)
The More the Merrier
The IRS also has a plethora of "Miscellaneous Deductions," including many work-related expenses that aren't reimbursed by your employer. You can claim only the amount of these expenses that total more than 2 percent of your adjusted gross income:
plethora = kb. kebanyakan, berlebih-lebihan. a p. books buku-buku yang kebanyakan.
• Did you search for a new job in your field?
Even if you were unsuccessful in your quest, you can deduct expenses for the phone, travel, employment agency and job counseling, resume preparation, copies, and postage. (You can't take this deduction if you're searching for your first job out of college or are changing careers.)
quest = kb. 1 penyelidikan. 2 pencarian. the q. for knowledge mencari ilmu pengetahuan. to go in q. of s.o. pergi mencari seseorang.
• Did you have to travel or buy work-related clothing or supplies?
You can deduct expenses related to travel that your employer does not reimburse (even those related to getting a passport). You can also take depreciation on a cell phone or home computer your employer requires for work-related needs.
Subscriptions to industry publications and professional journals, and legal fees related to doing or keeping your job (such as a contract negotiation), are also deductible.
So are union dues, uniforms, protective gear, tools, equipment, or other work-related clothing and supplies. (Watch out on uniforms -- a nurse's uniform can be deducted, but not something adaptable for other uses like a formal white shirt and black pants required to work as a waiter.)
union = kb. penyatuan, perpaduan. u. of hydrogen and oxygen perpaduan hidrogen dan oksigen. 2 serikat sekerja. 3 koperasi. 4 (wedlock) perkawinan.
due = kb. hak. She never asks for more than her d. Dia tak pernah meminta lebih daripada haknya. -dues j. iuran. -ks. seharusnya
• Did you pay for job-related continuing education?
"You can take this deduction if it helps you maintain your position, but not if it's to get you a new position," says Lebenhart.
For instance, an accountant who wants to take the CPA exam can't deduct the cost of the review course. But once he becomes a CPA, he can deduct the cost of continuing education required to maintain his CPA certification.
A Word on Documentation
Be sure to hang onto the receipts related to tax deductions for at least three years. If you already filed and missed a hefty deduction, you have three years to file an amended return.
hang onto = menggantung/kan ke
hefty = kokoh / kuat
Artikel ini ditulis oleh Laura Rowley, yang ditulis di http://finance.yahoo.com/expert/article/moneyhappy/74755
At this time of year, many people fear not finishing their tax returns on time, or getting hit with a big bill they can't cover. My worry is the tax code itself -- the thing is so big, so complex, with such a random assortment of deductions and credits, that I'm sure I'm missing something.
Overlooked = yang dilewatkan
assortment = bermacam-macam / sortiran
For instance, when my husband and I switched accountants a few years ago, the new one asked if we put money away for college. I told her we contributed to 529 college savings accounts in New York. She told me our previous accountant hadn't taken the state tax deduction we were entitled to on our prior-year return.
entitled = yang diberi hak/judul
Tax Yourself on Deductions
The roughly one-third of Americans who itemize their returns typically know about the big deductions -- mortgage interest, charitable giving, qualified retirement-related contributions. But there are a whole host of other categories that many people overlook.
roughly = dengan kasar
I use a professional for fear that I'm not maximizing my deductions (and the fact that my husband and I both run our own businesses), and an estimated 40 million people rely on tax software. If you don't use either -- or if your tax preparer makes minimal inquiries about your finances -- here are some questions to ask yourself so you don't miss opportunities to reduce your 2007 tax bill:
• Did you refinance your mortgage last year?
Any "points" you paid to reduce your mortgage interest rate are deductible, along with your mortgage interest. Did you pay a prepayment penalty to get out of your old mortgage? That may be deductible as well.
If you purchased a new home, don't forget to look at your closing statement and deduct the real estate taxes paid at closing and any points on your mortgage.
• Did you have a major medical problem in 2007?
The IRS allows you to deduct medical expenses that surpass 7.5 percent of your adjusted gross income. That sounds like a lot -- someone making $60,000 could deduct any expenses beyond $4,500. But the IRS has an extensive list of what qualifies as medical expenses.
Health insurance premiums you pay out of pocket, co-pays, prescriptions, and lodging for medical purposes (up to $50 per person) are all deductible, as are therapies to stop smoking. In addition, if you had to drive to the doctor's office, an X-ray facility, physical therapy, or a medical supply store to pick up crutches or a wheelchair, you can deduct the miles you drove, parking, tolls, and the like. Even a portion of your insurance premiums for long-term care can be deducted.
prescriptions = resep obat
lodging = penginapan
pick up = mengambil
crutch = kb. tongkat ketiak. 2 penolong. 3 penyokong, penopang.
• Do you work at home, and have an office that's exclusively devoted to work?
If so, you can deduct a percentage of your rent or mortgage, utilities, homeowner's insurance, and maintenance for the room. Just make sure it's your primary office, and doesn't double as a guest suite on weekends, says New York CPA Eliot Lebenhart.
devote = kkt. 1 mencurahkan. 2 bertekun. 3 menyediakan. to be devoted to sayang akan adiknya yang perempuan.
"You have to have the production of your income take place there," Lebenhart explains. "I do a lot of work in the entertainment businesses, and I don't deduct it because my clients are usually just doing record-keeping there, they're not performing or modeling in the home." Also, if your employer provides a space for you at work and the home office is merely for convenience, don't take the deduction, he says.
Lebenhart says states are becoming aggressive about auditing on home offices so they don't miss out on revenue. New York managed to collect income tax from an employee who worked and lived in Tennessee (he telecommuted and was only in his New York office 30 days during the year). It also collected state income tax from a college professor who taught a day or two in the state but otherwise worked at home in Connecticut.
taught = yang diajar
• Did you pay any bills related to education for yourself or dependents?
You can deduct up to $2,500 of the interest on a student loan. Depending on your income, you can take advantage of the Hope Credit for qualified expenses for the first two years of undergraduate education or the Lifetime Learning Credit from sophomore year through graduate school. (You can't claim both simultaneously.)
Your state may offer additional tax benefits related to educational expenses.
• Did you pay for child care for a kid under age 13 while you worked full-time?
You can deduct expenses up to $3,000 related to a babysitter, day care center (including after-care services at your child's school), and summer day camp.
• Did you buy a car or boat in 2007?
The IRS allows taxpayers to deduct either their state income tax or sales tax, whichever is higher. (Clearly the big winners here are residents of the nine states that collect no income tax, such as Nevada and Florida.) To figure out if the sales tax deduction makes more sense than deducting state income tax, check out this tool.
• Did you make home improvements to boost energy efficiency in 2007?
The IRS offers a $500 credit to property owners who upgraded windows, doors, roofs, insulation, HVAC equipment, and non-solar water heaters last year. (This IRS provision has expired, so you had to do the work in 2007; you can still get credit on next year's return for solar water heaters and panels installed in 2008, however.)
The More the Merrier
The IRS also has a plethora of "Miscellaneous Deductions," including many work-related expenses that aren't reimbursed by your employer. You can claim only the amount of these expenses that total more than 2 percent of your adjusted gross income:
plethora = kb. kebanyakan, berlebih-lebihan. a p. books buku-buku yang kebanyakan.
• Did you search for a new job in your field?
Even if you were unsuccessful in your quest, you can deduct expenses for the phone, travel, employment agency and job counseling, resume preparation, copies, and postage. (You can't take this deduction if you're searching for your first job out of college or are changing careers.)
quest = kb. 1 penyelidikan. 2 pencarian. the q. for knowledge mencari ilmu pengetahuan. to go in q. of s.o. pergi mencari seseorang.
• Did you have to travel or buy work-related clothing or supplies?
You can deduct expenses related to travel that your employer does not reimburse (even those related to getting a passport). You can also take depreciation on a cell phone or home computer your employer requires for work-related needs.
Subscriptions to industry publications and professional journals, and legal fees related to doing or keeping your job (such as a contract negotiation), are also deductible.
So are union dues, uniforms, protective gear, tools, equipment, or other work-related clothing and supplies. (Watch out on uniforms -- a nurse's uniform can be deducted, but not something adaptable for other uses like a formal white shirt and black pants required to work as a waiter.)
union = kb. penyatuan, perpaduan. u. of hydrogen and oxygen perpaduan hidrogen dan oksigen. 2 serikat sekerja. 3 koperasi. 4 (wedlock) perkawinan.
due = kb. hak. She never asks for more than her d. Dia tak pernah meminta lebih daripada haknya. -dues j. iuran. -ks. seharusnya
• Did you pay for job-related continuing education?
"You can take this deduction if it helps you maintain your position, but not if it's to get you a new position," says Lebenhart.
For instance, an accountant who wants to take the CPA exam can't deduct the cost of the review course. But once he becomes a CPA, he can deduct the cost of continuing education required to maintain his CPA certification.
A Word on Documentation
Be sure to hang onto the receipts related to tax deductions for at least three years. If you already filed and missed a hefty deduction, you have three years to file an amended return.
hang onto = menggantung/kan ke
hefty = kokoh / kuat
Artikel ini ditulis oleh Laura Rowley, yang ditulis di http://finance.yahoo.com/expert/article/moneyhappy/74755
Senin, 23 Februari 2009
Alternative Minimum Tax (AMT) - Part I
copy paste ini seperti biasa dari http://finance.yahoo.com/how-to-guide/taxes/136786
Sebenarnya, ingin sekali saya menejemahkan ke dalam bahasa indonesia, mungkin bisa, tetapi saya akan tertawa membacanya.
The AMT was originally devised to help prevent high income filers from avoiding tax altogether through the clever use of various deductions. The AMT effectively takes back some of the tax breaks allowed for regular tax purposes. The only way to really tell if you are "caught" in the AMT is to determine your regular tax liability, then your AMT liability and see which is higher. In true IRS spirit, the higher liability is the one you pay.
devised = difikirkan
Topics
The AMT -- An Overview
Computing Alternative Minimum Tax on Form 6251
Adjustments for AMT
Standard Deduction and Personal Exemptions Not Allowed
Certain Itemized Deductions Disallowed for AMT Purposes
Mortgage Interest
Taxes
Medical Expenses
Miscellaneous Deductions
Investment Interest
Incentive Stock Option (ISO)
Other Adjustments
1
The AMT -- An Overview
The AMT is an additional tax that you may owe if for regular tax purposes you claimed:
Itemized deductions, such as taxes, interest on home equity loans used for nonresidential purposes, medical expenses, and miscellaneous job and investment expenses.
Certain tax-exempt interest, accelerated depreciation, and incentive stock option benefits.
A substantial number of exemptions for dependents.
There are no specific tests to determine whether or not you are liable for AMT. You must first figure your regular income tax and then see whether tax benefit items must be added back to taxable income to figure alternative minimum taxable income, on which the AMT is figured. If after claiming the AMT exemption and applying the AMT rates of 26% and 28% the tentative alternative minimum tax exceeds your regular income tax, the excess is your AMT liability, which is added to the regular tax on your return. In other words, your tax liability for the year will be the greater of your regular tax or your AMT.
AMT liability is figured on Form 6251 and is attached to Form 1040. If you file Form 1040A, AMT liability, if any, is figured on a worksheet and the AMT is entered on the line for total tax on Form 1040A.
2
Computing
You use Form 6251 to compute AMT liability,if any.
AMT adjustments and preferences are generally added back to regular taxable income to calculate alternative minimum taxable income (AMTI). The items that most commonly get added back to income when calculating AMTI are personal exemptions, state and local taxes, and miscellaneous itemized deductions.
AMTI is reduced by the allowable AMT exemption. Subject to the phaseout rule, the exemption for 2008 is $46,200 if single or head of household, $69,950 if married filing jointly or qualifying widow(er), or $34,975 if married filing separately.
After reducing AMTI by the allowable exemption, a 26% AMT rate generally applies to the first $175,000 of AMT income ($87,500 if married filing separately), and a 28% rate applies to any balance of the AMT income. However, if you had net capital gains that qualify for reduced capital gains rates, you apply the same capital gains rate for AMT purposes as for regular income tax purposes.
The resulting tax, less any AMT foreign tax credit, is the tentative AMT, which applies only to the extent it exceeds your regular income tax. For this purpose, regular income tax is the tax on your taxable income, without taking into account personal credits (such as the child tax credit or education credits), minus any special averaging tax on a lump-sum distribution or any regular foreign tax credit. The excess of tentative AMT over this regular tax, if any, is the AMT liability that you must report as an additional tax on Line 45 of Form 1040.
3
Adjustments for AMT
The starting point for figuring AMT is your adjusted gross income from Form 1040. This amount will generally be increased by adjustments on Form 6251. The adjustments are outlined in each section below. Back to top
4
Standard Deduction and Personal Exemptions Not Allowed
If you claimed the standard deduction for regular tax purposes, the deduction is disregarded when figuring AMT liability. You also must disregard the personal exemptions claimed for regular tax purposes. Back to top
5
Certain Itemized Deductions Disallowed for AMT Purposes
Some key itemized deductions claimed on Schedule A are disallowed or reduced when figuring alternative minimum taxable income (AMTI) on Form 6251. For example, no AMT deduction is allowed for state and local income (or, if elected, sales) taxes, real property taxes, or personal property taxes, or for foreign income or real property taxes. Also not allowed for AMT purposes are miscellaneous itemized deductions that were allowed on Schedule A after application of the 2% AGI floor. A smaller deduction for medical expenses is allowed for AMT than for regular tax purposes. The deduction for interest on home equity mortgage loans may have to be reduced. Investment interest may have to be refigured for AMT.
On the other hand, if some of your itemized deductions were disallowed on Schedule A by the 3% reduction rule for taxpayers with adjusted gross income over $159,950 ($79,975 if married filing separately), the disallowed amount is entered as a negative adjustment to AMTI. Back to top
6
Mortgage Interest
Less interest may be deductible for AMT purposes than for regular tax purposes. If an interest deduction is claimed on Schedule A for debt that does not qualify under the AMT rules, that interest is added back as an adjustment on Form 6251.
No AMT adjustment is required for home mortgage interest paid on a debt incurred to buy, construct, or substantially rehabilitate your principal residence or qualifying second residence. The residence may be a house, apartment, cooperative apartment, condominium, or mobile home not used on a transient basis. Nor is an adjustment required for interest on a debt incurred before July 1, 1982, provided that the mortgage was secured at the time it was taken out by your principal residence or any other home used by you or a family member. Back to top
7
Taxes
State, local, and foreign taxes deducted on Schedule A must be added back to income in figuring AMT. If in 2008 you received a refund of taxes deducted in a prior year and the refund is reported as income on your 2008 Form 1040, you enter the refund on Form 6251 (Line 8) as a negative adjustment in figuring alternative minimum taxable income. Back to top
8
Medical Expenses
If medical expenses in excess of the 7.5% AGI floor are deducted for regular tax purposes, you must add back to income on Form 6251 the smaller of the allowable medical deduction from Schedule A or 2.5% of adjusted gross income. This adjustment is to allow medical expenses as an AMT deduction only to the extent that they exceed 10% of AGI. Back to top
9
Miscellaneous Deductions
In figuring alternative minimum taxable income (AMTI), you may not deduct miscellaneous itemized deductions in excess of 2% of adjusted gross income that you claim on Schedule A. These include unreimbursed job expenses, tax preparation fees, and contingent legal fees paid to recover taxable damages in employment or personal legal actions. Back to top
10
Investment Interest
If for regular tax purposes you claimed an itemized deduction (Schedule A) for investment interest on Form 4952, you must complete a second Form 4952 to determine if your allowable deduction for AMT is more or less than the itemized deduction, taking into account AMT adjustments and preferences. The difference between the regular tax deduction and the allowable AMT deduction is entered on Form 6251 as a positive adjustment if the regular tax deduction is more, or as a negative adjustment if the AMT amount is more. For example, if you paid interest on a home equity loan whose proceeds were invested in stocks or bonds, that interest is not treated as investment interest on Form 4952 when figuring the itemized deduction for regular tax purposes, but it is included as investment interest on the second Form 4952 used to figure the allowable AMT amount. Back to top
11
Incentive Stock Option (ISO)
For regular tax purposes, you are not taxed when you exercise an incentive stock option (ISO). However, the exercise of an ISO can result in a substantial AMT liability. You generally must increase AMT income by including on Form 6251 the excess, if any, of:1. The fair market value of the stock acquired through exercise of the option (determined without regard to any lapse restriction) when your rights in the acquired stock first become transferable or when these rights are no longer subject to a substantial risk of forfeiture, over2. The amount you paid for the stock, including any amount you paid for the ISO used to acquire the stock.Note: If you acquire stock by exercising an ISO and you dispose of that stock in the same year, the tax treatment under the regular tax and the AMT is the same. No AMT adjustment is required. If you exercised ISOs in the past and have an unused minimum tax credit, there is a refundable credit for 2008 for a portion of this old credit. The credit rules are explained on Form 8801. Back to top
12
Other Adjustments
Adjustments must also be made for:
MACRS depreciation
Mining exploration and development costs
Circulation costs
Long-term contracts
Amortization of certified pollution control facilities
Research and experimental expenditures
Passive tax-shelter farm losses
Passive losses from nonfarming activitiesBack to top
Summary
The AMT effectively takes back some of the tax breaks allowed for regular tax purposes.
There are no specific tests to determine whether or not you are liable for AMT. You must first figure your regular income tax and then see whether tax benefit items must be added back to taxable income to figure alternative minimum taxable income, on which the AMT is figured.
AMT adjustments and preferences are generally added back to regular taxable income to calculate alternative minimum taxable income (AMTI). The items that most commonly get added back to income when calculating AMTI are personal exemptions, state and local taxes, and miscellaneous itemized deductions.
Sebenarnya, ingin sekali saya menejemahkan ke dalam bahasa indonesia, mungkin bisa, tetapi saya akan tertawa membacanya.
The AMT was originally devised to help prevent high income filers from avoiding tax altogether through the clever use of various deductions. The AMT effectively takes back some of the tax breaks allowed for regular tax purposes. The only way to really tell if you are "caught" in the AMT is to determine your regular tax liability, then your AMT liability and see which is higher. In true IRS spirit, the higher liability is the one you pay.
devised = difikirkan
Topics
The AMT -- An Overview
Computing Alternative Minimum Tax on Form 6251
Adjustments for AMT
Standard Deduction and Personal Exemptions Not Allowed
Certain Itemized Deductions Disallowed for AMT Purposes
Mortgage Interest
Taxes
Medical Expenses
Miscellaneous Deductions
Investment Interest
Incentive Stock Option (ISO)
Other Adjustments
1
The AMT -- An Overview
The AMT is an additional tax that you may owe if for regular tax purposes you claimed:
Itemized deductions, such as taxes, interest on home equity loans used for nonresidential purposes, medical expenses, and miscellaneous job and investment expenses.
Certain tax-exempt interest, accelerated depreciation, and incentive stock option benefits.
A substantial number of exemptions for dependents.
There are no specific tests to determine whether or not you are liable for AMT. You must first figure your regular income tax and then see whether tax benefit items must be added back to taxable income to figure alternative minimum taxable income, on which the AMT is figured. If after claiming the AMT exemption and applying the AMT rates of 26% and 28% the tentative alternative minimum tax exceeds your regular income tax, the excess is your AMT liability, which is added to the regular tax on your return. In other words, your tax liability for the year will be the greater of your regular tax or your AMT.
AMT liability is figured on Form 6251 and is attached to Form 1040. If you file Form 1040A, AMT liability, if any, is figured on a worksheet and the AMT is entered on the line for total tax on Form 1040A.
2
Computing
You use Form 6251 to compute AMT liability,if any.
AMT adjustments and preferences are generally added back to regular taxable income to calculate alternative minimum taxable income (AMTI). The items that most commonly get added back to income when calculating AMTI are personal exemptions, state and local taxes, and miscellaneous itemized deductions.
AMTI is reduced by the allowable AMT exemption. Subject to the phaseout rule, the exemption for 2008 is $46,200 if single or head of household, $69,950 if married filing jointly or qualifying widow(er), or $34,975 if married filing separately.
After reducing AMTI by the allowable exemption, a 26% AMT rate generally applies to the first $175,000 of AMT income ($87,500 if married filing separately), and a 28% rate applies to any balance of the AMT income. However, if you had net capital gains that qualify for reduced capital gains rates, you apply the same capital gains rate for AMT purposes as for regular income tax purposes.
The resulting tax, less any AMT foreign tax credit, is the tentative AMT, which applies only to the extent it exceeds your regular income tax. For this purpose, regular income tax is the tax on your taxable income, without taking into account personal credits (such as the child tax credit or education credits), minus any special averaging tax on a lump-sum distribution or any regular foreign tax credit. The excess of tentative AMT over this regular tax, if any, is the AMT liability that you must report as an additional tax on Line 45 of Form 1040.
3
Adjustments for AMT
The starting point for figuring AMT is your adjusted gross income from Form 1040. This amount will generally be increased by adjustments on Form 6251. The adjustments are outlined in each section below. Back to top
4
Standard Deduction and Personal Exemptions Not Allowed
If you claimed the standard deduction for regular tax purposes, the deduction is disregarded when figuring AMT liability. You also must disregard the personal exemptions claimed for regular tax purposes. Back to top
5
Certain Itemized Deductions Disallowed for AMT Purposes
Some key itemized deductions claimed on Schedule A are disallowed or reduced when figuring alternative minimum taxable income (AMTI) on Form 6251. For example, no AMT deduction is allowed for state and local income (or, if elected, sales) taxes, real property taxes, or personal property taxes, or for foreign income or real property taxes. Also not allowed for AMT purposes are miscellaneous itemized deductions that were allowed on Schedule A after application of the 2% AGI floor. A smaller deduction for medical expenses is allowed for AMT than for regular tax purposes. The deduction for interest on home equity mortgage loans may have to be reduced. Investment interest may have to be refigured for AMT.
On the other hand, if some of your itemized deductions were disallowed on Schedule A by the 3% reduction rule for taxpayers with adjusted gross income over $159,950 ($79,975 if married filing separately), the disallowed amount is entered as a negative adjustment to AMTI. Back to top
6
Mortgage Interest
Less interest may be deductible for AMT purposes than for regular tax purposes. If an interest deduction is claimed on Schedule A for debt that does not qualify under the AMT rules, that interest is added back as an adjustment on Form 6251.
No AMT adjustment is required for home mortgage interest paid on a debt incurred to buy, construct, or substantially rehabilitate your principal residence or qualifying second residence. The residence may be a house, apartment, cooperative apartment, condominium, or mobile home not used on a transient basis. Nor is an adjustment required for interest on a debt incurred before July 1, 1982, provided that the mortgage was secured at the time it was taken out by your principal residence or any other home used by you or a family member. Back to top
7
Taxes
State, local, and foreign taxes deducted on Schedule A must be added back to income in figuring AMT. If in 2008 you received a refund of taxes deducted in a prior year and the refund is reported as income on your 2008 Form 1040, you enter the refund on Form 6251 (Line 8) as a negative adjustment in figuring alternative minimum taxable income. Back to top
8
Medical Expenses
If medical expenses in excess of the 7.5% AGI floor are deducted for regular tax purposes, you must add back to income on Form 6251 the smaller of the allowable medical deduction from Schedule A or 2.5% of adjusted gross income. This adjustment is to allow medical expenses as an AMT deduction only to the extent that they exceed 10% of AGI. Back to top
9
Miscellaneous Deductions
In figuring alternative minimum taxable income (AMTI), you may not deduct miscellaneous itemized deductions in excess of 2% of adjusted gross income that you claim on Schedule A. These include unreimbursed job expenses, tax preparation fees, and contingent legal fees paid to recover taxable damages in employment or personal legal actions. Back to top
10
Investment Interest
If for regular tax purposes you claimed an itemized deduction (Schedule A) for investment interest on Form 4952, you must complete a second Form 4952 to determine if your allowable deduction for AMT is more or less than the itemized deduction, taking into account AMT adjustments and preferences. The difference between the regular tax deduction and the allowable AMT deduction is entered on Form 6251 as a positive adjustment if the regular tax deduction is more, or as a negative adjustment if the AMT amount is more. For example, if you paid interest on a home equity loan whose proceeds were invested in stocks or bonds, that interest is not treated as investment interest on Form 4952 when figuring the itemized deduction for regular tax purposes, but it is included as investment interest on the second Form 4952 used to figure the allowable AMT amount. Back to top
11
Incentive Stock Option (ISO)
For regular tax purposes, you are not taxed when you exercise an incentive stock option (ISO). However, the exercise of an ISO can result in a substantial AMT liability. You generally must increase AMT income by including on Form 6251 the excess, if any, of:1. The fair market value of the stock acquired through exercise of the option (determined without regard to any lapse restriction) when your rights in the acquired stock first become transferable or when these rights are no longer subject to a substantial risk of forfeiture, over2. The amount you paid for the stock, including any amount you paid for the ISO used to acquire the stock.Note: If you acquire stock by exercising an ISO and you dispose of that stock in the same year, the tax treatment under the regular tax and the AMT is the same. No AMT adjustment is required. If you exercised ISOs in the past and have an unused minimum tax credit, there is a refundable credit for 2008 for a portion of this old credit. The credit rules are explained on Form 8801. Back to top
12
Other Adjustments
Adjustments must also be made for:
MACRS depreciation
Mining exploration and development costs
Circulation costs
Long-term contracts
Amortization of certified pollution control facilities
Research and experimental expenditures
Passive tax-shelter farm losses
Passive losses from nonfarming activitiesBack to top
Summary
The AMT effectively takes back some of the tax breaks allowed for regular tax purposes.
There are no specific tests to determine whether or not you are liable for AMT. You must first figure your regular income tax and then see whether tax benefit items must be added back to taxable income to figure alternative minimum taxable income, on which the AMT is figured.
AMT adjustments and preferences are generally added back to regular taxable income to calculate alternative minimum taxable income (AMTI). The items that most commonly get added back to income when calculating AMTI are personal exemptions, state and local taxes, and miscellaneous itemized deductions.
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