Archive for the ‘Tax’ Category
2290 Heavy Highway Vehicle Use Tax – What is It? How Much is It? and Who Needs to Pay?
The 2290 Heavy Highway Vehicle Use Tax is a $550 federal excise tax that must be paid on all vehicles that weigh 55,000 lbs or more and operate on public highways. The reporting period is from July 1st in any given year to June 30 the next year. The tax bill that is currently due is for the reporting period of July 1st, 2008, through June 30, 2009. If the vehicle will not put on more than 5,000 miles in the coming year (or, if it is agricultural, if it won’t put on more than 7,500 miles in the year), the $550 payment isn’t required, but you still must file form 2290.
Unless you are a new owner operator, you should have received form 2990 in the mail. You’ll need to read through the instructions, fill out the form, and mail it in by August 31st with payment.
If you bought a truck before July, 2008, you need to be sure the 2290 was paid for the months you were driving it prior to July. Trust us, the IRS will find out if the tax wasn’t paid and they will require you to pay the owed tax, plus penalties and interest.
You will need:
Your VIN (vehicle identification number), your EIN (employer identification number). The IRS does not accept your social security number for identification purposes on form 2290.
Who must file?
Whether you are leasing or buying a truck, you are responsible for filing and paying the 2290 Heavy Use Tax. If the vehicle is registered to you, you’d better be sure the tax is taken care of! If you bought a used truck, you are only required to pay the tax for the time period after you took possession of the truck- the former owner is required to pay the tax for the months prior to selling it to you. If, however, the former owner didn’t pay, the IRS expects you to pay the full amount owed.
When to file:
If you used the truck during July, 2008, then the tax is due August 31st. If you didn’t use the truck until August, 2008, then the tax is due September 30th. And so on. The tax is due the last day of the month after the truck hits the road. If the truck is not in use for the full tax period, you will not have to pay the full $550. Page 10 of the 2290 Instructions shows a sliding payment schedule.
Amount to pay:
Amounts shown are for trucks with a taxable gross weight of 75,000 or more that are not classified as logging vehicles. If you will use the truck for the full 12 months, you will pay $550. If the truck is was used starting July, 2008, you must pay the full $550. If you will be selling the truck or will, for whatever reason, not have the truck in use for the full tax period, you still have to pay the $550, but you can request a refund. It used to be that once you paid your 2290 for the coming year, your money was gone. If you sold the truck, you were still out the $550, and, if you didn’t provide the buyer with proof of the 2290 being paid, the buyer would have to file and pay a pro-rated 2290. One recent change to the 2290, is that if you sell your truck or if it is destroyed or stolen (unless it is recoverd and put back into use during the tax period), you can file for a tax credit. You can’t claim a higher credit than what you paid when you filed the form. If you wish to file for a credit, you must fill out form 8849 (Claim for Refund on Excise Taxes) and Schedule 6 (Other Claims).
The amount you must pay is as follows:
If the truck was first in use in July, 2008: $550 due August 31.
If the truck was first in use in August, 2008: $504.17 due September 30.
If the truck will first be in use in September, 2008: $458.33 due October 31.
If the truck will first be in use in October, 2008: $412.50 due November 30.
If the truck will first be in use in November, 2008: $366.67 due December 31.
If the truck will first be in use in December, 2008: $320.83 due January 31.
If the truck will first be in use in January, 2009: $275.00 due February 29.
If the truck will first be in use in February, 2009: $229.17 due March 31.
If the truck will first be in use in March, 2009: $183.33 due April 30.
If the truck will first be in use in April, 2009: $137.50 due May 31.
If the truck will first be in use in May, 2009: $91.67 due June 30.
If the truck will first be in use in June, 2009: $45.83 due July 31.
After that, you will be in the 2009 2290 tax reporting period.
Things to remember:
DON’T FORGET TO PUT YOUR FULL VIN ON SCHEDULE 1 (Form 2290)!
If you file by mail, make copies of the form and the check you send to keep for your records.
You will need to have proof of 2290 payment in order to keep your truck registration current.
If you need help filling out the form, you can call the IRS 2290 Call Site toll free from the US at 866-699-4096. From Canada or Mexico, call 859-669-5733 (not a free call). You can also stop in at your local IRS office for assistance.
Form 2290
Instructions for Form 2290
By: Suzanne Roquemore
About the Author:
CoopsAreOpen.com is the only comprehensive online resource for over 1100 truck weigh stations and scales as well as state DOT weight regulations and policies. Knowledge of the varying policies and the ability to manage or avoid most weigh stations can save truckers thousands of dollars in ticket fines.
25 Easily Overlooked Tax Deductions – A Simple List You Can Refer to When Preparing Your Tax Filing
If you are one of the millions of Americans who throws all their receipts, credit card and bank statements into a box, you are likely to overlook hundreds of dollars in tax deductions when preparing your tax filings.
May I suggest that you print out these often overlooked tax deductions onto a single piece of paper for easy reference as you start the annual process of looking for every possible tax-savings opportunity?
Here are 25 deductible expenses you don’t want to overlook.
Incoming search terms for the article:
tax deductions simple list 2011
International Tax Attorneys
Taxes must be paid on the basis not just of income earned within the country, but also outside the national borders. The IRS has international tax laws that deal with such income and an international tax attorney will be able to give you the best possible information on international tax laws. This will enable you to take advantage of legal exemptions and credits without the risk of committing tax fraud.
International tax attorneys act as advisors for anyone with sources of income outside the national border, from multinational organizations and US citizens living abroad, to US residents with property, assets, or businesses abroad.
International tax attorneys advise international business firms on issues like mergers, joint ventures, expansion, contracts, and leases. They negotiate on the basis of tax agreements between the US and other countries. They assist in structuring the company from a tax point of view.
For non-resident US citizens, international tax attorneys help secure certain exemptions from having to pay double income or property tax in form of a tax to the country of residence as well as to the IRS. They deal with issues of transfer pricing on tax, foreign estate laws, customs duty, and income tax laws. They also fight cases for US citizens charged with tax fraud abroad.
With more and more multinational firms expanding their businesses worldwide and the fluid world of e-commerce making borders redundant, business transactions between US and foreign firms have gone up, which brings the tax laws of many countries into play. The services of the international tax attorney are crucial for these companies.
Also, more US citizens are working and settling abroad and foreign citizens are choosing to own property in the US. This makes the assistance of an international tax attorney essential for not just big firms, but also ordinary citizens.
By: Max Bellamy
About the Author:
Tax Attorneys provides detailed information about tax attorneys, income tax attorneys, international tax attorneys and more. Tax Attorneys is affiliated with Tax Lien Certificates.
Student Tax and Education Credits For 2008
Even if you are still a student you may have to file a tax return in 2008. For example, if you were self-employed for some portion of the tax year and earned more than $400.00 during that self-employment, you will have to file a federal tax return and pay the necessary self-employment tax (Social Security/Medicare). You may be required to pay Medicare and Social Security tax on tips that you did not report to your employer or if you worked for a church or church-controlled organization that was exempt from those taxes.There are many forms of income that students sometimes receive that qualify as taxable income.
Some of this income may include:
Payment for services performed,
Money received through self-employment,
Money received through investments, and
Some scholarships and fellowships.
Allowances received through the Reserve Officers’ Training Corps are tax-exempt, but payments made over the summers qualify as taxable income.Foreign students who are resident aliens may be subject to some of the same tax laws as U.S. citizens.There are many credits available for students to offset the cost of education. The Hope Credit: This credit applies for the first two years of post-high school education, such as college or vocational school. You cannot take this credit for any years after the inital two.
You can claim up to $1,650 per eligible student, per year. The credit covers 100% of the first $1,100 of qualified tuition and related fees paid during the tax year, plus 50% of the next $1,100. Each student applying for the credit must have been enrolled in the education program at least half time during an academic period during the tax year.
The Lifetime Learning Credit – This credit applies to undergraduate, graduate, and professional degree courses, even courses that help improve your job skills. This credit equals 20% of the first $10,000 of post-high school tuition and fees you pay during the year, not to exceed $2,000. You may not apply for both credits for the same student in the same year. If you have graduated and started to pay back your student loan, you may be able to deduct some of the interest paid on your student loans (including the one time loan origination fee charged by your lender). Also, you may be able to claim a deduction for qualifying tuition and fees paid during the tax year for you, yourself, or a dependent.There are certain scholarships and grants that fall under the category of taxable income. The IRS warns that generally there is a 14%-30% withholding on taxable grants, fellowships, and scholarships.
By: Angela Stringfellow
About the Author:
To learn more about tax exemptions and find tax tips to help you maximize your tax savings, visit http://www.efile.com/taxes-exemptions.asp Estimate your federal taxes free at http://www.efile.com/tax-calculator
IRS Tax Deductions and Their Availability
Not all of us are really well versed in the tax related procedures. This is the reason that a number of people are not able to take advantage of even the basic things like IRS tax deductions. These tax deductions can be really helpful and they can bring down the amount that you are supposed to pay to the Internal Revenue Service by a considerable margin. With the help of information provided here, you would be able to grasp the basics of tax deductions.
Tax deductions are given of the money which has been spent for certain predefined purposes. The deductions work on the basis of income. This reduces the net taxable income of the person subject to taxes. What this means is that the money on the basis of which your tax liability would be calculated would come down and bring your tax liability down with it as well. These deductions take place beforehand. Being pre tax makes them a better tax planning measure than tax refunds.
Two main categories of tax deductions have been defined according to the law. They are standardized deductions and itemized deductions. Standardized deductions are based on you status of being single or married and the like. They are fixed dollar deductions. Itemized deductions on the other hand tend to vary as they are based on expenses which would vary from person to person. This means that there is no uniformity in the amount of deductions available to a person.
Some of the common cases where tax deductions are available include the money that you paid for job hunting including the money you paid to job agencies. Money spent on professional books and magazines as well as the charges for professional and business related associations especially union fees are also considered. Money spent on uniforms is also deductible. Certain other expenses related to the office can also get you tax deductions.
Money you save for the college eduction of your children is considered for tax deductions, so is the money you spend on getting job related classes. Business liability insurance premiums are among the list of tax deductible expenses which are available to people of United States.
Then there is the money you have spent at home, the money you spent to get the tax documentation prepared and advisory charges, contribution to traditional IRA, 401k, legal fees and alimony etc are all deductible from taxes. Certain types of donations also get you tax deductions. Naturally you would have to present the proof of all these things to benefit from these IRS tax deductions so bill and recipe hunting might become a big chore.
By: Dean Forster
About the Author:
Read more information about Ira Account setup and planning for your retirement at => http://www.iraaccountrules.com
Avoiding Capital Gains Tax On Real Estate – Some Important Tips
Real Estate is something that everybody wants, and invests in. One reason is to have your own house, and the other is to take advantage of a possible rise in real estate values. Both are subject to the laws regarding how it will be treated in real estate tax laws. Therefore, it is important to know something, if not everything about what are the tax laws governing real estate taxes. Of course, your tax consultant is the best person to brief you on this. This article skims over the surface of the tax laws. Remember your tax consultant is the right person to advise you.
Capital gains tax is not levied on the sale of your ‘primary’ residence, so long as you have declared it as your ‘primary’ residence. You must have lived in the house you sold for at least two years before you can claim it as your ‘primary residence’.If your profit from the sale is not greater than $ 250,000, if you are a bachelor/spinster, and $ 500,000 if you are married. You pay capital gains tax on the balance of the amount over the limits specified above. To make it clear, let’s say you are a bachelor and you sell your primary residence for $ 260,000. You will have to shell out capital gains tax on $ 10,000, which is exactly the difference between the limit fixed under law. If you are married, then you don’t pay capital gains tax! Why because the limit above which capital gains tax is payable is $ 500,000. If the sale is above that price, you only pay, as shown, on the differential between the limit, and what you sold it for.
One can use the definition of primary residence to still make money on real estate, and not pay the capital gains tax.
You buy a house, and live in it for two years. That qualifies it as a primary residence. Meanwhile you let out your old house (where you stayed before for at least two years), for say two years, and you sell this old house within five years of shifting to your new home, which becomes your primary home in reality and then sell the old house, you would not have to pay the capital gains tax. Let us be clear. You stay in a house for 2 years, it becomes your primary residence. You move into another house,(now your primary residence after two years) and let out this old house for say another 2 years. As long as you sell the old house within 5 years of moving out, there is no capital gains tax to be paid. Read this very carefully.
One more way that provides you exemption from capital gains tax is that the sum for which you sold your real estate should be reinvested by purchasing another piece of real estate. This has to be done within two years of your selling the real estate you had earlier. In other words, the tax authorities want you to reinvest the money you made from real estate into another real estate property within two years of the sale of the real estate. Read this again please carefully.
Please do consult with a tax consultant. This article cannot be construed as a genuine construction of the law relating to real estate tax laws.
By: Abhishek Agarwal
About the Author:
Abhishek is a Tax Consultant and he has got some great tips on Filing And Understanding Taxes! Download his FREE 84 Pages Ebook, “Taxes Made Easy!” from his website http://www.Positive-You.com/775/index.htm. Only limited Free Copies available.