I have a friend who sold a house and lost money. She does not live in US. When the house was sold at a loss, she still has Federal Income Tax withheld. How can she claim the Tax Return from the Federal government?
She has a federal identification number. Can that be her ITIN?
It seems not easy to get an ITIN because she lives in Asia. Is there a deadline for her to file tax return in US?
She’ll have to apply for An Individual Taxpayer Identification Number for tax purposes. Form W-7. And then file a 1040 income tax form. In most cases, however, the money the IRS withheld can be used as a tax credit against any income taxes her own country imposes.
You mentioned in your state of the union address that Warren Buffets’ secretary should not pay more income tax than her boss. Wouldn’t it be better said that she should have her Income Tax lowered to 15% rather than his raised to 30%?
no…the point of taxes is to raise revenue to cover idiotic military spending by republicans and equally idiotic social welfare spending by democrats.
lowering taxes doesn’t make sense when you are spending outside your means…that would be like someone with two jobs that pays a total of $3,000/mo, but who is now $4,500 of debt due to cancer(or some other unforseen ailment) quitting one job and cutting her revenue to $1,500/mo in response to being in debt…generally the idea is to do the opposite.
I am doing my taxes by myself for the first time, and I heard somewhere that your state income taxes can be a write off on your federal income tax. Is that true?
If you itemize (see if your itemized deductions on 1040, Schedule A exceed your standard deduction, which is $10,700 for married filing joint, $7850 for head of household, $5350 for single or married filing separate in ’07), you may deduct EITHER state and local income taxes OR your state and local general sales taxes. You cannot deduct both. You make your election on line 5 of Schedule A by checking box a for income taxes or box b for general sales taxes. The option to claim sales taxes instead of Income Taxes will not be allowed following 2007 unless Congress extends the law permitting this option.
Citizens for Tax Justice and the Institute on Taxation and Economic Policy reviewed 280 Fortune 500 companies and found that on average they paid about half of the 35% federal Income Tax rate. 30 corporations had a negative rate, i.e. they received. Guest host Brian Unger breaks it down with Jayar Jackson on The Young Turks.