Posts Tagged tax

Bernanke May Face Concerns on Second Jobless Recovery in Decade

Posted by Tetyana Matychak in Budget on February 24th, 2010

Federal Reserve Chairman Ben S. Bernanke, in two days of congressional testimony beginning today, will probably face questions on how he plans to end the worst jobs slump since the Great Depression.

Unemployment “will be a big topic” when the Fed chief faces the Senate Banking Committee, Senator Bob Menendez, a New Jersey Democrat and a panel member, said in an interview. “How do we help small- and mid-sized businesses, because they’re the ones who are going to create the jobs? What is he going to do and the Federal Reserve going to do to help grow this economy?”

Democratic leaders are pushing legislation to stimulate the job market amid concerns that unemployment will translate into losses in November elections. The Senate is scheduled to vote today on a $15 billion bill that provides a payroll tax holiday for hiring workers who have been jobless for at least 60 days.

Bernanke will deliver his semi-annual monetary policy report before the House Financial Services Committee at about 10 a.m. today. He plans to testify before the Senate Banking Committee tomorrow. Read the rest of this entry »

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China vows to keep “hot money” out of property market

Posted by Tetyana Matychak in Investing on February 12th, 2010

China vowed on Sunday not to let foreign speculative investment affect the property market, the latest expression of official concern that real-estate prices are racing ahead too fast.

The directive from the State Council, China’s cabinet, will serve as a guideline for local authorities and ministries, including the People’s Bank of China and the China Banking Regulatory Commission, to work out detailed policies.

“Relevant departments must enhance monitoring of loans and cross-border investment to prevent illegal inflows of capital into the property market and to avoid the impact of overseas hot money on China’s real-estate market,” the cabinet said.

It said the central bank and banking regulator should step up oversight and “window guidance” of mortgage lending.

About one-sixth of China’s nearly 10 trillion yuan ($1.5 trillion) in new loans last year flowed into the property sector.

Concerned that a property bubble could stir social and economic instability, Beijing has vowed to combat overly fast price increases, although its moves to date, such as restricting sales tax exemptions, have been relatively mild. Read the rest of this entry »

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Stiglitz: Regulate Banks. Now. Everywhere.

Posted by Tetyana Matychak in Banks, Favourites on February 1st, 2010

Officials in Davos should try to reach a global consensus about the need for a new regulatory regime for banks, Nobel Prize laureate Joseph Stiglitz told CNBC Friday.

Banks threaten to move to another location as soon as new taxes or regulation are announced, so the main problems that led to the financial crisis are not addressed, Stiglitz explained.

“If there was a broad consensus… this could stop this race to the bottom which got us into the mess we’re in now,” he said.

Bankers have incentives to take risk and one way to restrain them would be limiting the leverage that banks can have, according to Stiglitz.

“When they win they walk off with the profits, when they lose the taxpayer pays,” he pointed out. “We really need to go more directly at these issues like incentives.” Read the rest of this entry »

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Obama to Announce $38 Billion Business Tax Break

Posted by Tetyana Matychak in Trading Markets on January 28th, 2010

President Barack Obama will propose extending through 2010 a temporary tax incentive that encourages businesses to accelerate purchases of equipment, an administration official said.

The president will call for renewal of the 50 percent “bonus depreciation” in his State of the Union address tonight, said the official, who spoke on condition of anonymity.

Extending the break, which expired Dec. 31, would save companies that make qualified purchases of equipment such as tractors, wind turbines, solar panels and computers a total of $38 billion over this year and next, the official said.

Bonus depreciation was a tax element of the $787 billion economic recovery legislation adopted last February. It also has been a feature of earlier economic stimulus measures, including one adopted in 2003 under President George W. Bush. Read the rest of this entry »

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File Tax Returns for Past Years

Posted by Tetyana Matychak in Budget on January 22nd, 2010

Delaying a past due tax return costs you money.  Act quickly to file a late return.  It’s easier than you think.

File past tax returns.

Filing late will cost you less today than it will in the future -– you may even be eligible for a refund.

Filing a past year’s tax return is important because if you don’t file and you owe taxes for that year, the IRS will place you in their collection process.  Once that happens, you’ll receive a notice at 30-days and at 90-days past due.  Continued neglect of your tax liability can lead to loss of wages or bank accounts and in some cases loss of property.  You’ll also be liable for any penalties and interest — amounts that grow over time.

File taxes online.

You may not even owe taxes.  The government may owe you a refund.   Read the rest of this entry »

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Obama confident his proposed bank fee will become law

Posted by Tetyana Matychak in Banks on January 18th, 2010

President Barack Obama said Saturday that he’s determined his proposal to require banks repay taxpayers for financial-crisis aid through a special 10-year fee will become law.

“We’re not going to let Wall Street take the money and run. We’re going to pass this fee into law. And I’m going to continue to work with Congress on common-sense financial reforms to protect people and the economy from the kind of costly and painful crisis we’ve just been through,” Obama said in his weekly radio and Internet address.

The “Financial Crisis Responsibility Fee” proposed by Obama Thursday would total at least $90 billion over 10 years. The fee would be charged to financial institutions with more than $50 billion in assets. The assessment would remain in place for at least 10 years, or until all losses from the Troubled Asset Relief Program or TARP were repaid. Ten firms will pay 60% of the tax. Read more about the proposed fee.

“Those who oppose this fee say the banks can’t afford to pay back the American people without passing on the costs to their shareholders and customers. But that’s hard to believe when there are reports that Wall Street is going to hand out more money in bonuses and compensation just this year than the cost of this fee over the next ten years,” Obama said. Read the rest of this entry »

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Efile Day is January 15

Posted by Tetyana Matychak in Budget on January 14th, 2010

Filing taxes on paper is on the way out.  Efile is the new way to go.

File taxes online.

Filing your income tax return using paper forms is not quite as common as it once was. This is due in large part to the IRS efile option. With efile you have the ability to file your return electronically.  For anyone with access to the internet this is the best possible filing option.

First Day to Efile

The IRS tax calendar shows that the first day to efile in 2010 is January 15. The last day to efile without being penalized is April 15, 2010.

This gives you plenty of time to decide if efile is right for you, to collect all the proper documents, and to hire a tax professional if necessary. Read the rest of this entry »

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How much you’ll need in retirement

Posted by Tetyana Matychak in Budget, Favourites on January 8th, 2010

Conventional wisdom says you need 80% of your pre-retirement income. But ensuring a comfortable retirement will take more than just a rule of thumb.

Question: I always heard that you will need 80% or so of your working salary to live on in retirement. But is that a percentage of your gross income or your take-home pay? –Mary Taylor, Chalfont, Pennsylvania

Answer: This rule of thumb has long confused many people who are trying to get a handle on their retirement planning. But the question of how much income you’ll need to live comfortably after calling it a career has taken on a special urgency the last year or so as retirement account balances wilted during the market’s meltdown.

After all, if you earn roughly $100,000 a year and take home, say, $80,000 after taxes, the difference between requiring 80% of your gross income ($80,000) and 80% of your net income after taxes ($64,000) is substantial. Unless you’ve got a pretty sizeable nest egg, the difference between coming up with $80,000 a year (plus inflation increases to maintain purchasing power) and $64,000 can have a significant impact on whether your money can support you the rest of your life. Read the rest of this entry »

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Tax Form Help

Posted by Tetyana Matychak in Budget on December 16th, 2009

Have you found yourself in a bind as far as your tax situation is concerned? If so, you need to know one thing: what type of tax help is best for your situation. Once you know this you can then make the proper decisions about how to best move forward.

Download free tax forms.

For some, basic tax help is all they need. This would hold true if you just need some assistance filing your final income tax return. While this is difficult for you, a professional can handle anything you throw their way.

Of course, some situations are way more serious. Has the IRS sent you a notice of a tax lien? Are you being audited? If you are facing a serious situation you have to hire the right type of professional. Your best bet may be a tax attorney or enrolled agent – somebody with specialized experience.

Dealing with the IRS is never fun. To make the process a bit easier you can hire a tax professional who will represent you to the IRS while handling all necessary details. Read the rest of this entry »

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Fix Mistakes On Your Tax Return

Posted by Tetyana Matychak in Budget, Favourites on December 15th, 2009

Mistakes on tax returns are fairly common–leading to miscalculated taxes or refunds.  IRS offers easy ways to fix mistakes on taxes.

Adjust or amend your tax past tax return using the 1040x form.

Have you made mistakes in the past when filing your income tax return?  For many, mistakes lead to owing the IRS money. Doing taxes can be a frustrating experience even when you get it right and while such mistakes are especially upsetting, you can learn to avoid the same mistakes in the future.

Take for instance a self-employed professional who did not pay enough in quarterly taxes. The end result is a balance due along with their final return – this can really sting. The good thing is that this never has to happen twice.  Stay informed about tax rules and you’ll find there are easy ways to stay in compliance no matter the situation.

At some point in time you are probably going to make a mistake on your tax return.  Those who learn from their mistakes are going to be on easy street in the future. Read the rest of this entry »

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