Hi,I will have the first time Corp. TAX return for my own busienss, and new accountant is taking care of it. Today he said "your net income is XX" and this XX number is $3k over than the actual. I asked why, and he says "this is Accounting adjustment and can not explain each one". \nIs anyone know if this would happen & right? I just wanted ask right now at night...\nThanks for your advice.
200779
OK, let's see here. An accountant is making an accounting adjustment and they can not or will not explain why they are. Sounds like to me your being taken advantage of. Keep in mind, your accountant works for you. Now I am curious to know what type of business you are in. Most small businesses really don't need to hire an accountant in the first place. If you hired an accountant to do your business taxes that I can understand, however, they should be able to explain everything to you. You may even want to fire the accountant if they do not explain everything to you. Be forceful, remember you own the company, not the accountant.
454373
It means they paid you back...but, they paid you too much!  So, you still owe again!!!\n\nI would get with my Accountant or whom ever is paying your taxes and tell them to get on the ball and straighten this thing out... \n\nApparently they are not paying attention if your paying 2 - 3 times what you should be.. Or I would be seeking a different Accountant  PDQ!!!\n\nI wish you well..\n\nJesse
419367
I'm amazed by some of the answers. You haven't had any income at all. What income are you going to report?? NO INCOME = NO TAX RETURN.
393053
1)  Yes you need to report it.\n\n2)  Because only the sales price is reported to them by the broker.  It is your job to track the cost and report it correctly on Schedule D.  If you fill out the form correctly, you will only be taxed on the gain.\n\n3)  Yes but I guess that they caught your error through their matching program.  The broker reported $4200 in proceeds to them and they expect to see $4200 on a Schedule D.\n\nTake it to a professional before you dig yourself a bigger hole.
608280
If you are on a salary, your employer will withhold taxes from your paycheck. This is actually you paying taxes. When you file your tax return, you are reconciling the amount of taxes you have paid against the actual amount owed. If not enough was withheld, you will owe taxes. If too much is owed, you may also owe interest and penalties, so you want to make sure your withholding are reasonable so that you basically cover all your taxes owed. If you have paid too much, you get a refund, but getting a large refund doesn't mean you have hit the lottery. It means you have been having too much withheld from your check and you have made an interest-free loan to the government. Your goal should be to get back or owe no more than about $100. When you start a job, you have to fill out federal and state tax withholding forms, which explain how to calculate a reasonable number of exemptions. You can also change these at any time, if your circumstances change, like you take a second job, you get married, you have a child, etc. If you don't know what you are doing, ask a tax professional to help you figure it out.\n\nNow, as for when to file your taxes. Do your tax return as soon as you get all the information you need (W2s, 1099s, etc.). If you are getting a refund, file right away. If you owe (but not enough to owe a penalty) wait and file close to April 15. If you owe with a penalty, pay as soon as possible, since the interest will keep accruing.\n\nHope that helps.
101784
First of all, the number on the w-4 Form is NOT dependents; this number is called a "withholding allowance" and can be any number you want.  The higher the number, the less will be withheld from you income for taxes and such.  A withholding allowance of "0" will have the most withheld; 99 will have the least. The idea is to adjust that number so that by the end of the year you will have had more or less the correct amount withheld to cover your income tax liability.  If you find you had too much withheld, then file a new W-4 with your employer and increase the number; conversely, if you did not have enough withheld then lower the number. Interestingly, if you had no Federal tax libility for the prior year and reasonably expect to have none in the current year, you can claim "exempt" and have NOTHING withheld.\n\nYou probably have no recourse at all with your employer, they simply screwed up.  You are still liable for tax in the end, so make sure they get it right.
93621
Word to the wise ....If your company nets less than $150,000....stay a sole prop...if it is more, it is time to consider going inc. Keep in mind, there is more paperwork when it comes to all your taxes and you will need a great CPA. Also look at the profit margin for your last few years, How tight was it... Did you break even or make money. You will be slapped with a franchise tax but it will be over a year away because it is based on your previous years income. MORE TAXES....UGH! I would also complete a risk assessment. R U in a company or business that could very easily become victim to a lawsuit??? If so, INC is the way to go! Protect your personal assets! Good Luck and I hope this helped!!!
300572
You need to calculate your benfits into what you are paid vs. your billable rate. If you were a consultant and were being billed at $175 you the overhead should average $20 to $30 and you get the rest which would be $145 to $155...maybe you should go out on your own as a consultant ??
597703
My husband and I are opening our own business also and have heard some horror stories about friends of ours who tried to do their accounting themselves and ended up owing the IRS thousands.  I think it's worth it (especially for peace of mind) to go ahead and hire an accountant to do your taxes and who will guide you with the rest of your accounting also.  You can shop around and get quotes from different accountants and also ask other business owners in your area who they trust. :)
611085
I cannot tell you what it would be for the state, but for the federal anything under $7,550 is going to be at the 10% tax rate for a single filer. However, that is not including the self employment tax that you would have to pay. That rate is 15.3% for 2005. But remember you get half of that back to adjust your gross income.\n \nAll of this information is assuming that you receive a 1099-MISC statement at the end of the year. I hope this helps.
173517
You will possibly be liable for any taxes that you are responsible for.If this guy is a big enough tax evader, you can get a percentage of everything he owes, sometimes 20%.This could MORE than cover any taxes you owe.The IRS prints out Publication 15 Circular E, that defines exactly what a contractor is, what an employee is, and how much tax is to be withheld. Yes, I would report him. Talk to a lawyer or someone affiliated w/ legal aid at a law school, if you don't have the money to hire a lawyer.Oh, and have a new job ready.
48789
If you are married, you should file as married. It is not a garauntee you will get a huge return whether you file single or married. Depends on your income and how many deductions you have and /or any dependants that you claim. If you and your spouses income is not over a certain amount combined , I think the limit is $80,000, thats together, I think you should still get a good return if you file together. Hope for a big return for you. Make sure a professional does your taxes this year since you are newly married. Go over the return after the process, and next year you should be able to see what to do and what not to do, you can do them on your on if you like.
406913
If we have incurred an expense, then we owe the money to someone.\nAs we are making an adjustment, it means we have not yet received and posted an invoice, so the liabilty has not yet been registered.\nWe therfore need to increase the balance of a liability account.\n\nB is the correct answer.
172474
Turbo tax program breaks everything down for you and they have a set list of values already set in the program... Good Luck
426864
I'm not fully sure, but offhand I think the answer here is not a good idea.\n\nThe IRS looks at the line for officer's compensation in comparison to the rest of the return looking for someone trying to take all their compensation out via dividends.\n\nAlthough this isn't your case, I think it would be hard to argue that you are an independent contractor because of your relationship with the company.  Generally, this is a hot button issue with the IRS as many 'think' they can fit into the independent contractor because the definition is really vague.  \n\nIn any case, I'd consult your tax advisor for a look during your tax planning.
270006
The difference comes from different measures of earnings (the 'E' in EPS).  Some use the last calendar year, some use the last 4 quarters, some use earnings estimates for the coming year or 4 quarters.\n\nYou can calculate your own using the information available at Yahoo and earnings.com or use that info. to figure out the assumptions for the sites you list above.  Then you can use whichever one uses assumptions that make the most sense to you.\n\nAs long as you're consistent it will be a meaningful measure.  I like the past 4 quarters method.
635834
I haven't done this in forever, but I'll try.  If I get something egregiously wrong, let me know via email.\n\nIn the interests of laziness, I used M instead of MM for million.\n\nIn time 0, there's\n-15M\n-150k\nSum = -15.15M\n\nIn year 1,\nthere's\n-1M from fixed costs\n-5.65M from change in NWC (58M in sales -> 5.8M total)\n+8M from (sales - VC)\n-2.8M in tax\n+1.5M from deprecation tax shield\nSum = .05M\n\nIn year 2,\n-1M in fixed costs\n-2.9M from change in NWC (87M in sales)\n+12M from (sales - VC)\n-4.4M in tax\n+1.5 from depr\nSum = 5.2M\n\nIn year 3,\n-1M in fixed\n+4.35M (43.5M in sales)\n+6M from (sales - VC)\n-2M in tax\n+1.5 from depr\nSum = 8.85M\n\nAt the end (still year 3),\nthere's\n+4.35M from recovered NWC\n+3.75M in salvage value (might be less if the book value is less than 3.75...I don't exactly remember how to handle this, but it might be 60% depending on if the sale is taxed from whatever cost basis)\nSum = 8.1M\n\nSo, -15.15M + (.05M/1.2) + (5.2M/1.2^2) + (8.85/1.2^3) + (8.1M/1.2^3) = -1.69M\n\nThe IRR is relatively trivial from here.\n\nHm, so it's looking negative.  I'm not sure.  There's definitely something off in my calculations somewhere.  *shrug*