Learn how federal tax law changes could impact your tax return in 2012 and Lower Tax Rates Extended. The 2012 Tax Relief Act extends through the end of Many of the tax breaks in recent tax-relief bills were designed to be phased Tax Relief for Taxpayers Who Lose Their Homes Due to Foreclosure Expires ... http://www.taxreliefcheckcoming.com Wed, 22 Feb 2012 17:58:38 +0100 FeedCreator 1.7.2 http://www.taxreliefcheckcoming.com/general/after-12-months-out-of-work-what-tax-relief-can-i-claim.html Q: I've taken a job on low pay, I having been out of work for over a year. I've only just started so I won't be liable for tax this year and in justifying the low wage, the boss said that I'd be entitled to extra tax relief next year. Is this true and how much is it worth? A There is an extra tax allowance ? that may apply in your case. If it does, it will last for three years starting next year. There is no point in claiming it for this year. There are terms and conditions. To qualify, you need to have been out of work for 12 months and to have been on a social welfare benefit or allowance. Up to 15 days of incidental employment and periods on F?s courses or training schemes are ignored in meeting that 12 months requirement, providing you had previously been claiming one of the relevant social welfare payments. The job must involve a minimum of 30 hours a week and be capable of lasting for at least a year. No more than 75% of your pay must be commissionbased and you can't be replacing someone who was unfairly dismissed or made redundant. Indeed, there must have been no redundancies in the business during the previous six months. If you meet those requirements you get an extra tax allowance of €3,810 a year, plus €1,270 for each dependant child. These are allowances granted at your marginal rate of tax. The personal allowance of €3,810 is worth €762 in saved tax to someone liable for tax at 20%, and €1,562 to someone paying tax at 41%. In addition to these tax benefits, you may also be entitled to retain any secondary benefits to which you were entitled while you were out of work, such as rent... articles - General Thu, 22 Dec 2011 09:17:53 +0100 http://www.taxreliefcheckcoming.com/general/businesses-extol-bpol-tax-relief.html Small-business owners have myriad views on all kinds of issues. But when it comes to Virginia's so-called "BPOL" tax, there seems to be across-the-board disdain. "It's a completely oppressive tax that needs to be removed immediately," said Rebecca Barnes, president of Prince William Living magazine, which has a print circulation of about 10,000. Barnes and others praised Manassas and Prince William County for moving forward with an initiative to make the tax slightly less onerous for small businesses and start-ups. But business owners say they hope both localities go even further. Manassas businesses that take in less than $150,000 in "gross receipts" - total revenue - are no longer subject to the Business, Professional and Occupational License tax, which is assessed based on how much money a company takes in. Prince William businesses taking in less than $200,000 will similarly get an exemption under the proposal. The county is expected to formally adopt the change after a public hearing, which has not been scheduled. Neither the city nor the county, however, is expected to roll back the tax completely. The BPOL tax has long drawn ire from some members of the Virginia General Assembly who say the tax - apparently implemented to pay for the War of 1812 - is burdensome and unnecessary. And the business community especially dislikes it because BPOL does not account for actual income - meaning businesses still pay even in years when they do not make a profit. Local governments, though, have come to rely on the revenue. BPOL taxes fed Manassas coffers to the tune of $2.7 million in fiscal 2011, said John P. Grzejka, the city's commissioner of revenue. The tax provided $21 million for the county during the same period. The city will lose about $100,000 this fiscal year with its BPOL change. The county expects a loss... articles - General Thu, 22 Dec 2011 09:17:53 +0100 http://www.taxreliefcheckcoming.com/general/can-i-claim-tax-relief-on-the-maintenance-i-pay-my-wife.html Q I'm paying maintenance to my wife. We are living apart, separated rather than divorced. Can I claim tax relief on the payments? A If the payment is legally enforceable and in respect of your wife, not in respect of children, you are entitled to claim tax relief on it, but it then becomes taxable in the hands of your wife, assuming she has sufficient income to be liable for tax. You need, of course, to be taxed as two single individuals rather than as a married couple. That's the simple answer to the question you ask, but you need to consider other issues. If your wife has no income of her own, you may be better opting to be taxed as a married couple so that you can benefit from married credits and wider tax bands. That may not be the best option because if there are children who spend some time with each of you as single taxpayers you could each qualify for the one-parent family tax credit. You also need to consider the impact of changes on any social welfare benefits being claimed by your wife. There is no single best solution. Ideally, you should sit down with your wife, do the sums and work out what's best for you both. Q I have a State pension of €240.30 a week and a private pension of €14,500 a year. When my wife was alive I was not liable for tax but she died last May. I told my pension provider, thinking they would deduct tax if it was due. How am I fixed? If I owe tax, what should I do? A You have no need to worry this year. You are still entitled to avail of the full married couple's exemption limit of €36,000 a year for 2011. Assuming no change in pension rates,... articles - General Thu, 22 Dec 2011 09:17:53 +0100 http://www.taxreliefcheckcoming.com/general/empty-property-tax-grab-plan-backfires-again.html Empty rate relief has failed to save government the millions of pounds it had anticipated, according to the latest department for Communities and Local Government statistics. Figures for the year ended 31 March show that the government awarded more than ?1.1bn in empty property relief -- an increase of ?4.6m on 2009/10 and up by more than ?520m on 2008/09. CLG had said that the 2009/10 rise was caused by the decision to raise rate relief from ?2,200 to ?15,000 temporarily. However, this latest increase comes despite government reducing the empty rate relief threshold from J18,000 to ?2,600. Observers said the level of relief had failed to deliver the anticipated savings owing to the industry's use of clever avoidance tactics, such as intermittent occupation, whereby a tenant occupies a building for six weeks to enable a six-month, rate-free period. The latest CLG figures also show that there are now 269,000 non-domestic empty properties in the UK -- equivalent to 16% of the country's total stock. Jerry Schurder, head of rating at Gerald Eve, said: "The proportion of the country's stock that is vacant is quite staggering and surely only harm is being done by charging empty rates on all this space." Between 2005 and 2008, empty property rate relief cost Whitehall roughly ?1.3bn a year. Ministers then scrapped the relief, which cost the property industry ?800m. However, these latest figures show that the government is now back to handing out near pre-recession levels. articles - General Thu, 22 Dec 2011 09:17:53 +0100 http://www.taxreliefcheckcoming.com/general/empty-rates-relief-is-not-working.html Whether you believe it should stay or go, one thing is clear: the government's policy on empty rates relief isn't working. Between 2005 and 2008, relief cost the Treasury more than ?1bn a year. The year after it was scrapped, this industry's bill leapt to ?800m. New figures from the Communities and Local Government department show that the government's empty property relief bill for the year to March 2011 was?1.1bn (p52). Last year's bill was similar, so not the blip that was claimed at the time. Relief, it's clear, is back to pre-recession levels. At the time it was scrapped ministers argued it would encourage vacant shops, offices and industrial buildings back into use. Critics said it would compound the financial misery of landlords already dealing with the loss of rental income and a sluggish market. It turns out neither argument quite rang true. The industry has made clever use of avoidance tactics, saving itself a significant bill. Ministers might choose to argue that the tax has been successful as these properties have been brought back into use. The truth is that in most cases this has only been on a temporary basis. The British Property Federation wants the charge scrapped and has argued cogently why it should be. However, ministers are seldom for turning, as the debate over the 50p tax band shows. What's needed is a proper, pragmatic discussion about the future of empty rates. If a tax achieves no societal goals, angers those on who it is levied, and costs more than it raises, then what is its purpose? * The Estates Gazette/UK Regeneration campaign Building a Better Britain is gathering momentum. Offers of support continue to roll in and tangible action is already visible. This week a business tasked with helping breathe life back into Ireland's "ghost estates" is preparing to bring the... articles - General Thu, 22 Dec 2011 09:17:53 +0100 http://www.taxreliefcheckcoming.com/general/irs-extends-due-date-for-2010-estate-tax-exemption.html Providing some relief to stressed-out estate planning attorneys and tax practitioners, the Internal Revenue Service announced Sept. 13 that estates of 2010 decedents will have a longer time to file forms to exempt out of the estate tax and may be able to receive a filing extension. In August, the IRS issued a Notice and Revenue Procedure for 2010 estates seeking to exempt out of the tax. Executors can choose to exempt an estate by filing Form 8939, Allocation of Increase in Basis for Property Acquired from a Decedent, applying the new carryover basis rules instead. But Form 8939 – set to be released this month – had an original filing deadline of Nov. 15, 2011, with no extensions allowed, worrying practitioners about complying with the two-month window. Recognizing the need for more time, the IRS announced that executors will now have until Jan. 17, 2012 to file an exemption. “Because this is a change in the specified due date rather than an extension, no statement or form needs to be filed with the IRS to have this new due date apply,” the agency said in a release. The agency also announced two other forms of related relief. While the original Notice provided that no extensions would be allowed for filing Form 8939, the IRS announced that estates may seek an extension using Form 4768. While a six-month filing extension is usually automatically granted, the agency said extensions of time will be granted only for good cause and that most estates will have until March 19, 2012 to file their estate tax return sand pay any estate tax that is due. While no late-filing or late-payment penalties will be due, the IRS said that interest will be charged on any estate tax paid after the original due date. In addition, the agency said that special penalty relief may... articles - General Thu, 22 Dec 2011 09:17:53 +0100 http://www.taxreliefcheckcoming.com/general/irs-tax-relief-to-irene-victims-do-you-qualify.html Americans living in parts of three states hit hard by hurricane Irene have extra time to file certain returns and make tax payments, the Internal Revenue Service announced Thursday. In certain counties of New Jersey, New York, and North Carolina, businesses and residents will have September and October filing deadlines pushed back to Oct. 31. For example: Individuals and businesses who had already received an extension to file their 2010 returns will have their filing deadline extended from Sept. 15 to Oct. 31. Ditto for corporations and businesses who had an Oct. 17 deadline; they can now file as late as Oct. 31. Also, those individuals and businesses making estimated tax payments for the third quarter, normally due Sept. 15, can now make them as late as Oct. 31. Other federal tax transactions can also be delayed. See the IRS announcement for details. Not only do taxpayers in those areas get more time to file their returns, they also won't be charged additional interest or penalties. Typically, a taxpayer who asks for an extension to file his annual return still has to pay an interest charge if he owes the government money. Under the tax relief provision, however, the interest only accrues from April 15 through Sept. 15. There's no extra charge if the taxpayer doesn't file until Oct. 31. "The disaster relief stops the clock on any penalties and interest., says an IRS spokesman. To qualify, residents and businesses must be located in the counties declared federal disaster areas. So far, that includes seven counties in North Carolina (Beaufort, Carteret, Craven, Dare, Hyde, Pamlico, and Tyrell), five counties of New Jersey (Bergen, Essex, Morris, Passaic, and Somerset), and eight counties of New York (Albany, Delaware, Dutchess, Essex, Greene, Schenectady, Schoharie, and Ulster ). "The IRS expects to announce tax relief for taxpayers in other areas as... articles - General Thu, 22 Dec 2011 09:17:53 +0100 http://www.taxreliefcheckcoming.com/general/manufacturing-body-in-call-for-carbon-tax-relief.html THE manufacturers' organisation EEF has added its name to the growing list of bodies calling on the chancellor to introduce a package of tax reliefs for companies who are about to be hammered by the government's ?3.2bn stealth tax on carbon. ASW get In a set of demands ahead of George Osborne's autumn statement next month, the EEF said: "The chancellor must introduce a compensation package which effectively targets those energyintensive industries most affected by its climate change policies." EXCLUSIVE BY DAVID Earlier this month, City A.M. revealed the chancellor was poised to announce such a compensation package in his autumn statement, after intensive lobbying from employers' organisation the CBI. THE CHANCELLOR package firms after he industry with tax in his last City A.M. will help those amounts of energy, aluminium and Treasury source was working energy-intensive John Cridland, of the CBI, told City discussions with exempting some firms from the carbon was "hopeful" the find a resolution. The package will focus "If you're going to price in the UK then sensitive who n on those firms that use large amounts of energy, such as cement, aluminium and steel makers. FREE Industry to get carbontax Osborne came under fierce criticism after he shocked industry by announcing a carbon floor price in his Budget last March, which will raise ?3.2bn for the exchequer by 2016. The Treasury will set a minimum price for carbon even if the market price is lower and collect the difference as taxation. It was labelled a "stealth tax" because the government said it was a green measure while critics argued it was breaks CROW is set to unveil a of tax relief for energy-intensive in his autumn statement, was criticised for hitting with a ?3.2bn carbon stealth last Budget. understands the package those firms that use large energy, such as cement,... articles - General Thu, 22 Dec 2011 09:17:53 +0100 http://www.taxreliefcheckcoming.com/general/pension-assets-in-tax-relief-clampdown.html A CLAMPDOWN on tax relief claimed by companies putting their own assets into their pension funds could raise up to ?2.6bn over six years, the Treasury believes. Normally, parent companies make cash contributions to their employee pension funds, which are then invested in shares, bonds and other assets. But 'asset-backed' contributions - where, instead of cash, the parent company gives the pension scheme property rights to rental income, or even other assets such as brands - have become increasingly popular. Firms including Marks & Spencer, Sainsbury's, Lloyds, John Lewis, GKN and Diageo have made such arrangements, with a total of ?2bn flowing into retirement schemes in the past two years, according to accountants KPMG. Asset-backed deals have been seen as an attractive way to plug a pension shortfall, as in some cases companies have been able to claim double tax relief. For example, a firm might transfer to its pension scheme the right to ?1m a year rent on its property. It can then claim tax relief on the ?1m transfer - and a further tax deduction on the actual rent. But the Finance Bill, due on December 6, will propose measures to end double relief. These will be effective from yesterday. The Treasury reckons the change will yield ?450m in the current year and a total of ?2.59m over six years. Patrick Stevens, tax partner at Ernst & Young, said: 'This is an anti-avoidance measure which will affect relatively few large companies.' articles - General Thu, 22 Dec 2011 09:17:53 +0100 http://www.taxreliefcheckcoming.com/general/president-obama-record-on-taxes.html Right now, President Obama is going all out to extend the payroll tax cut for the middle class -- and expand it for 2012. And that effort underscores an important fact: This President has proposed and enacted thousands of dollars of tax relief for American families and small businesses. In his first year in office, President Obama cut taxes for 95 percent of working families through the Recovery Act with the Making Work Pay tax cut. With that same piece of legislation, he created the American Opportunity Tax Credit -- which is currently helping more than 9 million families afford the cost of college. The Recovery Act also lowered the threshold for refunds through the Child Tax Credit -- providing a tax cut to 11.8 million working families. The President also expanded the Earned Income Tax Credit for families with three or more children -- giving them a tax cut of up to $640 this year. President Obama has passed tax cuts for small businesses 17 times. These measures range from allowing corporation to expense 100 percent of their new investments until the end of 2011 to creating a new deduction for health care costs for the self-employed. And just this week, the President also signed legislation to create tax credits for businesses that hire veterans. If Congress passes the American Jobs Act, a typical family of four would see their taxes decrease an additional $2,325 -- bringing their total tax relief to about $5,425 for the President's first term. That number goes up if the family is helping their kids pay college tuition. That number goes up if the family is helping their kids pay college tuition. This lower tax rate hasn't come about through happenstance. It's a product of hard work from President Obama. Those of us in the middle class have more money in our pockets because... articles - General Thu, 22 Dec 2011 09:17:53 +0100