...Working Income Tax Benefit Paper for TAXX 344 Executive Summary Since 2008 most Canadians have heard about the Working Income Tax Benefit. It was introduced in 2007 by the Canadian Government as an incentive for those living on social assistance to enter the job market and those in the job market to continue working. The underlying principle is to give a reduction in income taxes to those who earn income from employment or self business to help offset the costs of entering the job market as opposed to living on social assistance. Offsetting costs such as medical and dental costs, work supplies etc. The cost of leaving social assistance and working is referred to as the welfare wall. The working income tax benefit was introduced at a low rate of $500 for individuals and $1,000 for families which considering the maximum net income cut-off amounts did not include the target audience of those who are on social assistance. Thanks to Canada's Economic Action Plan to help stimulate the economy during the Late 2000's Recession the Government provided what they called and enhancement and increased the benefit to $925 for individuals and $1,680 for families and increased the maximum net income levels to include more Canadians. The working income tax benefit is discussed in section 122.7 of the Canadian Tax Act and tax payers use Schedule 6 of the T1 tax return to calculate the benefit based on their earned income and calculates on a sliding phase in rate of 25% and phase...
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...jail or both. Student (& Spouse if married) Parent(s) (if dependent) Payments to tax-deferred pension and savings plans as reported on the W2 _____________ Form in Boxes 12a through 12d, codes D,E,F,G,H or S. ____________ Child support received for any children. This includes money you received from a non-custodial parent that is not part of a legal child support agreement. Do not include foster care payments, adoption payments, or any amount that was court_____________ ordered but not actually paid. ____________ Housing, food, and other living allowances paid to members of the military, clergy and others. Include cash payments and/or cash value of benefits received. Do _____________ not include value of on-base military housing or basic military allowance for housing. ____________ Veteran’s non-education benefits, List total amount of veterans non-education benefits. Include Disability, Death Pension, Dependency and Indemnity Compensation _____________ (DIC), and/or VA Work-Study allowances. Any other untaxed income and benefits: List the amount of other untaxed income. Include: workers’ compensation, disability, Black Lung Benefits, amounts from IRS Form 1040 Line 25, Railroad Retirement Benefits, etc. Do not include student aid, Earned Income Credit, Additional Child Tax Credit, Temporary Assistance to Needy Families (TANF), untaxed Social Security benefits, Supplemental Security Income (SSI), Workforce...
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...About Results: Results, is a movement of passionate, committed everyday people. Together they use their voices to influence political decisions that will bring an end to poverty. The volunteers at Results receive training, support, and inspiration to become skilled advocates. Over time, volunteers learn to successfully advise policy makers, guiding them towards decisions that improve access to education, health, and economic opportunity. Multiply their impact through the massive power of advocacy whether it’s helping change policy to support millions of families putting food on the table or helping raise billions of dollars for the world’s most vulnerable children. Backed by the in-depth research and legislative expertise of staff, Results advocates realize the incredible power they possess to use their voices to change the world. They are a nonprofit and grassroots advocacy organization. That pushes for specific policies and legislation to address poverty and empowers people to become powerful voices for the end of poverty through grassroots advocacy. U.S Poverty Campaign: Results works to make a substantial difference in breaking the cycle of poverty in the United States while at the same time ensuring that our small but very engaged grassroots network makes a strategic impact; a couple of their main focuses are creating economic mobility: building ladders out of poverty, keeping food on the table: protecting federal nutrition programs, and empowering grassroots activists:...
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...have health insurance or face a fine as constitutional, qualifying the provision as a tax. (Rapoza) While the commission covered by the Affordable Care Act is an imperfect system that does not mean it is not a good one. All of the minor details of the tax penalties the government will implement against those who do not have health insurance are not easy to decipher. The hospitals and health care providers feel very positive about this law because they are guaranteed patients who guarantees payment from the federal government, which should also mean premiums will go down as a result. I have no idea how people can claim that health insurers will suffer. In Massachusetts, they live under the predecessor of ObamaCare — the Massachusetts Healthcare Reform Act, signed into law by former governor Mitt Romney in 2006. (Rapoza) Under RomneyCare, 98 percent of Massachusetts’ residents have affordable health insurance. (Rapoza) Meanwhile, Massachusetts has not gone broke. Its unemployment level is currently 6 percent, better than the national average of 8.3 percent. (Rapoza) Companies are not going belly up because of RomneyCare. Private insurers operate in the state alongside the non-profit health insurers like Harvard Pilgrim and Blue Cross Blue Shield. (Rapoza) There have not been massive layoffs in the industry because of the law. According to the Annenberg Public Policy Center, the minimum tax assessment will be $695 per person and no more than $2,085 per family when the law goes...
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...Assignment 2 (25 points) Assignment 2: Financial Planning Instructions Save this file in your course folder, and name it with Assignment, the section number, and your first initial and last name. For example, Jessie Robinson's assignment for Section 1 would be named Assignment1JRobinson. Type the answers to the assignment questions below. Use complete sentences unless the question says otherwise. You will have more than one day to complete an assignment. At the end of each day, be sure to save your progress. Review Lesson 4 of the Course Overview for instructions about turning in your assignments. Assignment Questions Describe one short-term goal that you have and at least one thing you will need to do in order to accomplish that goal. (2-4 sentences. 1.0 points) I have always wanted to pay off my phone bill monthly, and the thing, I did to accomplished it was getting a job. 2. Describe one long-term goal that you have and at least two things you will need to do in order to accomplish that goal. (2-4 sentences. 1.0 points) One long-term goal that I have always wanted to accomplish is to finish college, with “A”s and no student loans. The two things that I did to accomplish this is saving money and studying. 3. Describe two of your long-term financial goals, and explain why these goals are important to you. List at least three steps that might help you accomplish this goal. (4-6 sentences. 2.0 points) Two long-term of my financial goals is to save...
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...University of Phoenix Material End of the 20th Century Matrix Choose ten items from the following list and identify their significance during the 1990s and beyond: |Earned Income Tax Credit |Economic prosperity under Clinton | |E-mail |Creating a budget surplus | |NAFTA |The Internet and the World Wide Web | |Telecommunications |The Brady Bill | |Somalia and Rwanda |Apple | |Internet marketing |Digital divide | |Kosovo |Don’t Ask, Don’t Tell | |Cell phones |Microsoft | |Event |Significance | |E-mail |E-mail has made it a lot easier for people to send letters...
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...1 The Welfare Reform Act Paula Foreman HCR/230 December 9, 2012 Santresa Sanders 2 The Welfare Reform Act caused many existing Medicaid beneficiaries to lose necessary coverage. The delinking of Medicaid to AFDC (Aid to Families with Dependent Children) has resulted in the changes in the eligibility requirements to obtain Medicaid benefits. The old format would enable an eligible welfare applicant automatically eligible for Medicaid. Today this is not the case. TANF (Temporary Assistance for Needy Families) a new block grant has higher eligibility requirements, therefore resulting in a decrease in people who are now on Medicaid. TANF has put emphasis on diversion and job emphasis which has also steered people away from Medicaid. The economy has made job finding easier. Incomes were raised which led to some applicants and beneficiaries no longer meeting income tests or eligibility requirements for Medicaid. When these changes were made, the number of people on Medicaid decreased greatly resulting in numerous people being ineligible for Medicare or the present recipients losing Medicaid that was necessary to cover their medical expenses due to their medical issues. The changes caught many by surprise Although the Welfare Reform Law does not alter how Medicaid offers health care or it’s entitlement status, it does minimize the number of people covered, thus lowering federal expenditures. Eligible Medicaid candidates...
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...best interest for the organization d. Does an attorney need to sign the organization documents for a Corporation? No, but it may be in the best interest for the organization e. What are the filing fees associated with filing an LLC and a Corporation? $110 for both and the CL-1 is $25 f. Are there annual fees to be paid to the state for an LLC or Corporation? Both LLC and Corporation have to pay $10 fees g. Does a Corporation doing business in SC but formed in another state have to register with the State of South Carolina? Yes, they are required to register every location that their business resides in h. Does a General Partnership have to file anything with the Secretary of State? No. 2. BUSINESS LICENSES AND TAX REGISTRATION For this portion- I chose to run an S CORP for my liquor store which sells tobacco, wine, and liquor. My three employees are my cashier, stocker, and manager. a. In Charleston, all businesses are required to have an annual business license for each location. There is a five step process for obtaining this business license. First- Zoning Compliance. The city encourages every business to confirm the zone and physical layout of the building they buy, lease, or commit to. Second- Renovations might require permits so make sure you have an understanding in which projects will require permits. The City’s Building Inspections Department will confirm if one is needed. Third- Business License Certificate of Occupancy Application...
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...org/issues/2008/01/eitc_101.html Congress originally approved the tax credit legislation in 1975 in part to offset the burden of social security taxes and to provide an incentive to work. The earned income tax credit was also responsible for significant declines in poverty and economic gains during the 1990’s. The earned income tax credit is a refundable tax credit that has been designed for those individuals who are at an economic disadvantage within the workforce. This credit provides tax equity to the working poor which allows the taxpayer to be reimbursed for certain federal taxes such as gasoline and social security taxes. For example, this credit would be able to compensate for the costs of transportation. To qualify for the earned income credit, one must Have a valid social security number Have earned income from employment or from self-employment Not have a filing status of married, filing separately Be a U.S. citizen or resident alien all year or a nonresident alien married to a U.S. citizen or resident alien and filing a joint return Not be a qualifying child of another person Cannot file form 2555 or 2555-EZ related to foreign earn income Meet these income thresholds: $38,646 ($41,646 married filing jointly) with two or more qualifying children; $33,995 ($36,995 married filing jointly) with one qualifying child; $12,880 ($15,880 married filing jointly) with no qualifying children. John and Sandy’s total earned income filing jointly totals $33,000 ($25...
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...eXpress customer service line, be as specific with your issue as possible. Providing specific, detailed information is critical for a timely resolution. Please note, your electronic W-2’s are viewed in Adobe and only one page appears at a time. It is IMPORTANT to know you will have multiple pages within your electronic W-2 file. Please read the notice to employee and instructions printed as a supplemental page with your electronic Form W-2. This information has been furnished by the IRS and includes information regarding Earned Income Credit (EIC), corrections and more. IMPORTANT INFORMATION ABOUT EARNED INCOME TAX CREDIT Based on your annual earning, you may be eligible to receive the Earned Income Tax Credit from the federal government. The earned income tax credit is a refundable federal income tax credit for low-income working individuals and families. The earned income tax credit has no effect on certain welfare benefits. In most cases, earned income tax credit payments will not be used to determine eligibility for Medicaid,...
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...PERSONAL INCOME TAX IN THE UNITED STATE Group’s member:Nguyễn Như Nam (C)Phan Thu AnNguyễn Thùy DungHoàng Bá SơnNgô Thị Ánh TuyếtDate: 15/12/2014 | Table of Contents PART 1. The review on the tax system in the United States 2 1. The tax administration system in United States 2 2. The tax policy system in United States 3 PART 2. The review of the main content of the tax laws 5 I. The scope of application 5 1. Taxable incomes 5 2. Non-taxable 7 3. Payers. 7 II. The taxation bases 9 III. The tax calculation method 10 1. Gross Income 10 2. Adjusted gross income 17 3. Tax Credits 17 4. Tax Rates 20 5. Deductions and exemptions 22 IV. Tax declaration, submission and refund 32 1. Declaration 32 2. Submission 33 3. Refund 34 REFERENCES 36 PART 1. The review on the tax system in the United States Taxation is an important for each country. Taxation provides a material to distribute economic resources towards those with low incomes or special needs. Taxes provide the revenue needed for critical public services such as social security, health care, national defense, and education. 1. The tax administration system in United States The U.S. system of tax administration is based on the principle of self-assessment. In a self-assessment system, taxpayers calculate and pay their own taxes without the intervention of a tax official. If this is not done appropriately and within the prescribed timeframes, the tax administration...
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...Chapter 8 Individual Income Tax Computation and Tax Credits SOLUTIONS MANUAL Discussion Questions 1. [LO 1] What is a tax bracket? What is the relationship between filing status and the width of the tax brackets in the tax rate schedule? A tax bracket is a range of taxable income that is taxed at a specified tax rate. Because only the income in the particular range is taxed at the specified rate, tax brackets are often referred to as marginal tax brackets or marginal tax rates. The level and width of the brackets depend on the taxpayer’s filing status. The tax rate schedules include seven tax rate brackets. The rates for these brackets are 10%, 15%, 25%, 28%, 33%, 35%, and 39.6%. In general, the tax brackets are widest for Married filing jointly (for example, more income is taxed at 10%), followed by Head of household, Single, and then Married filing separately (the brackets for Married filing separately are exactly one-half the width of the brackets for Married filing jointly, and the width of the 10% and 15% brackets for Single and Married filing separately are the same). 2. [LO 1] In 2014, for a taxpayer with $50,000 of taxable income, without doing any actual computations, which filing status do you expect to provide the lowest tax liability? Which filing status provides the highest tax liability? For a taxpayer with $50,000, the married filing jointly filing status should provide the lowest tax liability in 2014 because the MFJ tax rate schedule taxes more...
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...Mr. Donald Dewey 4321 Mt. Vernon Road Dover, DE 19901 Dear Mr. Dewey, As you have asked me for advice on the matter of Income tax last time we met at the local Chamber of Commerce, included in this letter is the information you requested. Facts: Don and Mary Dewey are successful professionals who have a combined AGI of approximately $400,000. Their household includes two children: Debra (age 16) and Van (age 23). Van is not a student but works a part time job where he earns $16000. The father Don wants to know if Van (his son) can claim Debra (his younger sister) as a qualified child for income tax purposes. Issue: If Van can treat Debra as his qualifying child, he qualifies for a dependency exemption, the child tax credit, and the earned income tax credit. On the other hand, if you and your wife claim Debra, the only benefit available to you is the dependency exemption. The reason being is that your income is too high to permit the use of either the child tax credit or earned income tax credit. Although the dependency exemption yields a greater tax benefit to you than to your son Van, the tax saving is by far outweighed by the unavailability of the two credits. For that reason, the family would save taxes if Van claims Debra as his qualifying child. In such a case, you would have to forgo the dependency exemption for Debra. Analysis: A qualified taxpayer may claim a person as a qualified child only if he or she has an AGI that is higher than the AGI of the...
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...Mr. Donald Dewey 4321 Mt. Vernon Road Dover, DE 19901 Dear Mr. Dewey, As you have asked me for advice on the matter of Income tax last time we met at the local Chamber of Commerce, included in this letter is the information you requested. Facts: Don and Mary Dewey are successful professionals who have a combined AGI of approximately $400,000. Their household includes two children: Debra (age 16) and Van (age 23). Van is not a student but works a part time job where he earns $16000. The father Don wants to know if Van (his son) can claim Debra (his younger sister) as a qualified child for income tax purposes. Issue: If Van can treat Debra as his qualifying child, he qualifies for a dependency exemption, the child tax credit, and the earned income tax credit. On the other hand, if you and your wife claim Debra, the only benefit available to you is the dependency exemption. The reason being is that your income is too high to permit the use of either the child tax credit or earned income tax credit. Although the dependency exemption yields a greater tax benefit to you than to your son Van, the tax saving is by far outweighed by the unavailability of the two credits. For that reason, the family would save taxes if Van claims Debra as his qualifying child. In such a case, you would have to forgo the dependency exemption for Debra. Analysis: A qualified taxpayer may claim a person as a qualified child only if he or she has an AGI that is higher than the AGI of the...
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...What's New This Year Publication 5101 All tax preparers, Quality Reviewers, instructors, and Site Coordinators must pass the Intake/Interview and Quality Review test. Income Virtual Currency The IRS announced that convertible virtual currencies, such as Bitcoin, would be treated as property and not as currency, thus creating immediate tax consequences for those using Bitcoins to pay for goods and services. Taxpayers having transactions in virtual currencies are out of scope for the VITA/TCE programs. Standard Deduction The standard deduction for taxpayers who do not itemize deductions on Form 1040, Schedule A, has increased. The standard deduction amounts for 2015 are: * Married Filing Jointly or Qualifying Widow(er) - $12,600 (increase of $200) * Head of Household - $9,250 (increase of $150) * Single or Married Filing Separately - $6,300 (increase of $100) Taxpayers who are 65 and Older or are Blind For 2015, the additional standard deduction for taxpayers who are 65 and older or blind is: * Single or Head of Household - $1,550 (no change) Married taxpayers - $1,250 (increase of $50) Personal ExemptionsThe amount a taxpayer can deduct for each exemption increased to $4,000 for 2015. | Standard Mileage For 2015, the following rates are in effect: * 57.5 cents per mile for business miles driven * 23 cents per mile driven for medical or moving purposes 14 cents per mile driven in service of charitable organizations (no change) ...
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