My friend is only getting back 500 dollars on his federal income tax return...why?
Ok, so my friend did not work much last year and made only 1200 dollars in wages and had about 50 dollars of that withheld for federal income tax. He has a kid, so his girlfriend thinks he'll automatically receive 3500 dollars back. I told them that he has to have made a certain amount in that year, which he didn't. When he submitted his taxes online, he would have gotten about 500 dollars back, but his girlfriend didn't think that was enough and he stopped it so he could redo it later. I've done tax calculations for them online, and no matter what is done, 500 dollars is the most he'll get as a refund. However, I don't think they'll believe me since they didn't believe me the first time. Should I just let them figure it out on their own or tell them what I have discovered? I may be wrong, so I don't want to say anything. Any advice? Thank you.
My friend has never filed taxes, will he owe money?
If he's been working for more than a couple of years at jobs where taxes are withheld from his pay and has not heard from the IRS yet it's a virtual certainty that he doesn't owe any taxes for the prior years. Most likely he has refunds coming for those years but unfortulately he can only get them for tax years 2004 through 2006. 2003 and earlier years are now closed and any refunds from those years are forever lost. You must file and claim any refund within 3 years of the filing deadline for the tax year in question or you lose your right to your money. If his income was below the filing requirement amount in any past year there is no need to file except to claim a refund of any taxes withheld. If he had "under the table" income in the past it's possible that the IRS does not know about it. However there is a definite risk that they will find out about it someday and come looking for it. The statute of llimitations clock does not start ticking until you file your return so those years are essentially open forever until he filles if his income exceeded the filing requirement amount in any of those years. Needless to say that could be expensive now since he will be hit with penalties for late filing and penalties and interest for late payment of tax. That could double or even triple what he owes if it's carried out long enough. He should file any missing returns quickly. The deadline for a refund from 2004 is next April. File the returns that show a refund first and follow through with any that have a debt. Hang onto any refunds until everthing is filed and the dust settles on any debt if there is one and use the refunds to pay down as much of the debt as possible.
Do I need to pay tax in India if a friend transfers $25000 to my Indian bank account?
As India has Double Taxation Avoidance Agreements with most of the Countries, The purpose of DTAA is that taxpayers can avoid paying double taxes on their income earned from the source country as well as the residence country.So the Income is taxed in US will be not taxed in India. But if Any one receives any amount of more than 50,000/- INR it is taxable as gift unless it is received from the relative.Relative means as per Income tax act(i) spouse of the individual;(ii) brother or sister of the individual;(iii) brother or sister of the spouse of the individual;(iv) brother or sister of either of the parents of the individual;(v) any lineal ascendant or descendant of the individual;(vi) any lineal ascendant or descendant of the spouse of the individual;(vii) spouse of the person referred to in clauses (ii) to (vi)Read more at WWW.CAMAN.IN
My friend said he is going to lie on his income taxes?
I assume he's trying to maximize his EIC? That would be the only way to get a bigger refund by claiming additional income. Yes, the IRS will catch on. They will probably catch on right away because the companies who pay him are under reporting obligations and their W-2s and 1099s will not match up to his total income, which will trigger an audit. When they audit him, they will send him a Notice of Deficiency to get the refund back, and impose penalties and interest on top of it. He will also lose his EIC filing privileges for many years.
If someone who is not an Indian or NRI send money from abroad to my normal Indian savings account, will it be taxable?
I have many of my friends working and living in abroad and when you go abroad for the very first time, you have a lot of questions in your mind, related to the NRI status, Taxing structure in that country, remittance and Tax structure and Tax rules in India. One of the most common questions I see is "When you transfer funds from an Overseas bank to a Regular Saving account in an Indian bank, are they taxable?", the answer actually is No, provided you fulfil the criteria to be an NRI i.e. you have stayed more than 182 days abroad in that financial year (31st March to 1st April).Since you have already paid tax on that amount in the respective foreign country you are earning and currently staying e.g. UK, US or Australia, you are not required to pay further tax on the same money, whether you keep them in the respective foreign currency or Indian Rupees; but there are other things to consider. For example, the reason to transfer your foreign currency in India? Who’s the person holding that saving account etc.? If you are planning to transfer funds from overseas to your parents for their personal expenses, you should directly transfer it to their residential savings account, there won't be any further tax applied on that amount. In short, when you transfer foreign currency from abroad to India using any foreign exchange or money transfer services, no taxes are to be paid on that amount if you are NRI. In case if you are not NRI, then you will eventually have to pay tax on the income earned in foreign countries but you can anytime claim against the tax you paid overseas.c����
If you lend a friend money, what usually happens?
Did you have them sign an I.O.U.? Did they pay you back? Did you stay friends? I've loaned people money, and one girlfriend was really, really good to pay me back, but my usual experience is that I don't get paid back. I even lost a friend I'd known for over 10 years who I thought was a great, responsible friend who really cared about me. I lost him because I loaned him $300 to save his house from being repossessed (this gave him one more month to raise more money) so he should have been grateful, but was he? It was over a year and he only paid me like $20 or $50, and I really needed it back so when I heard he had some money, I went and asked him, nicely, to pay me because my car needed repairs. He did pay me, but he then proceeded to start a fight and wasn't my friend anymore. I wish I'd never loaned him a dime, maybe I'd still have the friend. Thanks in advance for your answers and stories. Live well and do good.
My friend has 15 lakh black money with 6 bank account s where 3 pays income tax? What can he do to save his hard earned money?
I would like to comment on two answers here One by Him BuvariyaThe route proclaimed by Him Buvariya is nearly overlooking the sections of IT Act.While accepting cash loans from Family members or any one sec 269ss has to be given due consideration. the route offered is near to putting you in more trouble than you already in . the route violates the provisions of sec 269ss and can attract the provisions of sec 271D where fine is an amount equal to the loan taken in Cash .I think he must have overlooked the fact,but saw that more than 750 people have read the misguiding info,so have to make it clear. & One by Rajbir Singh ChawlaThe answer must be upvoted and its more of a mature reply to the question. He is at least considering the factors before giving a guidance. And it’s quiet anarchy to see the answer which portrays the logic seems to viewed less.
If I am transferring $25,000 to a friend's bank account, does he have to pay tax on that amount? Will it be treated as a gift?
Let’s make the simplifying assumptions that we are dealing with U.S. persons residing in the U.S. and transacting in U.S. after-tax dollars. We have limited facts here and it is not feasible to address every possible factual permutation.Now, with due respect to fellow CPA Wray Rives 2012 answer, this is not a gift unless there is donative intent. There must be donative intent to characterize this as a gift under the U.S. tax code (Commissioner v. Duberstein, 363 U.S. 278 (1960)).Consider this totally realistic scenario: Suppose I agree to do a favor for a good friend and he wires $25K to my checking account so I can pay his rent and utility bills and take care of his dog while he takes an extended vacation and travels the world. This would not be a gift to me, this would not be a loan to me and it would not be income to me. It is nothing other than a convenience bailment, and I would, of course, keep receipts and refund whatever remains when my friend returns.This entire private arrangement between private parties would be of no concern to the government whatsoever - and therefore absolutely no harm to the federal fisc.The larger point is that you must ask relevant questions to uncover the nonobvious facts and intent of the parties for a complete understanding of the transaction before jumping to conclusions. Otherwise you look like an asshole because things are not always what they appear to be on the surface.
I have a friend who hasn't filed taxes for about 5 years. He seems to think he's above the law.?
What will eventually happen to him? When does the IRS finally contact these folks and force them to file/pay, etc.? It's very frustrating to watch him get away with this, or, is he? Can any one please advise me... I'd like to be able to tell him what can happen if he doesn't file... Thank you.