Tax offset question?
Bonnie S is 100% correct. I had this issue a few days ago when checking on the status of my refund. I searched online, and finally found 800-829-1954, which is the same line as 800-829-1040, apparently. Upon calling, they listed a few possibilities, such as: Federal Tax debt, State Tax debt, Student Loans, Child Support, Alimony, unpaid Court fines, and the list goes on. Apparently, any debt having to do with the government is included in that genre. The good news is: I don't owe anything, and I knew as much. They proceeded to inform me that the system places that warning on the Refund Status page for EVERYONE. No worries here; I didn't get an offset. To be sure, call one of the three listed 800 numbers Monday. Either 800-829-1954, 800-829-1040, or 800-829-7650 will get you to the people to whom you need to speak. Long story short... Call and find out, but for now, rest assured that if you don't know of anything you owe, you will probably get back everything you're expecting!
Student Loan Offset suspended?
If you have defaulted on your student, the federal government has the right to attach your tax refund annually for as long as the loan is in default and there is a remaining balance. If you are in default and you filed your taxes and you were expecting a refund, it's going straight to your loan balance. Now, you can rehabilitate the student loan and stop this offset, as well as future wage garnishment. You can also get all the negative credit reporting removed. You are getting notices each month (probably from two different sources: the Dept of Ed as well as the collection agency handling your loan). If you do not know who is handling the loan, call the 800 on the Dept of Ed notices, go through the prompts and you'll get a toll-free number to call. When you contact the agency that holds your paper, you can arrange to get the loan back into repayment. After nine months of on-time consecutive payments, the loan will be rehabilitated. Negative credit reporting will be removed from your credit report. You will be eligible to go back to school and to borrow again in the program. Remember that the collectors handling your loan are commissioned on how much they can get from you in a lump sum. You don't have to make a big payment. Just tell them what you can afford monthly. They will press you for $1500 or $1000 or even $300 . . . but if you don't have it, just say so. In the meantime, consider your tax refund lost to your student loan debt. I've never heard of anyone advising a borrower in default not to file taxes. That solves nothing and in the long run, just creates additional problems. If you were in the throes of rehabbing the loan, you might have held off, but you are required to file by 4/15, so I doubt it would have done any good. Get your loan into repayment and these troubles will cease.
Received a notice to suspend my tax offset, what does this mean?
You file a tax return, to receive, hopefully, a tax refund Suspension does not mean permanently ended; it may be partially satisfied? Talk to the financial institution which filed to offset and find out just what they mean The BEST way to avoid offsets is to pay one's legal obligations, child support, student loans, federal and state income tax
What happens if we pay income tax in India but do not file a return?
If you have paid all your taxes correctly, then there is no major issue even in you do not / delay in filling your returns. However, in case the income tax department selects your account for scrutiny ( Some of the accounts are randomly selected for scrutiny up to five years after the year in which taxes are payable), they can find you for up to 5000 inr. There are other associated problems you may face such as1. ITR returns of past three years are usually considered by banks for granting loans. So you might face issues there2. Losses in the current years cannot be carried forward to the next year for offsetting against losses in future years3. The scrutiny of income tax authorities are said to be higher on accounts for which returns have not been filed, so you might have a higher chance of coming in the scrutiny net of the department, which is always a pain as you might not be filling your proofs etc and might forget the relevant details by the time they start their scrutiny. Up to 5 years remember.4. Also ITR filling is an excellent time on understanding how much income tax you are paying and what are the opportunities to save tax. I would suggest you use it as such by filling it up in an informed manner. (That means a lot of Google and other searches in addition to just filing your returns)
Where's My Refund "Tax Topic 203"? does eveyone's status say this?
So it says my refund was sent on March 7th, but underneath it, it also says this,.... Please read the following information related to your tax situation: Tax Topic 203 - Failure to Pay Child Support, Federal Non-Tax and State Income Tax Obligations Please Note: Your refund may be reduced to pay a past due obligation such as child support, another federal agency debt, or state income tax. If this applies to you, the Financial Management Service, who issues IRS refunds, will send you a notice informing you of any offset they have made. The details of the debt are not provided to the IRS. Please do not call us to inquire about the details because we will not be able to answer your questions. Instead, direct any questions you have about the offset or debt to the agency identified on the notice... does everyones status say this as a warning?, cuz the only debts i have is on my gas credit card($125)....does that count? or are they talking about loans and stuff like that.
Does employee get salary during notice period?
When an employee resigns he/she is normally obliged to work out the notice period that is stated in his/her contract of employment or that is required by law. This is because the purpose of a notice period is to allow you to find a replacement and ensure there is a smooth hand-over so business can continue without interruption despite the employee’s resignation. If your employee resigns without giving you notice as required by law or in terms of the employment contract, he/she is in breach of contract and you don’t have to pay notice pay in such a situation. If, after he's/she’s given notice, the employee doesn’t work out her notice period you don’t have to pay her (no work, no pay). If the employee gives late or short notice that’s a breach of contract, you can either hold the employee to what’s left of the contract or cancel and sue for damages. If the employee doesn’t give proper notice and you choose to hold her to the contract, then the contract terminates after the full period of the notice. You will get your salary as you get in normal course. But, if you resign without serving the notice period, then the company is entitled to recover the notice pay. The Company will not hod your salary for all the 3 months or notice period. if it holds, then it is illegal.
Where's My Refund "Tax Topic 203"? does eveyone's status say this?
I used to have a debt to the Department of Education (student loans) and they will take your tax refund until you have paid them in full. However, if you have filed jointly with a spouse, you can file a form 8379 (even after they offset) and you will at least get some money. Of course, you need to check to be sure there is actually an offset first. Good luck! BTW...I finally got tired of having all the hassle and dealing with the offset and contacted the Dept of ed. They helped me get my loans rehabilitated and then refinanced. They took all the negatives off my credit report, too. They aren't too bad to work with. If you want to check out your options, just go to http://www2.ed.gov/offices/OSFAP/DCS/index.html
What does code 1242 and 1201 mean on WMR status?
When I checked the status of my refund I got this message............... There is a delay in processing your tax return. For more information, please continue. If you have questions or need additional information, please have the following on hand when you call: A copy of this page. A copy of your tax return. The Social Security Number, Filing Status, and refund amount claimed on your return. Any notice that you have received concerning your refund. Please mention reference number 1201 to the IRS Customer Service Representative. My brother received this message................ We have received your tax return and it is being reviewed. For more information, please continue. Please read the following information related to your tax situation: Tax Topic 151, Your Appeal Rights If you have questions or need additional information, please have the following on hand when you call: A copy of this page. A copy of your tax return. The Social Security Number, Filing Status, and refund amount claimed on your return. Any notice that you have received concerning your refund. Please mention reference number 1242 to the IRS Customer Service Representative. Does anyone know what theses codes mean and how long before we get our refunds. I filed in April, he filed in June. We have contacted the IRS and they are giving the run around. HELP PLEASE!!!
Is it mandatory to file Income Tax Return if I have a PAN but no income?
If you were to consult an auditor he might say NO to filing taxes since you don't have income at present, but he doesn't know your future plans, which might include the plan to go abroad for higher studies or that once you start investing you might make losses and you need to offset them. Due to these circumstances, there are benefits of filing tax returns and you should do so.The biggest benefit is that it helps when you apply for a loan in future or when you apply for a visa. For any home loan, vehicle loan, car loan, etc, most lenders ask for proof of tax returns of the previous three years. So, if you have just entered the work force and at Rs 20,000 a month, your annual salary is below the taxable limit of Rs 5.0 lakhs, you are not required to file returns. But, it is useful to do so because you can build proof of your finances. Even if you are applying for a loan as a co-borrower, the return will serve as proof of your income.Similarly, if you are planning to travel abroad, tax returns are required while applying for a Visa. For Schengen Visa, it is mandatory to support visa documents with the last 3 years of tax filing, even if it is zero income.Another reason why it is mandatory to file returns is to claim tax refund or set off losses. For instance, if you have suffered losses from stock market transactions and you want to carry it forward to the next year, you must file for a refund, even if your annual income is below the taxable limit.In another instance, despite your income being below the taxable limit, your employer has cut TDS (tax deducted at source), 0r you earned some money through freelance work and the company deducted TDS at 10 per cent. But since your income is lower than the taxable limit, you are entitled for a refund. For claiming this refund, you have to file a return.Considering all these future benefits, it is better to file your tax returns from this year.
What does "arrears" mean in regards to child support?
Arrears are debts that are due but not paid, as opposed to future obligations.When a support order is set, it has an "effective date". The payments are set (often some time after the fact due to delays in the court system), but once they're set, they accrue from that effective date. To give the simplest answer to the question, the amount of arrears is the amount of accrued child support less the amount that has been paid. When modification comes into play, sometimes an order will be reduced, and if that happens, the arrears will be adjusted as well.Example: Sue comes into court against Dick for support on 1 August. They have a conference on 25 August, and they agree that the amount of support payable is $ 300 per month. Dick is paid bi-weekly at his job, so he cannot make a payment until 7 September, his next payday. However, the order that was set began on 1 August so there will be about $ 370 in arrears by that time that has accrued and hasn't yet been paid. Now let's assume that Dick pays $ 150 out of each of his next five paychecks (a little bit more than $ 300 per month because a month is more than 4 weeks). He's paid $ 750 and now it's ten weeks later, or 16 November, and the total amount of support that's accrued on the order is $ 1060, so his arrears are down to $ 310. Dick misses a payment, and the arrears go back up to $ 460 on 30 November. And so forth.This definition of "arrears" applies to any type of debt to be paid in periodic installments, though support is probably where we see the term the most.