Is sales tax charged on Income tax preparation in Ohio?
January 28, 2009 by Tax Blog
Filed under Questions & Answers
When someone gets their income taxes done (specifically in Ohio) is there a sales tax that is added to the cost of the preparers fees. If so is it charged on the total amount due/refunded or on the charge for the tax preparation itself?
Asked Too Late
January 27, 2009 by Tax Blog
Filed under Questions & Answers
Today TaxMama hears from Thomas in Ohio with this question. “I have been married four years. My wife owned her own home before our marriage and we lived there for the last four years. I was never on that title. Now we purchased a home together to live in and have kept her previous home for a rental. Am I eligible for a first time homebuyer credit?”
Hi Thomas,
What you’ve done makes good financial sense.
Unfortunately, it won’t get you the First-Time Homebuyer Credit.
I wish you had spoken to a tax professional before buying this home. If you had bought it with only you on title, you would have qualified. But with both of you on title, you lose the credit.
If either of you owned a personal residence, you’re both disqualified. Unfortunately. This is something I’ve discussed at length with IRS.
http://www.irs.gov/newsroom/article/0,,id=186831,00.html
Taxpayers who owned a main home at any time during the three years prior to the date of purchase are not eligible for the credit. This means that first-time homebuyers and those who have not owned a home in the three years prior to a purchase can qualify for the credit.
So sorry to be the one to give you this information.
That’s why I emphasize the importance of consulting with a good tax professional before making major financial moves.
And remember, you can find answers to all kinds of questions about the first time homebuyer credit and other tax issues, free. Where? Where else? At TaxMama.com
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do i have to file city income tax for chicago?
January 23, 2009 by Tax Blog
Filed under Questions & Answers
I am originally from Ohio and I’m pretty sure we had to file city, state and federal taxes individually. In Chicago though I don’t know if I have to or not. I have filed federal and state but all of my searches online for city taxes have only turned up info for property taxes. I used to have my taxes prepared for me in Ohio but they don’t know Illinois tax laws.
I do not own a house or business either. Just wondering how the tax system works out here and whether federal and state is all I am required to file for.
Solvency Recommendations for Ohio
This report examines the funding of unemployment insurance (UI) in Ohio. It proposes seven recommendations to improve program solvency, both in the short run and in the long run. The two main recommendations to improve short-run solvency are to: 1) implement a substantial increase in the taxable wage base and 2) institute a temporary freeze in weekly benefits, both recommendations to be effective in 2009. Indexation of the taxable wage base is a principal recommendation to improve solvency in the long-run.