HDTenEightyP/NetNews huggingface dataset:
From: sbrenner@cbnewsb.cb.att.com (scott.d.brenner)
Subject: Yikes! Am I Facing a Tax Penalty?
Organization: AT&T
Distribution: usa
Date: Sun, 13 Dec 1992 21:35:32 GMT

I was just looking at my wife's and my last paycheck for 1992 (We're
paid monthly and will receive our December pay in January of next
year.)  This is the first year that we contributed to our 401(k)
plans, thus reducing our taxable income.  I calculated the taxes
that were withheld as a percentage of wages earned and got a little
frightened at what I saw.

Here's the data:

	wife's Federal Tax:	19.56% of taxable wages
	wife's FICA:		 7.23% of total wages
	wife's New Jersey Tax:	 3.92% of taxable wages

	my Federal Tax:		13.84% of taxable wages
	my FICA:		 7.65% of total wages
	my New Jersey Tax:	 3.37% of taxable wages

Here are my questions:

1. Based on our combined income, and our filing status of 
   "Married filing jointly," we are in the 28%/31% bracket.
   I forget if FICA is considered "part of" the 28%/31%, but
   I think it is.  My wife's combined Federal tax plus FICA
   is about 26.5%.  My combined Federal tax plus FICA, though,
   is only 21.5%.  Why isn't it higher?  We didn't change our
   withholding allowances from last year.  Has my employer
   taken out enough tax for me?

   I'm aware that a penalty may be due if something like 90%
   of last year's tax amount isn't withheld and/or we end up
   owing more than a certain dollar amount. (I forget what it
   is.)  Am I in trouble here?

2. I thought that FICA was 6% social security and 1.65% Medicare/
   Medicaid.  My percentage (7.65) was right on the button.  Why
   is my wife's not the same (7.23)?

3. For my fellow New Jerseyites:  I though the State income tax on
   people in the salary range of my wife and I was more like 6%.
   Should I be concerned that only 3.92% has been withheld from
   my wife and only 3.37% has been withheld from me?  Am I going
   to be in trouble with Trenton?  Does New Jersey impose a 
   penalty similar to the Federal one if not enough tax was
   withheld?

4. IS THERE ANYTHING I CAN DO RIGHT NOW BEFORE THE END OF THE
   YEAR TO AVOID PENALTY PAYMENTS NEXT APRIL 15?

   I heard there was a form available from the IRS that would
   let you calculate your 1992 Federal tax due.  Does anyone
   know the form number?

   If I can get a fairly accurate estimate of my tax bill and
   I find that my wife and I have NOT had enough withheld to
   avoid penalties, can I make a tax payment NOW (prior to the
   end of the year) that would let us avoid a problem in April?
   Or am I pretty much screwed at this point?


I'd appreciate any information or pointers that you could give
me.  Please respond directly to sbrenner@attmail.com if possible
so I can read your message right away.  I'll try to summarize
the reponses and post them in a few days.


a T d H v A a N n K c S e

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Scott D. Brenner
AT&T Consumer Communications Services
Basking Ridge, NJ
sbrenner@attmail.com
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
From: RMCCOY%RCKHRST2.BITNET@SHSU.edu
Newsgroups: misc.taxes
Subject: Tuition Assistance
Date: 15 Dec 1992 13:58:53 -0500 (CDT)
Organization: Fedtax-L<==>Misc.Taxes Gateway
X-Gateway-Source-Info: Mailing List

Can anybody tell me if tuition reimbursement or tuition remission for
graduate students is taxable to the employee/student?  I thought that
employers could provide up to $5,250 of tax-free tuition assistance per
year.  However, code section 127 expired on June 30, 1992.

I have about $4,000 of tuition remission this year, ($1,600 after June 30)
and want to know about the tax liability.

Thanks.
Roger
Newsgroups: misc.taxes
From: an2355@anon.penet.fi
Subject: Gambling as a Professional
X-Anonymously-To: misc.taxes
Organization: Anonymous contact service
Date: Wed, 16 Dec 1992 15:48:53 GMT

As a follow-up to my previous questions -- Some
of the people I gamble for also gamble for me.
However, in some cases, although they expend
considerable energy gambling to make a profit
(ie. not as a hobby) and keep good records,
they do not gamble as their primary source of
income.

Would they nonetheless qualify to deduct losses
in excess of winnings?  Specifically, I'd like
opinions on whether it is "primary source of
income" or "gambling for others" that is more
important in qualifying.

Would it help if we formed a partnership or a
corporation?

Thanks again,
        Jason

-------------------------------------------------------------------------
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From: elliott@aero.org (Kenneth B. Elliott III)
Newsgroups: misc.taxes
Subject: Tax forms for 92
Date: 12 Dec 92 14:29:22
Organization: The Aerospace Corporation, El Segundo, CA
Distribution: misc
NNTP-Posting-Host: solarium.aero.org


I was at the library today and they told me that they had "boxes and
boxes" of 92 tax forms sitting around, but they couldn't hand them out
until the day after Christmas.  Is this true (I mean, is there
independant confirmation of this across the country; I'm sure it's
true for the Westminster Branch of the Carroll County, MD Library)?
If so, what is the reasoning?  Thanks for any help on this...

KBEIII
--

Ken Elliott III                  The Aerospace Corp.
elliott@aero.org                 Suite 4400
(410) 312-1405                   8840 Stanford Rd.
                                 Columbia, MD  21045
From: carl@Cayman.COM (Carl Heinzl)
Newsgroups: misc.taxes
Subject: Re: Tax info for 93?
Date: 14 Dec 92 17:20:57 GMT
	<1992Dec11.181450.16737@dg-rtp.dg.com>
Distribution: usa
Organization: Cayman Systems Inc., Cambridge, MA
In-reply-to: brownr@hydra.rtp.dg.com's message of 11 Dec 92 18:14:50 GMT
bcc: carl


Randy,

>|> Tax Bracket	Single		Married/Joint	Head of Household
>|> -----------	------		-------------	-----------------
>|>    15%       up to 21,450    up to 35,800    up to 28,750
>|>    28%       up to 51,900    up to 86,500    up to 74,150
>|>    31%       over  51,900    over  86,500    over  74,150

>So two single people together get taxed at 15% for their first 42,900, but 
>a married couple only have 35,800 taxed at 15% and above that at 28%?

This is what is known as the "marriage penalty".  Welcome to the very
unfair world of the tax system...

-Carl-
--
From: lo@mti.sgi.com (Raymond Lo)
Newsgroups: misc.taxes
Subject: how much is the penalty (was Yikes! Am I Facing a Tax Penalty?)
Date: 14 Dec 92 19:52:17
Organization: SGI, Mountain View, California
Distribution: usa
NNTP-Posting-Host: fuso2.mti.sgi.com

The subject says it.  If the penalty is small, why not just pay for it
on April 15?


--
--
Raymond Lo <lo@mti.sgi.com>
Newsgroups: misc.taxes
From: cep@taligent.com (Christophe Pettus)
Subject: Re: Lot's of business expenses and NO Income
Organization: Taligent, a little subsidiary of two really big companies.
Date: Tue, 15 Dec 1992 20:00:06 GMT

In article <1992Dec15.173436.15088@spectra.com> ohumukin@spectra.com (Kawika Ohumukini) writes:
>I own a small business that I just started Aug 25th.
>I have been purchasing materials and equipment since May.
>
>I have almost no income to date and will not until April of
>May of 1993.
>
>How do I claim the expenses and depreciation amounts on
>my taxes?
>
>Do I wait until I make something?
>Does it roll over to 1993?

"Start-up expenses" of a small business are NOT directly deductible in
the year they are incurred.  You can deal with them one of two ways:

1. Capitalize them, in which case they are added to the basis of the
   business and are not deductible until you sell the business (this
   usually isn't the right answer).

2. You can depreciate them over five years, 20% per year, starting when
   the business is in operation.

The question of when a business is "in operation," and thus is
incurring operating expenses rather than start-up expenses, is a tricky
one.  The IRS and tax court have disagreed on this point; the IRS
almost always takes a very strict position that you are in startup
until you receive income, while the tax court has taken a more liberal
position in various rulings.  This is an area to discuss with a tax
professional.

>PS:  I am getting ready to spend about $1000 in 1992 and
>     $2000 in 1993 on equipment, should I wait until 1993?

This is a tough decision.  If you feel confident that the investment
tax credit will be enacted by Congress, and you believe Congressional
leaders that it will be retroactive to the start of 4Q1992, you
probably shouldn't worry about it either way.  However, if you feel
that you are in start-up expense mode, rather than operating expense
mode, it probably pays to delay the purchase of the equipment until you
are in operation, so that you can deduct it directly.
--
-- Christophe

"I draw the line at Styrofoam packing kernels, you sick pervert."
From: wade@oasys.dt.navy.mil (Michael Wade)
Newsgroups: misc.taxes
Subject: Investment Club Tax Filing Question
Date: 17 Dec 92 17:00:36 GMT
Reply-To: wade@oasys.dt.navy.mil (Michael Wade)
Distribution: usa
Organization: BRU Partners, Bethesda, MD


We have recently formulated an investment club where I work.  We need
to undertsand what the proper procedure is and which forms need to be
filed on behalf of the club for its fiscal year ending December 31st.

Which forms does the club need to file?
Does the club need to prepare K-1s' or other documentation for club
members to attach to their personal tax returns?
What is each club member responsible for?
Does the NAIC have any tax filing guidelines that are available?

We would appreciate hearing from anyone who has gone through this before
and considers themselves grizzled veterans of the investment club tax
wars...

Mike Wade
BRU Partners
wade@oasys.dt.navy.mil
^^^^^^^^^^^^^^^^^^^^^^
Newsgroups: misc.taxes
From: kjhart@pbhya.PacBell.COM (Kenny J. Hart)
Subject: Re: allocated tips
Reply-To: kjhart@PacBell.COM (Kenny J. Hart)
Organization: Pacific * Bell, San Ramon, CA
Distribution: usa
Date: Tue, 15 Dec 1992 16:48:06 GMT

In article <28576@oasys.dt.navy.mil> allen@oasys.dt.navy.mil (Cheryl Allen) writes:
>
>I have a question, I work part time at a pizza restaurant for extra
>money. The IRS now has this law that you must claimat least 8% of the
>store sales in tips. How can they, THE IRS do this?? This store is really
>a fast food type restaurant, not everyone that comes in leaves tips,
>we for the most part cater tokids and they dont leave tips. The IRS
>now claims that the amount of sales for the storeI should of claime
>almost $800.00 dollars more they I did.
>Thanks in advance if anyone knows anyting about this new 8% law.
>Cheryl

This is not a new law..it has been around almost 10 years.  When I
was in the restaurant business in the early 80's, the rule was as 
follows.  If the restaurant did not report tips of 8% of the store's
sales, they would come after the employees for more tax.  My 
restaurant helped us out by "suggesting" a certain amount of tips
to be claimed per shift.  It was actually less than I was claiming,
so I don't think you should have a problem, unless you haven't
been declaring any tips.......????


-- 
  Kenny Hart               
  kjhart@pacbell.com
From: davidc@meaddata.com (David Ciaciuch)
Newsgroups: misc.taxes
Subject: Re: Can married file as single?
Date: 15 Dec 1992 19:29:02 GMT
Organization: Mead Data Central, Dayton OH
Distribution: na
NNTP-Posting-Host: newyorker.meaddata.com

In article <1fdenvINNoba@morrow.stanford.edu>, AS.DLH@forsythe.stanford.edu (David Hatt - 5-0083) writes:
|> Hello,
|> 
|> A friend asked me something that striked me as odd and I simply
|> don't have the answer:  My friend is married and he and his wife
|> file single each year.  He says there's no way the IRS can find out.
|>  Can the IRS find out?  Will their marriage show up during an audit?

More importantly: what does filing single "buy" them?

|> Thanks for letting me know.
|> 
|> Dave

-- 
David L. Ciaciuch                                     Engineering Productivity
Mead Data Central                                         (513) 865-1121 x6524
P.O. Box 933                                               davidc@meaddata.com
Dayton, OH  45401                                    ...!uunet!meaddata!davidc
Newsgroups: misc.taxes
From: gilman@cshl.org (Michael Gilman)
Subject: A gift of stock (was: a tax question...)
Followup-To: misc.taxes
Organization: Cold Spring Harbor Laboratory
Date: Mon, 14 Dec 1992 17:00:16 GMT

What if Joe gives Tom common stock with a market value of $10K? If Tom
sells the stock to realize the cash value of the gift, is he liable for
capital gains tax on the difference between the stocks current value and
its original cost basis for Joe?

Incidentally, this is a real rather than a hypothetical question. Any info
would be appreciated?

Thanks,
Michael Gilman
gilman@cshl.org
Newsgroups: misc.taxes
From: cep@taligent.com (Christophe Pettus)
Subject: Re: Income Taxes Of A Self-Employed Lawyer
Organization: Taligent, a little subsidiary of two really big companies.
Date: Wed, 16 Dec 1992 19:52:38 GMT

In article <CARL.92Dec16114841@atlantis.Cayman.COM> carl@Cayman.COM (Carl Heinzl) writes:
>Remember - he said "self employed", which means that he's paying both
>ends of the FICA.  Just the employee portion alone is 7.65 %...  I
>don't know how much it is for self employed people, but it's probably
>in the 13-15% range.  Add that to 31% and you're at 44-48% - pretty
>close to the 50% he quoted!!!

Well, technically he's paying both the FICA and the FUTA, but let's not
stand on ceremony.  Remember, however, that the FUTA portion is
deductible from taxable income, so that reduces it somewhat.  Many
self-employed people who also have employment income escape it
entirely, but that's a different circumstance.

Of course, if he incorporated his business as a 503(c)(3) corporation,
say a legal clinic, he wouldn't have to pay FUTA (but would still have
to withhold FICA from employees).
--
-- Christophe

"I draw the line at Styrofoam packing kernels, you sick pervert."
From: tar@ISI.EDU (Thomas A. Russ)
Newsgroups: misc.taxes
Subject: Re: Tax info for 93?
Date: 14 Dec 92 18:09:27 GMT
Article-I.D.: venera.23055
	<1992Dec11.181450.16737@dg-rtp.dg.com>
Reply-To: tar@isi.edu
Distribution: usa
Organization: USC-ISI
In-reply-to: brownr@hydra.rtp.dg.com's message of 11 Dec 92 18:14:50 GMT

In article <...> brownr@hydra.rtp.dg.com (Randy Brown) asks:
 > So two single people together get taxed at 15% for their first 42,900, but 
 > a married couple only have 35,800 taxed at 15% and above that at 28%?
 > 
 > What balances out for this fact?  Deduction is different or what?
 > 

Nothing balances for this fact.  This phenomenon has been dubbed "the
marriage tax."  It is a relic of days in which the following
assumptions held:

	1)  Married women did not work.
	2)  Unmarried people did not share a household.

The impact of #2 was that two single people could be expected to have
higher household expenses than two married people.  With this
expectation, "fairness" dictated that a married couple have a lower
deduction.  Evaluating the truth of these two assumptions is left as
an exercise in sociology for the reader.

--

Thomas A. Russ                                             tar@isi.edu    
USC/ISI, 4676 Admiralty Way, Marina del Rey, CA 90292      (310) 822-1511
From: tiwana@uts.amdahl.com (Gurumukh Singh Tiwana)
Newsgroups: misc.taxes
Subject: Re: Yikes! Am I Facing a Tax Penalty?
Date: 15 Dec 92 01:40:07 GMT
Distribution: usa
Organization: Amdahl Corporation, Sunnyvale CA

I am underheld for the California state tax. Only about 50% of the
tax is withheld from my wife's and my paycheck. Does anyone know how
I can remedy the situation without paying a penalty?

Thanks

-- 
Gurumukh Singh Tiwana
tiwana@uts.amdahl.com
tiwana@charon.amdahl.com
Newsgroups: misc.taxes
From: lib@cbnews.cb.att.com (Lib)
Subject: Re: gambling as a profess
Organization: AT&T
Date: Wed, 16 Dec 1992 14:13:44 GMT

In article <1992Dec15.1302.3969@execnet> "hilary miller" <hilary.miller@execnet.com> writes:
>
>A5>My question is: How does this change if I gamble professionally (for
>A5>myself and others) as a primary means of supporting myself?  Can I
>A5>deduct gambling losses in access of gambling gains?  In past years,
>A5>when I've had gains, I have filed Schedule C and I plan to do so again
>A5>this year.
>A5>Where in the Tax Code might I find the answer to my questions?
>
>               Jason, you can indeed deduct your losses as a pro-
>               fessional gambler.  The key is good record-keep-
>               ing.  It's not in the Code, so you won't find it;
>               you have to look at the cases.

True enough. I knew a man who went to the dog races everyday. In order
to deduct his losses he would save each program and staple his losing
tickets to the page corresponding to each race, then save all the programs
in a suitcase. He then had to save the suitcases from past years in case of 
audit. He always complained about the IRS becaues they refused to give him
a letter stipulating that they had (at least at one point) seen his
documentation so that he could throw out the old programs and just keep
the IRS' letters as proof. So he had to lug in these suitcases everytime
they audited him. Nevertheless he made out OK deducting his losses.
From: bradley@novell.com (Brad Soe)
Newsgroups: misc.taxes
Subject: Re: medical deductions...
Date: 16 Dec 92 22:07:24 GMT
Distribution: usa
Organization: Novell Inc., San Jose, Califonia

In article <BzDAK1.2Dz@taligent.com> cep@taligent.com (Christophe Pettus) writes:
>In article <BzD1Hr.8s@cs.columbia.edu> swfc@cs.columbia.edu (Shu-Wie F Chen) writes:
>>Given a 1992 salary of x dollars, how much must my medical expenses be
>>in order to claim the medical deduction?
>
>Medical Deduction = (Medical Expenses) - (7.5% * Adjusted Gross
>Income), to a minimum of zero, of course.
>--
>-- Christophe
>
>"I draw the line at Styrofoam packing kernels, you sick pervert."

Don't forget that AGI may not be your salary. It may be higher or lower
than x depeding on other incomes and deductions.




Brad Soe
bradley@novell.com
From: mcaldon@igc.apc.org (McAldon International Inc.)
Newsgroups: misc.taxes
Subject: Re: Tax forms for 92
Date: 14 Dec 92 00:22:00 GMT
Nf-ID: #R:ELLIOTT.92Dec12142922@solarium.a:-1100868062:cdp:1427800052:000:703
Nf-From: cdp.UUCP!mcaldon    Dec 13 16:22:00 1992


|I was at the library today and they told me that they had "boxes and
|boxes" of 92 tax forms sitting around, but they couldn't hand them out
|until the day after Christmas.  Is this true (I mean, is there
|independant confirmation of this across the country; I'm sure it's
|true for the Westminster Branch of the Carroll County, MD Library)?
|If so, what is the reasoning?  Thanks for any help on this...
|Ken Elliott III                  The Aerospace Corp.

For what it's worth, I received my IRS 92 tax package in the mail at
least one week ago.  DMcKenzie

|    mcaldon@igc.org     |        "History is bunk"  Henry Ford     |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Newsgroups: misc.taxes
From: swfc@cs.columbia.edu (Shu-Wie F Chen)
Subject: medical deductions...
Organization: Columbia University Department of Computer Science
Distribution: usa
Date: Wed, 16 Dec 1992 16:22:39 GMT

Given a 1992 salary of x dollars, how much must my medical expenses be
in order to claim the medical deduction?

Thanks,
*swfc

-- 
---------------------------------------------------------------------------
Shu-Wie F Chen                               Department of Computer Science
swfc@cs.columbia.edu                         Columbia University
Newsgroups: misc.taxes
From: ask@cbnews.cb.att.com (Arthur S. Kamlet)
Subject: Re: A gift of stock (was: a tax question...)
Organization: AT&T Bell Laboratories,  Columbus, Ohio
Distribution: usa
Date: Tue, 15 Dec 1992 00:07:37 GMT

In article <gilman-141292120800@143.48.10.10> gilman@cshl.org (Michael Gilman) writes:
>What if Joe gives Tom common stock with a market value of $10K? If Tom
>sells the stock to realize the cash value of the gift, is he liable for
>capital gains tax on the difference between the stocks current value and
>its original cost basis for Joe?

The simple answer is yes.

It is perfectly OK for Joe to give Tom stock with a market value of
$10,000.

Asssuming that Joe's cost basis for the stock was less than $10,000
then Tom's cost basis is the same as Joe's.  And the acquisition
date is the same as Joe's.

(If the cost basis was more than $10,000 Joe should sell at a loss
instead of giving it to Tom.  If he gives it to Tom anyway, the
stock will carry a dual cost basis and I'll let someone else explain
that :^)   (Hint -- Tom may later give that stock to someone else)
-- 
Art Kamlet  a_s_kamlet@att.com  AT&T Bell Laboratories, Columbus
From: bhs@neuro.duke.edu (Brennan Stephens)
Newsgroups: misc.taxes
Subject: Student Taxes
Keywords: taxes student undergrad
Date: 15 Dec 92 19:17:12 GMT


Does anyone out there familiar with the tax laws regarding undergraduates?  
Are there any good books on the subject.  I have searched, but their isn't
much out their.  Please post or e-mail any information you can, especially
regarding deductions for educational expenses for a student with no parental
support.

Thank You.
.
From: mcaldon@igc.apc.org (McAldon International Inc.)
Newsgroups: misc.taxes
Subject: Re: Clinton and capital gains?
Date: 14 Dec 92 00:22:00 GMT
Nf-ID: #R:1992Dec12.230359.11590@mailer.cc:829635752:cdp:1427800053:000:806
Nf-From: cdp.UUCP!mcaldon    Dec 13 16:22:00 1992


|What do you think the Clinton administration will do (if anything) about  
|reducing taxation of long-term capital gains? Should I hold off selling  
|until January in hopes of a reduced rate?
|-Steve

I've listened and read assiduosly about this and IMHO there is little or
no chance of any cap-gains-tax relief on anything except new investments
in business, possibly IPOs and venture-capital financing.  However, it
seems likely there will be other forms of tax relief for people earning
under six digits of adjusted gross income. 

|                        |      "Time is the best teacher.      |    
|    mcaldon@igc.org     |    Unfortunately, it kills all its   |
|                        |    pupils."   Hector-Louis Berlioz   |
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Newsgroups: misc.taxes
From: Nate.H%bbs@quake.sylmar.ca.us (Nate H)
Date: Sun, 20 Dec 92 05:11:32 PST
Organization: Quake Public Access, San Fernando Valley, CA (818)362-6092
Subject: Tax Forms
Distribution: world
Reply-To: Nate.H%bbs@quake.sylmar.ca.us (Nate H)
X-Posting-Software: UniBoard 1.10a S/N 210921

Would someone please post exactly WHO should file a 1040NR form
and what a W - 8  form is for?
 
Don't forget to explain what "United States" is redefined as in the IRC
and also the word "State".
 
Don't forget that you need to say "includes but not limited to..." when
you are including alot of other things in a sentance.
 
In other words if I say:
 
The term "hamburger" shall be construed to include the pickles.
 
Means that hamburger now means only pickles whenever I use it.
 
If I had said:
 
The term "hamburger" shall be construed to include but not limited to
the pickles.
 
Then you would get pickles with your hamburger!
 
It's all playing around with words, isn't it?
 
Please post answers, I am really courious.