No extensions necessary for President Obama and Vice President Biden. Both have their tax returns for 2008.
Here’s the scoop:
President Obama and his wife reported $2.7 million in 2008, about $1.5 million less than they reported in 2007 (I guess the recession has hit everyone). A majority of their income came from royalties from Obama’s books (note to self: get book deal).
The Obamas reported $172,050 in charitable donations. The largest donations were made to CARE and to the United Negro College Fund.
Their total tax bill? $855,323.
Vice President Biden and his wife reported total income of $269,256 last year (Biden needs to get himself a book deal). Of that, they donated $1,885 to charity and paid $46,952 in federal income tax.
Taxpayer asks:
I have been cheating on my taxes for a number of years and I never got caught. This year I got a letter from the IRS that they are denying a bunch of my deductions unless I can prove that there real. I can’t. I’m worried because I have done this for longer than they are asking. Can they make me pay for all of those years?
Taxgirl says:
Before I even begin, I have some seriously important advice for you: get yourself to a tax pro, pronto. I’m not sure what stage you’re at in the process – it sounds like you’ve just received a Notice of Deficiency but it’s highly likely that the IRS will ask for proof that you’ve filed for other years. You need competent representation.
As to your specific question, it really depends on what you’ve done. The statute of limitations for the IRS to assess tax is usually three years from the date of filing – they have ten years to collect the outstanding tax. There are exceptions to the three year rule if you have failed to file, committed fraud, willfully evaded tax or grossly underreported (usually 25% or more).
I don’t believe in panicking over tax mistakes, those can be fixed. But it sounds like you’ve engaged in a pattern of behavior that could be considered willful. Don’t get into further trouble. Get it sorted out now.
Like any good lawyer, I need to add a disclaimer: Unfortunately, it is impossible to give comprehensive tax advice over the internet, no matter how well researched or written. Before relying on any information given on this site, contact a tax professional to discuss your particular situation.
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Taxpayer asks:
I had been working for a company for a short time, it has now ended..
This is what happen…
I worked 18 hours at 11$ an hr, but was paid for 42 hrs.
They are requesting that I pay back 229.35
How do I go about with my tax information? Is there some sort of fourm that must be filled out?
Taxgirl says:
If this happened in 2008, I would refund the $229.35 and check your form W-2 to make sure that the correct amount was reported. If the form W-2 reflects the overpayment, I would insist on a corrected form W-2. If it doesn’t, you don’t have a problem. Clearly, you don’t want to overreport on your return once you’ve returned the money.
If this happened in 2009, consider sending a note with your check confirming the return of the funds as overpayment for wages and taxes.
Either way, be sure and clearly document on your check that this is a reimbursement (including taxes) for an overpayment and double check the form W-2. If you have concerns about the accuracy of your W-2 that you can’t resolve with the company, you should get your tax pro involved as soon as possible.
Like any good lawyer, I need to add a disclaimer: Unfortunately, it is impossible to give comprehensive tax advice over the internet, no matter how well researched or written. Before relying on any information given on this site, contact a tax professional to discuss your particular situation.
Have a question? Ask the taxgirl! – Now on Facebook!
Taxpayer asks:
Hi,
I’m very disorganized and still haven’t filed my 2007 taxes (as of March 2009!). I’m planning to file in April 2009. Of course, I did not receive an Economic Stimulus Payment in 2008.
I’m single, and I definitely have taxable income and will owe taxes. Will I be eligible for the Recovery Rebate Credit when I get to my 2008 taxes? I’ve read all through the IRS RRC pages. They talk about all sorts of eligibility requirements, but say nothing about people who simply are behind in filing.
Taxgirl says:
You can file for the RRC on your 2008 taxes even if you did not file for 2007, assuming that you qualify.
That said, I would definitely file – and pay – your 2007 tax returns as soon as possible in order to insure that there are no delays in processing your rebate. Additionally, I’m not sure whether IRS was expecting you to file in 2007 or not (i.e. if forms W-2 or 1099s were sent their way) but it’s better to file that old return promptly to avoid any potential issues – not to mention that the clock is ticking on penalties and interest!
Like any good lawyer, I need to add a disclaimer: Unfortunately, it is impossible to give comprehensive tax advice over the internet, no matter how well researched or written. Before relying on any information given on this site, contact a tax professional to discuss your particular situation.
Have a question? Ask the taxgirl! – Now on Facebook!
