Non resident tax return preparation services

This is another specialized area practice, in Actuit India, to service and support nonresident Indians, to plan their income tax liability not only in India, but also for countries they are visiting for jobs/business, depending upon the their status of resident in visiting countries.

Our tax planning can help to protect the foreign income of NRIs from being taxed in India. We provides advisory and compliance and nonresident tax return preparation and filing services covering related to law and income taxation laws, countries travelled, applicable to Non-Residents.

 The nonresident tax returns can be compiled as per the provisions of the countries to which you were resident in taxable year coupled with the “considering” applicability of DTAA, Double Taxation Avoidance Treaty between countries.
The large number of tax planning suggestions and guidelines provided by us has helped number of travelers, software engineers to save on income taxes in India in such a manner that the income of your spouse, major children, major grand-children, etc. is not added to your income as a non-resident Indian.

We actively review changes income laws of all countries (US/UK/Canada and Singapore) wherein we serve individuals to file their resident and nonresident tax returns and to maximize their tax refunds. As a tax planning and return preparation and filing service provider we handle both domestic and international tax planning situations.

Our expert guidance includes:
1. Who is an NRI, how to become one, and how to enjoy your NRI benefits for many years even after returning permanently to India?
2. Tax-exempt items of income and wealth.
3. Special tax deductions and rebates available to NRIs.
4. Tax-exempt gifts you can make to friends and relatives.
5. Procedure for filing and assessment of nonresident tax returns tax returns.

About Company: 
Actuit India bouquet of services includes back office services for accounting, Tax returns preparation, Practice management, Bankruptcy and Insolvency tax return preparation services. We provide tax return preparation services to individuals and business in India, having operations in USA/UK /Canada/Australia and Singapore.

For more information please visit at http://www.actuitindia.com/non-resident-tax-returns.html

Keywords: Tax return preparation services, Non Resident tax return preparation services

Selling Your Home

During summer months many people sell their home and move to a new location. Many of those individuals will make a profit on the sale and still will not have to pay a single dime of additional income tax to the IRS.

Generally, you have made a profit if the selling price of your home is greater than the price you paid to purchase the home. That profit, considered a capital gain, is subject to income tax. However, under certain circumstances the law allows you to exclude all or part of that gain from your income – that is, you may not have to pay tax on the profit.

This exclusion—up to $250,000 for individuals and $500,000 for married taxpayers filing joint returns—is not a once in a lifetime event. The exclusion may be claimed each time that you sell your main home, but generally no more often than once every two years.

To qualify, you must meet both the ownership and use tests.

• Ownership Test: You must have owned the home for at least 2 years in the 5-year period ending on the date of the sale.
• Use Test: You must have lived in the home as your main home at least 2 years during the 5-year period ending on the date of the sale.

If you and your spouse file a joint return and both meet the use test, you normally will be able to claim the exclusion for married couples even if the ownership test is met by only one of you.

If you do not meet these tests, you may still be allowed to exclude a reduced amount of the gain realized on the sale of your home. But you must have sold the home for other specific reasons such as serious health issues, a change in your place of employment, or certain unforeseen circumstances such as a divorce or legal separation, natural or man-made disasters resulting in a casualty to your home, or an involuntary conversion of your home.

If you are entitled to exclude the entire gain from the sale of your home, you do not need to report the gain on your federal tax return. However, if you are not entitled to exclude the entire amount of the gain, use Schedule D, Capital Gains and Losses, and Form 1040 to report the total gain, the portion that can be excluded, and the portion that is subject to capital gains tax.

For more details and information see IRS Publication 523, Selling Your Home, available at IRS.gov or by calling 800-TAX-FORM (800-829-3676).

Link:

Link Publication 523, Selling Your Home

Need Help? Find it fast on IRS. Gov – Products and Answers

There is a wealth of free tax information on the IRS Web site, IRS.gov. The IRS has just about everything except the kitchen sink and Shakespearean plays. But even those might have tax implications that can be discovered by a visit to the site.

Individuals and businesses can find answers to almost any question about federal taxes on the web site. During the 2007 filing season, the IRS web site was accessed approximately 150 million times. In fact, during the tax filing season from January through April, IRS.gov is one of the most heavily visited sites on the Internet.

The award-winning IRS Web site has been designed to help you get to the information you need. Helpful links found at the top of the home page will take you directly to topics centered on Individuals, Businesses, Charities and Non-Profits, Government Entities, Tax Professionals, the Retirement Plan Community and Tax Exempt Bonds.

In addition to the latest news coming from the IRS, the homepage can lead you to statistics, news releases and tax tips, local IRS offices, the Taxpayer Advocate Service, and thousands of IRS forms and publications. Frequently asked questions and answers are available or you can use two separate search icons: one by keyword and one by answering “I need to . . .”

There’s much, much more. For example, small business owners and the self-employed will find that there are special products and resources made just for them by selecting from among more than two dozen links. There is even an A-Z find-it-fast link for small businesses and a small business workshop video you can view online.

The best way to learn about the IRS Web site is to take some time to browse through the pages of information that interest you the most. Understanding the tax system may never be easy, but the IRS is constantly working to make it easier to find the information you need on IRS.gov.

You can have the advice of tax experts and all of the resources of the IRS right in the comfort and convenience of your home by visiting IRS.gov. If you don’t have a computer with internet access, many libraries offer this service.

Help Offset Education Costs with Tax Credits and Deductions

It is Back-to-School time and maybe time for a tax break, too. Whether you are paying for a college education or a teacher buying items for your classroom, education credits and deductions can help lower your tax bill.

The Hope Credit, Lifetime Learning Credit or the Tuition and Fees Deduction may help offset the cost of higher education for you, your spouse and your dependents.

The amount of these credits and deductions are based on the qualified education expenses, such as college or vocational school tuition and enrollment fees, that you paid during the year and may be limited by your modified adjusted gross income. Room and board, insurance or personal living expenses are not considered qualified education expenses.

The Hope Credit, which is up to a $1,650 tax credit per student per year, is available for only the first two years of college or vocational school.

The Lifetime Learning Credit, which is up to a $2,000 tax credit per tax return, applies to undergraduate, graduate and professional degree courses and there is no limit to the number of years you can take this credit.

The Tuition and Fees Deduction, which is up to a $4,000 deduction from your income, applies to undergraduate, graduate and professional degree courses. This deduction may be beneficial as the modified adjusted gross income limits are higher than the thresholds for the Hope and Lifetime Learning Credits.

Are you paying Student Loan interest? You may be able to deduct up to $2,500 from your income per tax return. Student Loan interest may be deducted even while your student is in school if you are paying the interest immediately rather than deferring the payments.

You cannot claim the Hope Credit, Lifetime Learning Credit and the Tuition and Fees Deduction for the same student in the same year. You will want to choose the credit or deduction that provides the greatest benefit. However, you can claim the Student Interest Loan deduction and one of these other benefits simultaneously.

Students and parents of students are not the only ones who can claim a Back-to-School tax benefit.

As summer comes to an end, many teachers and other eligible educators are preparing for the start of the new school year. That preparation could include purchasing items for the classroom from personal funds. Be sure to keep your receipts. These out-of-pocket classroom expenses can be deductible.

As an educator, you may be able to deduct up to $250 for expenses paid for the purchase of books, computer equipment and classroom supplies. If you and your spouse are filing a joint return and both are eligible educators, the maximum deduction is $500.

To find out more about the deduction for educator expenses, including who qualifies for this deduction, check out the IRS Web site at IRS.gov. In the search field, type in the key words “educator expenses.”

Additional information on the Hope and Lifetime Learning Credits, Tuition and Fees Deduction and Student Loan Interest Deduction is available in Publication 970, Tax Benefits for Education, found on the IRS Web site at IRS.gov or by calling 800-TAX-FORM (800-829-3676).

Selling Your Home

During summer months many people sell their home and move to a new location. Many of those individuals will make a profit on the sale and still will not have to pay a single dime of additional income tax to the IRS.

Generally, you have made a profit if the selling price of your home is greater than the price you paid to purchase the home. That profit, considered a capital gain, is subject to income tax. However, under certain circumstances the law allows you to exclude all or part of that gain from your income – that is, you may not have to pay tax on the profit.

This exclusion—up to $250,000 for individuals and $500,000 for married taxpayers filing joint returns—is not a once in a lifetime event. The exclusion may be claimed each time that you sell your main home, but generally no more often than once every two years.

To qualify, you must meet both the ownership and use tests.

• Ownership Test: You must have owned the home for at least 2 years in the 5-year period ending on the date of the sale.
• Use Test: You must have lived in the home as your main home at least 2 years during the 5-year period ending on the date of the sale.

If you and your spouse file a joint return and both meet the use test, you normally will be able to claim the exclusion for married couples even if the ownership test is met by only one of you.

If you do not meet these tests, you may still be allowed to exclude a reduced amount of the gain realized on the sale of your home. But you must have sold the home for other specific reasons such as serious health issues, a change in your place of employment, or certain unforeseen circumstances such as a divorce or legal separation, natural or man-made disasters resulting in a casualty to your home, or an involuntary conversion of your home.

If you are entitled to exclude the entire gain from the sale of your home, you do not need to report the gain on your federal tax return. However, if you are not entitled to exclude the entire amount of the gain, use Schedule D, Capital Gains and Losses, and Form 1040 to report the total gain, the portion that can be excluded, and the portion that is subject to capital gains tax.

For more details and information see IRS Publication 523, Selling Your Home, available at IRS.gov or by calling 800-TAX-FORM (800-829-3676).

Link:

Link Publication 523, Selling Your Home

Need Help? Find it fast on IRS. Gov – Products and Answers

There is a wealth of free tax information on the IRS Web site, IRS.gov. The IRS has just about everything except the kitchen sink and Shakespearean plays. But even those might have tax implications that can be discovered by a visit to the site.

Individuals and businesses can find answers to almost any question about federal taxes on the web site. During the 2007 filing season, the IRS web site was accessed approximately 150 million times. In fact, during the tax filing season from January through April, IRS.gov is one of the most heavily visited sites on the Internet.

The award-winning IRS Web site has been designed to help you get to the information you need. Helpful links found at the top of the home page will take you directly to topics centered on Individuals, Businesses, Charities and Non-Profits, Government Entities, Tax Professionals, the Retirement Plan Community and Tax Exempt Bonds.

In addition to the latest news coming from the IRS, the homepage can lead you to statistics, news releases and tax tips, local IRS offices, the Taxpayer Advocate Service, and thousands of IRS forms and publications. Frequently asked questions and answers are available or you can use two separate search icons: one by keyword and one by answering “I need to . . .”

There’s much, much more. For example, small business owners and the self-employed will find that there are special products and resources made just for them by selecting from among more than two dozen links. There is even an A-Z find-it-fast link for small businesses and a small business workshop video you can view online.

The best way to learn about the IRS Web site is to take some time to browse through the pages of information that interest you the most. Understanding the tax system may never be easy, but the IRS is constantly working to make it easier to find the information you need on IRS.gov.

You can have the advice of tax experts and all of the resources of the IRS right in the comfort and convenience of your home by visiting IRS.gov. If you don’t have a computer with internet access, many libraries offer this service.

Why wait until your taxes are due? Summertime is a great time to visit IRS.gov.

¿Habla español? So does the IRS!

Tax information can be difficult to understand in any language; but it can be even more difficult if it is not in your first language. To assist Spanish speakers, the IRS provides a wide range of free products and services.

IRS.gov/Espanol: The IRS Spanish Web site offers tax forms, publications, and information. Interactive applications such as the following are available for individuals:

• The EITC Assistant (Asistente EITC) helps determine your eligibility for EITC.
• The Withholding Calculator (Calculadora para la Retención de Impuestos) that helps ensure that the income tax withheld from your pay check is not too much or too little.

Toll-Free Telephone Assistance is available in Spanish on pre-recorded hotlines and from bilingual IRS representatives:

• The TeleTax line (800-829-4477) has recorded messages in Spanish that are available around the clock, covering more than 100 tax topics.
• The Refund Hotline (800-829-1954) provides information about a refund status in Spanish when caller provides the filing status and the exact refund amount expected.
• The IRS toll-free customer service line (800-829-1040) has Spanish-speaking representatives ready to help taxpayers.

For complete list of contact numbers check IRS.gov.

Many documents available in Spanish: Among the most frequently requested publications available in Spanish are Publication 1(SP), Your Rights as a Taxpayer, Derechos del Contribuyente, and Publication 579(SP), How to Prepare the Federal Tax Return, Cómo Preparar su Declaración de Impuesto Federal. For a list of forms and publications in Spanish search the phrase “Formularios y Publicaciones” on IRS.gov.

Keeping Small Businesses in Mind: The Small Business link (Recursos Para Pequeñas Empresas) will lead business owners to information such as “SSA/IRS Reporter”, a newsletter that can be downloaded in English or Spanish. The summer 2007 edition has tips for electronic filers, late filers, tax exempt organizations, employers in economically distressed areas and businesses that are targeted by tax scams.

Other important information for Spanish-speaking business owners can be found in Publication 966(SP), Electronic Choices to Pay All Your Federal Taxes, Opciones Electrónicas para pagar todos sus Impuestos Federales, and Publication 1518(SP) Tax Calendar for Small Businesses, a working tool filled with tax tips and deadline reminders. Form 944(SP), which simplifies reporting requirements for business owners, is now available in Spanish, and when faced with challenges, it is good to know that information on disaster losses is also available in Spanish on IRS Publication 1600(SP).

If you or someone you know speaks Spanish, then think of the IRS when you need tax assistance. We can help! ¡Podemos ayudar!

Links:

• El IRS en Español
• Formularios y Publicaciones
• Recursos Para Pequeñas Empresas