Tag Archives: Tax

Vote Yes On S

Protect Our Local Supply of Safe, Clean Water in Santa Clara County- Without Raising Taxes

For more than 20 years, Santa Clara County residents have benefited from the Safe, Clean Water Program through Valley Water. The program has provided local funding to build voter- approved projects that protect our local drinking water for future generations. Measure S allows Valley Water to continue to implement this program by creating a long-term strategy for safe, clean local drinking water.

MEASURE S WILL

  • Protect our local drinking water supply
  • Upgrade aging pipelines and dams to protect against earthquakes and climate change
  • Reduce pollution, toxins and contaminants in waterways
  • Provide natural flood protection

AND MEASURE S DOESN’T INCREASE TAXES: It simply renews existing local funding we’ve relied on for 20 years. It would extend Measure B, approved by 74% of county voters in 2012.

MEASURE S REQUIRES INDEPENDENT CITIZEN OVERSIGHT AND AUDITS TO ENSURE FUNDS ARE SPENT AS PROMISED All Measure S funds will be controlled locally, will go to our local water protection projects and cannot be taken away by the state.

SENIOR RESIDENTS CAN BE EXEMPTED FROM THE TAX

Join local residents, environmental groups, labor, business leaders, and elected officials in protecting our water supply for future generations.

 

Paid for by Safe Clean Water for Our Future, Yes on Measure S. Committee major funding from: California Alliance for Jobs – Rebuild California Committee
Operating Engineers Local Union No. 3 Issues Advocacy/Ballot Initiative PAC

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An International Student’s Concerns

COVD-19 has caused worldwide concerns in the higher education space, especially in the middle of the ongoing decline in the number of international students studying at American universities. They are losing billions of dollars as reported in the March 2020 report of ‘NAFSA: Association of International Educators.’ There has been discussion on how it has impacted schools, colleges, next admission cycle, financial funding, how teachers are told to teach online. Most of the universities have moved to online teaching.

Some, like Boston University, are considering the possible postponement of their Fall 2020 semester, which will again put International students at higher risk because if they are not enrolled for a specific number of credits during a semester, they will not meet the visa regulations, initiating possible deportation proceedings against them. However, these are not the only challenges international students are going through, there are many more things we need to think about as we move forward. 

Take financial insecurity. Many of my American friends don’t know that International students are only allowed to work on campus for a limited number of hours to support themselves financially. These hours are further reduced during the summer semester for international students. Due to this unprecedented situation, international students are worried about how they will earn their livelihood and pay their bills with campuses closed. 

Traveling is extremely expensive at this point. Canada, India, and many European countries are on complete lockdown. International travel is expensive, and that is why international students choose to go annually or biannually.

Someone I know can afford tuition fees, but they depend entirely on their on-campus cafe’s job to pay bills. In these extremely uncertain times, the educational institutions are doing their best to offer most of their classes online, providing free food, supplies, and virtual support, but this is a temporary solution. International students have sustained the economy of American Universities and though international students may not be citizens or permanent citizens, they pay similar kinds of taxes on their income; another contribution to the US economy that has been impacted.

I have been worried about my friends and family. I am not at home to take care of my parents, and to seek solace, I have been talking to other international students. I realized that I am not alone, we are all stressed. One lost their family member, a few have economic challenges, my friend’s elderly parents are alone without any help. We do not know if traveling is safe, from both, an immigration and health point of view. 

Many students have invested their hard-earned resources for a dream to earn their degrees from America. University of Chicago’s Business Professor and Economist Anil Kashyap and Jean-Pierre Danthine at the Paris School of Economics are predicting a massive recession that will likely hit the job market shortly, which would be again detrimental for international students trying to find a job. Graduate students who are joining US schools from Fall 2020 also see an uncertain future because after they graduate in two or five years, depending upon what degree they are pursuing, may not have a stable economy waiting to welcome them. 

This situation is of global concern and everyone should take steps that are guided by morality and compassion. The American economy has benefited immensely from the contribution of immigrants. Far from home, they don’t have much direct physical support, unlike most other students, and everyone should come forward with a different approach to meet our challenges.

Saurabh Anand is an international Ph.D. student and a Graduate School Research Assistantship Block Grant (GSRA) fellow in the Department of Language and Literacy at the University of Georgia. A version of this article was first published in Duluth News Tribune.

Top Tips For Relocating To Qatar

With its high salaries, zero income tax, and glamorous lifestyle, it’s not surprising that Qatar is one of the hottest destinations for expats. Here are some top tips to help you prepare for moving there.

Get ready to embrace the heat

One of the biggest challenges expats face when moving to Qatar is acclimatizing to the intense climate. Temperatures can peak at around 50 degrees Celcius in summer and levels of humidity can reach around 40-60%. But you shouldn’t let this put you off, because every building has air-conditioning and there are numerous hotel pools to cool down in.  

Take advantage of the excellent healthcare 

Qatar boasts one of the top 5 healthcare systems in the world which is great news for expats. And because all employers in Qatar are legally required to provide healthcare for their employees, expats should be covered from day one. They can either access state healthcare services at a subsidized rate or buy private health insurance to access excellent private facilities and cover any costs not met through public healthcare. 

Remember to dress conservatively 

Qatari society is heavily influenced by Islamic customs, so expats should dress conservatively when out and about in public. Men should avoid wearing shorts and sleeveless shirts in public places and women should avoid wearing revealing clothes that don’t cover their shoulders and knees. It’s also important to respect local etiquette when it comes to greetings and general behavior. 

Be aware of the strict laws on drugs and alcohol

For most expats, drinking alcohol is a normal part of life, but in Qatar, there are strict laws to abide by. Drinking alcohol or being drunk in public are offenses and drink-driving and other alcohol-related offenses can result in imprisonment, fines, or even deportation. That said, alcohol is still available at licensed hotel restaurants, bars, and certain clubs and expats should carry their Qatar ID or passport with them. The use and selling of recreational drugs are illegal too, and offenders can face long-term imprisonment, heavy fines, and deportation. 

 

Tax Cuts and Jobs Act (TCJA) Changes For 2018

Major tax legislation at the end of 2017 has suspended many prized deductions for 2018 through 2025, while cutting tax rates. Here are the details:

Altered and eliminated tax deductions

  • Personal exemptions. You can no longer count on personal exemptions, including dependency exemptions for children and other relatives. They are eliminated.
  • State and local tax (SALT). The deduction for state and local tax (SALT) payments is limited to $10,000 annually.
  • Mortgage interest. Mortgage interest deductions are modified, including eliminating deductions for home equity loan payments…unless funds from the loan were used to build, buy or substantially improve your home.
  • Miscellaneous expenses. The deduction for miscellaneous expenses, including unreimbursed employee expenses, is eliminated.
  • Moving expenses. Deductions for moving are eliminated (except for military personnel).
  • Casualty and theft loss. Casualty and theft loss deductions are eliminated (except for losses in federally declared disaster areas).

Enhanced tax deductions

  • Standard deduction. The standard deduction was nearly doubled to $12,000 for single filers and $24,000 for married filing jointly for 2018.
  • 20-percent business deduction. A new up-to-20 percent deduction is allowed for qualified business income (QBI) of pass-through entities, including sole proprietors.
  • Child Tax Credit (CTC). The Child Tax Credit (CTC) is doubled to $2,000 (with a maximum refundable amount of $1,400) per qualifying child.
  • Medical expenses. The threshold for deducting medical expenses is lowered from 10 percent of adjusted gross income (AGI) to 7.5 percent of AGI for 2018.
  • Alternative minimum tax (AMT). Favorable modifications apply to the AMT calculations, meaning far fewer taxpayers will be affected.

 

REMINDER: Rules have changed for these five tax breaks

New tax legislation provides numerous tax benefits for individuals for 2018 through 2025. But not all the changes are likely to align with your go-to tax strategy from previous years. Here are five big tax breaks that could leave you with a tax surprise come April 2019.

State and local taxes: The new tax law limits the deduction for state and local taxes (SALT) to $10,000 annually. This includes any combination of property taxes AND income or sales taxes.

Entertainment expenses: You can no longer deduct 50 percent of your entertainment expenses. But there’s still some leeway. According to a new IRS ruling, you may deduct 50 percent of food and beverages paid separately from entertainment like a basketball or hockey game. Also, a business can deduct 100 percent of the cost of its holiday party.

Miscellaneous expenses: The new law eliminates deductions for miscellaneous expenses, such as out-of-pocket employee business expenses. If possible, have these expenses reimbursed by your employer’s accountable plan. Generally, the expenses are deductible by the employer and tax-free to employees.

Kiddie tax: The kiddie tax continues to apply to unearned income above $2,100 received by a dependent child under 19 or full-time student under 24. But the new law puts more teeth into this tax. The kiddie tax is now based on the tax rates for estate and trusts. This generally produces a higher tax, so plan intra-family transfers accordingly.

Home equity loans: In the past, a homeowner could deduct mortgage interest paid on the first $100,000 of  home equity debt, regardless of use of the proceeds. The new law eliminates this deduction for home equity debt, unless the proceeds from the loan are used to buy, build or substantially improve your home. Fortunately, you may still deduct interest on the first $750,000 of acquisition debt acquired after December 2017.

 

Tax records needed for 2018 tax returns

  • Personal information: You still must provide your Social Security number (SSN), and SSNs for your spouse and dependents.  For electronic filing, you will need your CA driver’s license or state issued identification card.
  • Employment information: Have all Forms W-2 for you and your spouse. A self-employed person must report income from Forms 1099-MISC and Forms K-1, plus information for calculating the new deduction on qualified business income (QBI).
  • Child expenses: Provide information for claiming the increased Child Tax Credit (CTC) and Child and Dependent Care Credit. This may include details for a dependent care provider.
  • Investments: Include all information on various Forms 1099 for capital gains and losses (including cost/basis information), dividends and interest. Fortunately, this can often be scanned electronically.
  • Retirement plans/IRAs: Report contributions to plans and IRAs, the value of accounts and distributions received on Forms 1099-R.
  • Rental properties: This requires records of income received and expenses paid in 2018, including amounts, dates and places.
  • State and local taxes (SALT): Recent legislation limits annual SALT deductions to $10,000 for 2018-2025, but itemizers still need relevant records of SALT payments, especially for their California tax return, which does not conform to Federal limitations.
  • Charitable donations: If you itemize, you generally need records for both monetary gifts and donations of property, plus appraisals for property valued above $5,000.
  • Mortgage interest: Itemizers must have Forms 1098 for mortgage interest on acquisition debts that remain deductible.
  • Medical expenses: Collect records and receipts for medical expenses that may push you above the “floor” of 7.5 percent of adjusted gross income (AGI) for 2018.
  • Education expenses: Provide information required for claiming higher education credits, including Forms 1098-T.

 

Under the new legislation, you may not need records this year for miscellaneous expenses, many casualty and theft losses, moving expenses and home equity debts.

Please call, Shermin Tawni Alam of Alam Accountancy Corporation, PC at 408.445.1120 with questions about your particular tax situation.