Salem Community Patriot 8 - February 18, 2011
Piece of the Pie Maintaining Your
The Income Tax Return W.F.Bo
utin EA - Total Tax Solutions LLC
Last week, we left off at the calculation of our taxable income, and now we need to understand how tax is calculated from this number. With this knowledge, we will have the foundation for explaining how deductions, credits and various fringe benefits available to many taxpayers can affect your individual situation. There are several tax brackets established by the tax code being the 10%, 15%, 25%, 28%, 33%, and 35%. Each percentage has a “bracket” of income allocated to it, based upon a particular filing status. This table is known as the Tax Rate Schedule. For instance, the 2010 tax rate schedule shows that the 10% tax
bracket for a single individual is from $0 to $8350, whereas the 10% tax bracket for a taxpayer who qualifies as a head of house- hold is $0 to $11,950. A single person, who has taxable income of $15,025, has a tax liability of $1836 taken from the tax tables. The first $8350 is taxed at 10%; the balance of $6675 is taxed at 15%. The $1836 tax liability is 12.22% of the $15,025 taxable income. This 12.22% is the mean of the two percentage brackets (10% and 15%) used to calculate the tax. Based upon this schedule, a single person starts to pay 15 cents on the dollar at $8350, .25 @ $33,950, .28 @ $82,250, .33 @ $171,550 and .35 @$372,950. With this understanding, we can see that a taxpayer may have gross income in a 25% tax bracket, but if they have enough deductions, they can lower their taxable income to a 15% tax bracket. Deductions that lower the gross income come in many forms. Adjustments allowed on the tax return to arrive at the AGI, lowers this income which results in a lower AGI and lower taxable income. The standard /itemized deduction and exemptions lower the taxable income but not the AGI. Various fringe benefits (Cafeteria or Section 125 Plans) offered by employers allow a taxpayer to pay for certain benefits before taxes are withheld. This also lowers their earned income reported on line 7, which conse- quently lowers the AGI and the taxable income for that taxpayer. How much it saves any taxpayer is proportionate to where their taxable income would be without the benefit. (The single taxpayer in the example above saves .15 on every dollar that they lower their taxable income of $15,025, until they would lower it below $8350, when they would then start to save only .10 on the dollar.)
Examples of fringe benefits offered by employers are health
insurance, life insurance, dependent care assistance, Health Savings Accounts for taxpayers who have eligible, high deductible health insurance policies, and medical savings accounts for out of pocket medical expenses to name a few. Usually these types of benefits not only save on federal and state taxes, but are not taxable income for Social Security/ Medicare with holding purposes as well, saving an additional 7.65% for the taxpayer. Money contrib- uted to 401K or IRA plans are pre-tax for federal and state tax purposes only and are also a means of lowering taxable income and AGI.
Remember, a lower AGI on the tax return is comparable to the benefits of lower cholesterol levels to the heart in most cases. Many tax deductions and credits allowed by the tax code “phase out” for high income taxpayers. This phase-out range is calculated starting with the AGI found on the tax return and varies for each deduction or credit as we will discuss in the near future. Therefore concentrating on lowering the AGI of high tax bracket taxpayers is of the utmost importance. Next week: Itemized Deductions Have a tax question? E-mail firstname.lastname@example.org
About Total Tax Solutions: W.F. Boutin EA registered Total Tax Solutions in the State of NH as a LLC in the summer of 2006 after 10 years experience working for a major tax preparation company and 8 years of teaching various tax courses. The company mission is to deliver an excellent customer service experience year around, to offer knowledgeable advice so that clients can make informed decisions regarding their financial future, and to provide this service with integrity, confidence and professionalism.
Continued from page 5 At Salem Police Department, anytime
that any use of force is used, a report that is separate from the incident report is necessary. This is known as a use of force report.
“It must be submitted when deadly or non-deadly force is used and must be submitted in a timely manner,” Patten said. When non-lethal force is used, it is procedure that a supervisor responds to the scene. Also, a review is done to be sure that department rules, policies, and procedures were followed correctly. When lethal force or an officer-
involved shooting occurs in the state of New Hampshire, state law requires that the Attorney General’s office and New
Hampshire State Police Major Crimes Unit responds to the scene and investigates the incident, just as they do for homicides and suspicious deaths. The Attorney General’s office completes their investigation and their final report is submitted to that police department’s chief. “The Attorney General’s office is an independent legal authority. They investigate all officer-involved shootings in the state. Once their investigation and report is completed, it is then determined if the incident met our department’s training and protocol and if our officers acted as trained or if more training is needed,” Patten said.
When asked how the officers performed during the January 6 incident with Minsassian, Patten replied, “The officers performed exactly as trained and performed
admirably under a stressful, dangerous, and significantly life-threatening situation. Our officers performed as trained and performed well. It is our hope and expectations that every officer in this department will perform in that same way. The town should be proud that Salem Police Department has highly trained officers, some of which teach at the state level, and that our officers are well trained in handling these critical deadly force incidents. This particular situation continues to be reviewed in its entirety and if anything can be done better, we will address it and incorporate it into our training.”
The writer is not a certified or civilian member of law enforcement, and has no family, past or present, affiliated with any law enforcement agency.
Free Seminar on E-mail and Social Media Marketing
submitted by the Greater Salem Chamber of Commerce The Salem Chamber of Commerce is pleased to offer an intensive and informative workshop on e-mail and social media marketing on Thursday, March 3, at the Atkinson Resort and Country Club. The program is free of charge and open to all member businesses of the Chamber. Corissa St. Laurent from Constant Contact will present the information-packed seminar where participants will learn about the tools and strategies behind the new technology. These tools are essential to master in today’s competitive market, and one need not be a seasoned marketer or a
tech-savvy programmer to understand and be able to use the low-cost tools available to build business and drive success. In the first session, participants will learn:
Best practices and strategies for effective e-mail marketing; list-building ideas and techniques; what valuable content is and how to vary the offerings; how to read metrics and create targeted follow- up campaigns; and how to create new business, sales, and impact. The second session will teach tips
on: the most popular social media tools, including Facebook and Twitter; how to extend online marketing reach; how to create compelling content to get customers to tell your story; how to integrate social
media campaigns with e-mail marketing; and how to manage time effectively. The seminar is Thursday, March 3, from 9 a.m. to 12 p.m., with registration and the opportunity for networking at 8:30 a.m. The Atkinson Resort & Country Club is located at 85 Country Club Drive, Atkinson. The full program is free and includes beverages and snacks. To register, reply to: http://bit.ly/gbUJC4
. Space is limited, so early registration is suggested. For more information, call the office of the Greater Salem Chamber of Commerce at 893-3177 or visit the Website, www. gschamber.com
submitted by the House Republican Office In January, House Republicans presented
House Republicans Pass ‘Evergreen’ Repeal new deal.
a five-point agenda that would serve as a guide for legislation during the coming session. On February 16 in Concord, they delivered on one of their major promises to repeal the so-called Evergreen bill (SB1) in a 282-70 roll call vote. The legislation, passed under Democrat leadership in 2008, allows pay plans for public employees to continue after contracts expire, effectively ensuring teachers and other public employees that they will receive salary step increases based on years of experience instead of having their wages frozen when negotiators cannot agree to a
Week 5 2-18-11
Monday, February 7: 8:48 a.m. Motor vehicle accident, South Broadway, no injury, no report taken. 9:42 a.m. Fraud, North Broadway, credit cards stolen and used, report taken. 12:33 p.m. Fraud, Porcupine Circle, subject reporting someone has her social security number and has also been calling her, investigated. 1:13 p.m. Credit card fraud, South Broadway, report of wallet
House Majority Leader D.J. Bettencourt (R-Salem) called the legislation a “key” piece to the House Republican Agenda. “This law clearly shifted the balance of power to unions during contract negotiations. This will help our municipalities in protecting their budgets from costs not within their control,” he said. In January, the legislation was passed by the Senate by an overwhelming 19-5 vote. Following Wednesday’s vote in the House, the bill will next head to the governor’s desk for his signature. If the evergreen repeal is signed into law, only contracts with specific evergreen language negotiated by
Salem Police Log
New Year- New Insurance- New SMILE! Get the MOST out of your Insurance
Thinking of changing your insurance- This is the time of year when dental insurance selections are made by many people. If you’re confused or unsure what to do- please give us a call
and we’ll be glad to help you understand your coverage options!
PUTTING YOU ON THE RIGHT TRACK TO A HEALTHY SMILE
COLLINS DENTISTRY FOR CHILDREN Dr. Nilfa Collins, DMD
100 Bridge Street Pelham, NH 603-635-1166 www.collinsdentistry.com
lost or stolen in Somerville, MA, and credit cards used in Salem. 1:43 p.m. Fraud, South Broadway, counterfeit money, report taken. 2:13 p.m. Motor vehicle accident, Mall Road, minor accident, investigated. 2:30 p.m. Motor vehicle accident, Main Street and Lawrence Road, no report taken. 2:41 p.m. Warrant arrest, Veterans Memorial Parkway, arrested Kaitlin Johnson, 18, Salem, Warrant for Simple Assault. 2:56 p.m. Suspicious persons, South Broadway, negative find. 4:29 p.m. Fraud, South Broadway, subject in lobby reporting a fraud using his debit card, report taken. 6:13 p.m. Fraud, Tiffany Road, female in the lobby reporting a fraud involving her social security number, crime did not happen in Salem, no report taken. 6:20 p.m. Motor vehicle accident, Cluff Road, report taken. 6:57 p.m. Suspicious vehicle, Hagop Road, vehicle towed,
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Approved by: NH Board of Nursing 603-635-2211 Belle
Let's go with the new year new insurance and who better to spend it with but the cute dr! Let's focus on the new year and making appts early if you have new insur- ance. We accept most insurance, including Healthy Kids (and MassHealth in Pelham).... yada yada yada!
We guarantee you will fall in love if you would only come to meet us! We'll be looking for you at our
Saturday, Feb. 26th, 11-2pm Pet Adoption Day
at the First Congregational Church in Pelham. To see a
complete listing of our dogs and cats
. Photos courtesy of
"Creations by Sea-Jay" FREE
Doggie Daycare & Training Center
Play Group Sundays, 9:30am
• 70 Range Rd, Windham, NH 890.6239
& Tuesdays, 6:30pm (for puppies up to 6 months)
Puppy please visit SuzyJan Sybil Luther Ad sponsored by Beaver Valley Farms, Pelham, NH
summons issued. 7:50 p.m. Drug offense, Geremonty Drive, report taken. 8:09 p.m. Disturbance, Red Roof Lane, issue with a special needs juvenile, officer standing by to maintain order, juvenile released to responsible party. 8:23 p.m. Motor vehicle complaint, Rockingham Park Boulevard and South Broadway, report of vehicle all over the road, arrested Carl Carlson, 34, Portsmouth, Driving After Revocation. 8:38 p.m. Motor vehicle accident, South Broadway, information exchanged, no report taken. 8:53 p.m. Dispute, Shore Drive, female told not to return or she will be arrested, investigated. 9:29 p.m. Theft, Mall Road, vehicle broken into, report taken. Tuesday, February 8: 12:20 a.m. Motor vehicle accident, Route 111 and Zachary’s Crossing, negative find. 2:05 a.m. Assist other agency, Pelham Police Department, Pelham requesting Salem Police Department to respond to their agency, services rendered. 2:56 a.m. Suspicious vehicle, Main Street, no action. 3:51 a.m. Motor vehicle accident, South Broadway, vehicle into a snowbank, services rendered. 4:14 a.m. Motor vehicle accident, Route 111 and Zachary’s Crossing, services rendered. 5:29 a.m. Snow/ice complaint, Lake Shore Road, vehicle being moved off of the road, services rendered. 10:26 a.m. Theft, South Broadway, vehicles broken into in the lot, report taken. 11:15 a.m. Motor vehicle complaint, South Broadway, negative find. 12:15 a.m. Motor vehicle complaint, Route 111 and Autumn Woods Road, negative find. 2:50 p.m. Motor vehicle complaint, South Broadway, vehicle possibly rolled out of gear and bumped another car, officer able to move the car off of the other, services rendered. 3:23 p.m. Structure fire, South Broadway, negative on a fire, contractor fixing the heating system at the store. 3:30 p.m. Motor vehicle accident, Zion Hill Road, bus company reporting a bus hit by a vehicle that also hit another vehicle and fled. 3:33 p.m. Warrant arrest, Veterans Memorial Parkway, juvenile arrest, Warrant for Harassment. 4:17 p.m. Soliciting, Old Farm Road, subjects for Anderson Windows will be in the area going door to door. 4:36 p.m. Suspicious vehicle, North Broadway, summons issued.
Septic Systems • Sewer Hook-ups, etc. Gravel • Fill • Loam • Sand
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Residential & Commercial Excavating & Grading
38 SCHOOL ST., SALEM, NH 603-898-2236
unions and employers would continue to be subject to evergreen provisions. For all other contracts, whether they were signed while the evergreen law was in place or after it was repealed, public employees would not see automatic salary step increases once the contracts expire. “We will continue to adhere to our Republican Agenda,” added Bettencourt. “The people of this state have given us a trust and today is just one example of how we intend to follow through with our promises. I urge Governor Lynch to do the right thing for our cities and towns and promptly sign this into law.”
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