IRS Form 4506 T is entitled Request for Transcript of Tax Return. This form is a may be used to evaluate a borrowers creditworthiness to obtain any type of loan but it is used mainly for any kind of mortgage loan. It is used to a transcript summary of an individual’s tax information to verify the income stated on the loan application made to qualify for the loan.

Lenders use the form for “Quality Control”, to verify income of the “self-employed” and to detect fraud. Many lenders do a quality control check on the mortgage files they receive every day–mostly it is decided that a certain number of files a day (like every 4th file received)or any file from a “new” broker/loan officer will be thoroughly checked by the mortgage company/bank. After the file is underwritten, the file will be given to another person who will verify everything in the file. Every person who has signed any kind of verification forms will be called again to verify that he/she did write and sign that paper. Every checking or savings or asset letter will be re-verified and so will the income. If your 1040’s & w2s or 1099s were included in the file, the 4506T is used to request a quick print-out which summarizes your tax returns looked like for the year/s you have provided. This summary transcript verifies the paperwork given to the lender.

This quality control and 4506T should stop any fraudulent loans from happening. If the IRS transcript shows less income than the the income represented on the loan application, then the lender can either stop the mortgage process and deny the loan or if the loan is already in place, the applicant can be asked to payoff the mortgage/loan immediately due to apparent fraud. “Legal action” can be taken, it depends on the lender and/or the state (if they become involved)as to what action will be taken against the customer, the broker/loan officer and/or both if involved.

@IRSTax

The head of household filing status is for taxpayers who are either unmarried and not an RDP or meet the requirements to be considered unmarried or considered not in a registered domestic partnership and maintain a home for a relative who lived with them for more than half the year.

Registered Domestic Partners (RDPs)

Effective for taxable years beginning on or after January 1, 2007, RDPs under California law must file their California income tax returns using either the married/RDP filing jointly or married/RDP filing separately filing status. RDPs will have the same legal benefits, protections, and responsibilities as married couples unless otherwise specified. For more information on RDPs, see FTB Pub. 737, Tax Information for Registered Domestic Partners.

If you are an RDP, you may qualify to use the head of household filing status if both of the following apply:

• You are in the process of ending your relationship.
• You meet the requirements to be considered not in a registered domestic partnership.

General Rules

Do I qualify for head of household?

You are entitled to the head of household filing status only if all of the following apply:

• You were unmarried and not an RDP or met the requirements to be considered unmarried or considered not in a registered domestic partnership as of the last day of the year.
• You paid more than one-half the costs of keeping up your home for the year.
• Your home was the main home for you and a qualifying person who lived with you for more than half the year.
• The qualifying person was related to you and met the requirements to be a qualifying child or qualifying relative.
• You were entitled to a dependent exemption credit for your qualifying person.  However, you do not have to be entitled to a dependent exemption credit for your qualifying child if you were unmarried and not an RDP and your qualifying child was also unmarried and not an RDP.
• You were not a nonresident alien at any time during the year.

@IRSTax

To encourage their employees to purchase environmentally friendly hybrid cars, several companies reportedly are offering “rebates” or cash incentives to their employees in select areas to offset the purchase price of these vehicles. Just like other forms of compensation, these cash incentives are taxable compensation.

Employers should include the cash incentive amounts in employees’ compensation reported on year-end Form W-2 earnings statements. The cash incentives also are subject to income tax withholding and employment tax. The tax code provides for an exclusion from income for employee discounts only if the employer produces the product and certain other requirements are met.

The tax code already includes incentives for the purchase of hybrid cars. The Alternative Motor Vehicle Credit for hybrid vehicles applies to vehicles purchased on or after Jan. 1, 2006, and it may be as much as $3,400 for those who purchase the most fuel-efficient vehicles.

@IRSTax

Points for the mortgage. They should be on the 1098 you received from the lender, though, so don’t add them if they were.

Property taxes credited to the seller are considered as paid by you and should be added to any other property taxes you paid in the year of closing. Property taxes credited to you are considered paid by the seller and should be subtracted from any property taxes you pay in the year of closing.

Prepaids (other than mortgage interest, which will show up on the 1098) have no tax consequences, they are just deposits towards future bills.

All other closing costs on your side of the HUD-1 can be added to your basis for the home. This will reduce your gain on sale when you eventually do sell.

@IRSTax

In certain circumstances, you do not need to claim the child as a dependent to qualify for head of household filing status, such as when the qualifying child is unmarried and is your child, grandchild, stepchild, or adopted child.

@IRSTax

If you are an unmarried dependent, you must file a tax return if your earned and/or unearned income exceeds certain limits.

• To find these limits refer to Filing Requirements for Dependents in Publication 501, Exemptions, Standard Deduction and Filing Information.
• Even if you do not have to file, you should file a federal income tax return to get money back if any of the following apply:

Refer to Publication 501, Exemptions, Standard Deduction and Filing Information for an explanation of the five exemption tests and filing requirement rules.

No. 1 Anchorage, Alaska

Income tax: $0
Property tax: $2,572
Sales tax: $0
Auto tax: $165

STATE & LOCAL TAX BURDEN: 3.6%
(National median tax burden: 8.5%)

Urban Facts: Taxes? Residents of Anchorage actually receive an annual “dividend” payment derived from levies on state oil drilling operations.

In sheer geographic size, the city of Anchorage is larger than the state of Rhode Island. It is home to 42% of all Alaskan residents.

No. 2 Manchester, New Hampshire

Income tax: $0
Property tax: $2,349
Sales tax: $0
Auto tax: $493

STATE & LOCAL TAX BURDEN: 3.8%

Urban Facts: New Hampshire’s favorable tax structure and Manchester’s proximity to Boston makes it an attractive residence for flinty New Englanders.

No. 3 Cheyenne, Wyoming

Income tax: $0
Property tax: $1,326
Sales tax: $1,512
Auto tax: $665

STATE & LOCAL TAX BURDEN: 4.7%

Urban Facts: Levies on mining and oil account for nearly half of the Equality State’s tax revenues. Cheyenne is in close proximity to the geographical center of North America.

No. 4 Seattle, Washington

Income tax: $0
Property tax: $1,698
Sales tax: $1,561
Auto tax: $457

STATE & LOCAL TAX BURDEN: 5.0%

Urban Facts: Seattle may be a tax-friendly city, but it also has a high cost of living, well above the national average.

The median home sales price was $375,000 for last quarter of 2008, compared to $200,000 at the national level.

No. 5 Las Vegas, Nevada

Income tax: $0
Property tax: $2,251
Sales tax: $1,072
Auto tax: $486

STATE & LOCAL TAX BURDEN: 5.1%

Urban Facts: Gaming taxes account for 27% of the state’s general revenue funds.

The city’s rapid growth a few years ago that drew more than 5,000 new residents every month was propped up on subprime lending. Now Las Vegas has the highest foreclosure rate among U.S. cities.

No. 6 Jacksonville, Florida

Income tax: $0
Property tax: $2,456
Sales tax: $1,284
Auto tax: $195

STATE & LOCAL TAX BURDEN: 5.2%

Urban Facts: The state intangibles tax on certain investments was repealed in 2007.

Jacksonville is the third-most populous city on the East Coast, after New York City and Philadelphia. (Other cities such as Boston, Washington, D.C., and Miami have larger metropolitan area populations.)

No. 7 Sioux Falls, South Dakota

Income tax: $0
Property tax: $2,760
Sales tax: $1,518
Auto tax: $294

STATE & LOCAL TAX BURDEN: 6.1%

Urban Facts: In fiscal year 2007, lottery gaming put $110 million in the state till to provide a 30% property-tax relief.

Sioux Falls has the largest shopping center between Minneapolis and Denver.

No. 8 Phoenix, Arizona

Income tax: $1,241
Property tax: $1,401
Sales tax: $1,849
Auto tax: $588

STATE & LOCAL TAX BURDEN: 6.8%

Urban Facts: Tax information for Phoenix includes the entire metropolitan area which extends to cities of Scottsdale, Mesa, Tempe, Mesa, Chandler, Gilbert, Glendale and Peoria. But housing prices and local tax can vary significantly from locality to locality.

No. 9 Billings, Montana

Income tax: $2,559
Property tax: $1,865
Sales tax: $0
Auto tax: $689

STATE & LOCAL TAX BURDEN: 6.8%

Urban Facts: Billings taxpayers with adjusted gross incomes of less than $30,000 can exclude up to $3,600 of their pension income from state taxes.

Dubbed locally as the “Magic City,” Billings is supporting growth by dunning its energy, agriculture, and transportation industries.

No. 10 Chicago, Illinois

Income tax: $2,019
Property tax: $1,023
Sales tax: $1,624
Auto tax: $478

STATE & LOCAL TAX BURDEN: 6.9%

Urban Facts: Chicago’s effective real-estate tax rate of .70% and various exemption programs keep real property tax low. Just keep in mind that this surprisingly tax-friendly city doesn’t offer the same breaks for other cost-of-living expenses.

@IRSTax

You need to file an Idaho Non Resident form 40NR

The Idaho State Tax Commission can help you thru the process if you need them.

Their website is: http://tax.idaho.gov/index.html

They also have a very helpful staff for individuals that forgot to file at : Forgot_to_File@tax.idaho.gov

Their Telephone # is toll free at (800) 972-7660

The Mailing address is :

Idaho State Tax Commission
800 Park Blvd.
PO Box 36
Boise, Idaho 83722-0410

Their Hours are 8-5 M-F MST closed all legal holidays

Idaho filling requirements for non-residents are

$2500 of Income from Idaho employers or $2500 earned from all sources while living in Idaho.

@IRSTax

If you itemize you can deduct either your income tax or sales tax paid during the year. Even if you elect to deduct the sales tax you paid you don’t have to save all of your receipts. You can save them or you can use a table the IRS has that shows the average amount of sales tax a taxpayer who has the amount of income you have would spend. Also, if you elect sales tax you can add tax from certain large purchases, such as SUV, RV, boat, offroad vehicles, etc.

You have to look at both and see which is largest.

@IRSTax

Under the general instructions of this form (2nd page of pdf file) it states under signature and date “Form 4506-T must be signed and dated by the taxpayer listed on line 1a or 2a”.

Form 4506-T (Rev. January 2011)

@IRSTax