Filing ITR On April 15?

[KuyaDanny]

Technically, the clinic is not your employer, because you have been paid professional fees, and not salaries. So it cannot refund you the amount overwithheld.

That leaves you to collect from the government. There are three options.

1) Tax Refund. That process is a royal pain in the butt. It involves an investigation at the BIR side, and your clinic might be asked to send supplementary documents. The process could take up to a year before you get to see your money.

2) Tax Credit Certiificate (TCC). This option is still indicated in the ITR, but the BIR rarely processes requests for these as there have been scams involving TCCs in the past.

3) Leave the amount to be carried over. This is what I suggest, as the credit does not expire and you can use the credit to settle tax liabilities for future years, during which your income will most likely be more that what you earn today.

[Burkholderia]

Technically, the clinic is not your employer, because you have been paid professional fees, and not salaries. So it cannot refund you the amount overwithheld.

That leaves you to collect from the government. There are three options.

1) Tax Refund. That process is a royal pain in the butt. It involves an investigation at the BIR side, and your clinic might be asked to send supplementary documents. The process could take up to a year before you get to see your money.

2) Tax Credit Certiificate (TCC). This option is still indicated in the ITR, but the BIR rarely processes requests for these as there have been scams involving TCCs in the past.

3) Leave the amount to be carried over. This is what I suggest, as the credit does not expire and you can use the credit to settle tax liabilities for future years, during which your income will most likely be more that what you earn today.

Option #3 then! Thank you so much po!

[Burkholderia]

Hi everyone! As April 15 nears, I realized there are still some things that I need to clarify about BIR Form 1701. I tried calling BIR Contact center but I can’t get through so I do hope you’ll be all patient to enlighten me. I work as a clinic physician but I’m not a regular employee, hence, I have to file the ITR on my own.

1. As I read the previous comment of Kuya Danny that technically, the clinic is not my employer, I figured out that I should classify my income as "income from profession" rather than "compensation income". Besides, the 40% OSD can only be deducted from income from business/profession and not from the compensation income, right?

3. I survived page 3 but when I turned to the next page, I got confused again. There is this Schedule 1 (Gross Compensation Income and Tax Withheld). The clinic already withheld 10% from my gross income each payday and as advised by Kuya Danny, I was able to get a Form 2307 from them. My question is: Is there where I enter the information about the tax withheld from me by the clinic? Wouldn’t that be conflicting because I initially classified my income as income from profession and not as compensation?

4. Am I right to assume that the latter part of the form doesn’t apply to me anymore (computation of NOLCO, reconciliation of net income per books, estate trusts, etc)? Do I just leave the spaces blank, or put “zero”, or write “not applicable”?

5. As predicted by Kuya Danny previously, the withheld tax from my income is more than my tax due. I’m also sure I didn’t any incur penalties. Tama ba na ang ilagay ko sa “Total Amount Payable” and “Amount of Tax Required to be Paid Upon filing this Return” ay 0.00 or –X,XXX.00 (if there is such a thing) And because I’m not going to pay anything, do I leave Part IV/Details of Payment blank also?

6. How much do I pay for the community tax certificate? Is it 1% of my annual gross income?

I’m sorry for the long post. I don’t want to pay an accountant P2000-5000 just to answer the form and well, file the ITR for me. I also want to have the ITR filing experience. However, if the experience is too much for me to handle, e di next year na lang ako mag-hire ng accountant. But for the meantime, I humbly ask for your guidance. I will appreciate any inputs. Thank you very much!

[KuyaDanny]

1. As I read the previous comment of Kuya Danny that technically, the clinic is not my employer, I figured out that I should classify my income as "income from profession" rather than "compensation income". Besides, the 40% OSD can only be deducted from income from business/profession and not from the compensation income, right?

Right.

3. I survived page 3 but when I turned to the next page, I got confused again. There is this Schedule 1 (Gross Compensation Income and Tax Withheld). The clinic already withheld 10% from my gross income each payday and as advised by Kuya Danny, I was able to get a Form 2307 from them. My question is: Is there where I enter the information about the tax withheld from me by the clinic? Wouldn’t that be conflicting because I initially classified my income as income from profession and not as compensation?

Enter your gross income in Line 56 Page 3, not gross compensation income.

Line 35G/H on Page 2 is where you enter the amount of tax withheld by the clinic

4. Am I right to assume that the latter part of the form doesn’t apply to me anymore (computation of NOLCO, reconciliation of net income per books, estate trusts, etc)? Do I just leave the spaces blank, or put “zero”, or write “not applicable”?

Leave them blank. These are not applicable to you.

5. As predicted by Kuya Danny previously, the withheld tax from my income is more than my tax due. I’m also sure I didn’t any incur penalties. Tama ba na ang ilagay ko sa “Total Amount Payable” and “Amount of Tax Required to be Paid Upon filing this Return” ay 0.00 or –X,XXX.00 (if there is such a thing) And because I’m not going to pay anything, do I leave Part IV/Details of Payment blank also?

Indicate the amount of overwithholding by a negative sign or enclose the same in parentheses such as this : (8,097.65). Important - also mark the space (to be carried over, as tax credit, for the next year/quarter) in Line 44 after you have filled in the amount.

Leave Part IV blank.

6. How much do I pay for the community tax certificate? Is it 1% of my annual gross income?

There is a basic tax of P5.00 plus 0.1% of your annual gross income.

I’m sorry for the long post. I don’t want to pay an accountant P2000-5000 just to answer the form and well, file the ITR for me. I also want to have the ITR filing experience. However, if the experience is too much for me to handle, e di next year na lang ako mag-hire ng accountant. But for the meantime, I humbly ask for your guidance. I will appreciate any inputs. Thank you very much!

I think you are doing the right thing. Mabuhay ka. When taxpayers do these things by themselves, they will better understand the burden their government puts on them, and maybe will try to become better citizens by making their government more accountable.

[KuyaDanny]

I just examined the form again. There is no space for parentheses when indicating negative amounts. This is a potential source of error when those robots at the BIR start encoding.

I think it is better to put a minus sign in the box . If you are handwriting your return, blue ink is recommended so it can be clearly distinguished as part of the data and not some random stain.

[KuyaDanny]

ftp://ftp.bir.gov.ph/webadmin1/zip/bir_iaf_1701.zip

BTW, there is an interactive PDF version of the new Form 1701 which you can download from the BIR and fill up yourself using Adobe Reader. However, you cannot save your data (maybe BIR did not have the budget to buy a proper license). It can do the basic arithmetic and calculate your tax due. It prints out a neat ITR on 8 1/2 x 13 sheets. It takes a while to navigate the form, though.

Even if you use this interactive form, you are still urged to review everything in the return before you sign and submit.

[Burkholderia]

ftp://ftp.bir.gov.ph/webadmin1/zip/bir_iaf_1701.zip

BTW, there is an interactive PDF version of the new Form 1701 which you can download from the BIR and fill up yourself using Adobe Reader. However, you cannot save your data (maybe BIR did not have the budget to buy a proper license). It can do the basic arithmetic and calculate your tax due. It prints out a neat ITR on 8 1/2 x 13 sheets. It takes a while to navigate the form, though.

Even if you use this interactive form, you are still urged to review everything in the return before you sign and submit.

Kuya Danny! Thank you so much for taking the time to guide and enlighten us regarding this matter. And thank you too for the generous comments. Ang thinking ko kasi I have to do first my obligation sa government (filing the appropriate taxes, etc) before I have the right to complain/criticize/or demand from them to show me where do my taxes go.

I already downloaded the interactive PDF version. It was easy na for me to navigate the form because I already have an Excel file of Form 1701 that I've been trying to fill-up, hence the many questions last night. However,I just tried it and I highly recommend this interactive PDF file for those na first time mag-fill-up ng Form 1701. My plan is dito na ako mag-fill-up then print na lang. No need for an accountant!

Ang liit lang pala ng community tax! Yey! When I applied for a PTR early this year, the municipal office in Las Pinas computed it as 1% of my annual gross income. Tapos di na binalik sa akin yung copy ko ng CTC so I have to get a new one for the ITR filing. When I'm making my April budget, I computed it as 1% so meron akong sobra na 0.9% for savings!

By the way, can I declare my Philhealth premium for 2011 as an additional deduction? I kept the receipt pero dun sa interactive PDF file, di siya highlighted so I can't plug-in the value for that...

Kuya Danny, based dun sa interactive file, kapag negative yung value or under sya sa deductions, automatic ng nag-appear na yung value ay naka-enclose sa parentheses. But I will probably put na lang rin the minus sign beside the value for more emphasis.

[KuyaDanny]

Please! If the PDF generates the parentheses for you, that should be good enough. Do not add the minus sign.

Baka may pilosopong examiner na magsabi negative na may parentheses ay double negative, therefore positive, at may utang ka pa. Tapos hihingi ng lagay para maareglo. You do not deserve that headache.

[KuyaDanny]

Medyo foul yata yung ginawa ng taga-munisipyo ng Las Pinas sa CTC mo. Overcharged ka na, wala pang CTC na iniwan sa iyo? Sigurado ka bang may CTC talaga? Baka binulsa na lang niya yung pera?

[Burkholderia]

Please! If the PDF generates the parentheses for you, that should be good enough. Do not add the minus sign.

Baka may pilosopong examiner na magsabi negative na may parentheses ay double negative, therefore positive, at may utang ka pa. Tapos hihingi ng lagay para maareglo. You do not deserve that headache.

Hahaha! Natawa ako dito sa pilosopong examiner. Will leave the PDF as it is na lang. Thanks Kuya Danny for the heads-up!

[Burkholderia]

Medyo foul yata yung ginawa ng taga-munisipyo ng Las Pinas sa CTC mo. Overcharged ka na, wala pang CTC na iniwan sa iyo? Sigurado ka bang may CTC talaga? Baka binulsa na lang niya yung pera?

Looking back, yes, foul talaga siya. He did issue a CTC to me and then I handed it over to the lady who issues the PTR. Kaso yung PTR receipt lang ang ibinalik, di na yung CTC. Partly my fault din because at that time I was thinking, baka "single-use" lang ang CTC kaya di ko na ni-reclaim. Oh well, will be careful dealing with government transactions next time.

[KuyaDanny]

She wants your money.

[kinkylee]

I have 2 employers for 2011 but each employer deducted the 50,000-peso exemption when they filed my ITR 2316. Therefore, I was under taxed and as a result, I owe BIR over 30,000.

If I didn't consolidate my ITR for 2011 and did not pay the tax due, what will BIR do to me?

File a case against me and then I will be imprisoned?

[KuyaDanny]

When they find out, they will first ask you to pay the deficiency. Since it might take some time for them to do that, the amount will include penalties. If you still do not pay, a case could follow, and if you are convicted, yes, maybe you could be imprisoned. Better to avoid the penalties and pay now.

[Burkholderia]

She wants your money.

Scary... I don't want her haunting me for my taxes so better do my part, and better do it right.

I have another question to ask po. Masyado palang masalimuot ang ITR filing at masyadong ring busy ang BIR Contact Center. I just found out when I was able to talk to one of the BIR agents (luckily, I was able to connect after the nth time of dialing) that I'm still registered in the province where I first got employed (RDO 05). I got confused kasi for the past 3 years, I was working in a government hospital in Manila so I thought "automatic" ng ma-uupdate ang records ko. I called the Accounting department of the hospital I previously worked at and inquired about this. She told me that they don't checked na kung saan previously registered yung employee, basta every year, they file the ITRs on RDO 33. She then asked me if I was able to keep my ITRs from them, unfortunately, wala akong natanggap. I asked her if she can provide me copies of the said ITRs but she can't commit if I can get it before the deadline because she's also busy preparing the ITRs of their current employees.

I already faxed Form 1905 to my home RDO requesting transfer of RDO to where I plan to file my ITR (RDO 55). I just need to follow-up after 4 working days if the system has already updated my account.

My questions are:
1. Can I already file my ITR at RDO 55 once my home RDO transferred my records to them even without presenting my previous ITRs from my previous employer (I might not be able to secure copies before the deadline kasi)? Baka kasi ma-question ako bakit nung 2007 lang ako nag-file (ayun lang kasi ang nakalagay sa RDO 05 account ko). Is there a way for them to check the records of RDO 33 and verify that my ITRs were filed in that RDO from 2008-2010?

2. Will I get penalize for filing my ITRs at the wrong venue/RDO? I just read from Manila Bulletin today the article wherein BIR allowed teachers and cops to file their ITRs outside the RDOs where they are registered. Apparently, "under existing regulations, the BIR imposes fines for wrong venue filing, and taxpayers are liable to be charged with tax evasion if evidence warrants" In the first place, I wasn't told by the hospital that I need to submit Form 1905 to update my records. In the second place, bakit tinanggap ng RDO 33 ang ITR ko?

I will try to contact BIR again on Monday (I'm not sure if the hotline is 24/7) but I'm posting this question so I can have peace of mind during the weekend. Si Kuya Danny kasi, dinagdagan pa ang fear factor ko nung pinost nya yung picture ni Ms. Henares.

[KuyaDanny]

1) BIR records are not in the best of shape, and you should assume that when BIR needs to check their records to prove something, they will not be able to successfully do so. That said, I don't think your ITRs from 2008-2010 are needed to be presented when changing your revenue district.

2) BIR has been known in the past to permit out-of-venue filing without penalties. However, this varies from year to year and if they will waive penalties this year, they must announce it soon. Better contact them and get a definite answer.

[Burkholderia]

1) BIR records are not in the best of shape, and you should assume that when BIR needs to check their records to prove something, they will not be able to successfully do so. That said, I don't think your ITRs from 2008-2010 are needed to be presented when changing your revenue district.

2) BIR has been known in the past to permit out-of-venue filing without penalties. However, this varies from year to year and if they will waive penalties this year, they must announce it soon. Better contact them and get a definite answer.

Yup, will contact BIR po. Will update this thread. Thanks Kuya Danny!

[Burkholderia]

Hi! I just filed my ITR today. Ang bilis lang pala! It was a good idea to do it on my own rather than paying P2000-5000 for someone to do it for me. Natuto na ako, nakatipid pa!

I just got my CTC from the city hall yesterday, called the RDO where I plan to file my ITR if my home RDO has already transferred my records (nalipat na daw), filled up the interactive PDF version of Form 1701 and printed it last night then walked (yes, walking distance lang ang RDO from my house) to the RDO today. Since I went there at around 8:30am, there were just a couple of taxfilers ahead of me in the line (sa "no payment returns" pala ako pumila). When it was my turn, the officer just looked at my ITR (I'm not sure if browsed=examined), my Form 2307 and just asked me to photocopy 2 more copies of Form 2307. Conveniently, there's also a xerox machine outside the room. When I went back, he just stamped the 3 copies and gave me the 3rd copy. That's it and it just took me 15 minutes (including the walk)!

Regarding my previous question, re: penalty if wrong venue filing, I'm sorry I still don't have the answer. Di pa rin ako maka-connect sa BIR Contact Service. But judging by the way the officer accepted my ITR without further questions (more so in the case of my previous employer wherein our ITRs were filed in batch at RDO 33), they don't really check if you are registered at their RDO so unless you take it upon yourself to update your information, your records will still be at the same RDO.

I'm just so happy (and extremely proud of myself ) because of this "accomplishment"". Unless my income reaches P150K/quarter next year, I still plan to do this on my own.

My thanks to everyone (especially Kuya Danny) for all the help.

[KuyaDanny]

Congratulations!

Pero hindi pa pala perfect. Kulang ka ng photocopies ng 2307. Ano ba naman yang clinic mo, tinipid ka pa? Yung mga ibang gumagawa ng 2307, tatlong kopya kaagad ang inaabot sa taxpayer para walang abala.

Anyway, I am sure you will agree with me that even though you successfully completed the process, this whole routine is burdensome and can be simplified, right?

[shamashu9]

obey. pay your taxes. it's our obligation.