Inheritance tax can cause financial burden for heirs, but there are ways to avoid it such as giving away property before death or setting up a trust. Charitable donations can also avoid tax. Restrictions and laws vary between jurisdictions. Under certain circumstances, people who receive your property after your death may have to pay an […]
The Tobin tax is a transaction-based tax designed to limit currency speculation and stabilize currencies. It would impose a small tax on individual transactions, penalizing speculators who make a large number of small spot trades, while allowing non-speculators to trade currencies without interference. Some countries have discussed implementing the tax, but there is resistance from […]
Tax swaps involve selling a declining security and purchasing a similar but higher-priced security to create a loss for tax purposes. While legitimate, there is risk involved if the original security reverses or the newly acquired security declines too much. Tax swaps are strategies that involve the sale and acquisition of two different but similar […]
Tax reduction is a decision to reduce or eliminate taxes for a certain group or cause, but it can lead to a reduction in government revenue and controversial measures. It can be used to promote economic recovery, relieve financial burdens, or encourage support for government initiatives. It can also become political and affect government representatives’ […]
Many people lack knowledge about tax-deductible expenses, especially those who run home businesses. Tax-deductible expenses must meet three requirements and can be determined through government guidelines or by consulting professionals. It is important to properly classify expenses to avoid delays in accepting annual tax returns. Many people know little about what kinds of expenses can […]
Scarlett O’Hara in Gone with the Wind faced financial trouble when taxes on her home rose beyond her means. Today, tax sales occur when people fail to pay taxes, resulting in tax lien or tax deed sales where people can acquire property by paying back taxes. Tax deed sales can offer opportunities to buy property […]
Tankless water heater tax credits incentivize homeowners to switch to more energy-efficient water heaters, reducing a nation’s carbon footprint. Requirements vary by country, but may include documentation and BTU limits, with credits calculated as a percentage or fixed sum. Governments may also offer tax credits for solar-powered appliances. A tankless water heater tax credit is […]
To choose the best professional tax preparation software, use free trials to test features and ease of use. Seek recommendations and read online reviews. Compare software based on desired features, such as electronic filing and syncing with other programs. When you want to choose the best professional tax preparation software, one way to compare programs […]
Self-employed individuals in the US must pay the self-employment tax, which includes Social Security and Medicare taxes. The tax rate is subject to change and must be paid throughout the year. If net earnings are $400 or more, the tax must be paid. In the United States, the self-employment (SE) tax is the tax that […]
The federal gas tax in the US is a tax on the sale of gas and diesel fuel at the pump, with revenue directed towards funding interstate highway repairs and other expenses. The tax was first introduced in 1932 and has steadily increased through various legislative acts. It is used to finance the US Highway […]
An international tax manager ensures a multinational company complies with tax laws in each country it operates in, while also saving money by using tax laws to the company’s advantage. They must have a degree in accounting, language skills, and knowledge of national and international laws. They calculate overall tax liability, keep up with legislative […]
US citizens and resident aliens must pay tax on worldwide income, including income earned while living abroad. The IRS offers two foreign tax exemptions, including the Foreign Earned Income Exclusion, which allows taxpayers to exclude a certain amount of foreign income from taxable income. Taxpayers who qualify for the Foreign Earned Income Exclusion generally qualify […]
Gas tax rebates are refunds given by governments to citizens or cities to alleviate high pump gas prices or stimulate the economy. They can be direct or indirect, and may be required for low-income residences. Gas taxes are necessary for most economies, but vulnerable to energy price volatility. Gas tax increases and rebates are often […]
Closing tax loopholes can be done through enforcing tax code rules or enacting new legislation. It is estimated that closing tax loopholes in the US entirely could generate an additional $1 trillion in revenue annually. Major corporations use offshore tax havens to reduce their tax liability, costing billions in revenue. Closing tax loopholes requires new […]
A tax book is a ledger that records tax-relevant information, including income, deductions, and payments to tax agencies. Using ledger software can streamline financial recording and generate reports. It can also be used to track sales tax for businesses. A tax book provides a space to record tax-relevant information to facilitate record-keeping throughout the year. […]
The role of a tax collector has evolved from ancient times and is now primarily done through automated systems and the internet. The negative connotation has led to alternative terms such as auditors or account controllers, and corruption is increasingly difficult to hide. IRS agents may visit wealthy individuals or businesses, but it is recommended […]
The American Opportunity Tax Credit is a temporary tax credit for college students and parents with children in college. It is partially refundable and applies only to tax years 2009 and 2011. Eligibility is based on income and student status, and it covers not only tuition but also fees for books and materials. It can […]
US taxpayers must pay income tax through withholding or estimated tax. Employers withhold a percentage of paychecks based on exemptions claimed on Form W-4. Taxpayers can claim exemptions for themselves, spouses, and dependents, which reduce taxable income. Withholding exemptions are not the same as deductions, which are subtracted from taxable income. At the end of […]
Tax rates vary based on income and are calculated using tax brackets in a progressive system. Flat tax systems have a fixed rate, while sales tax is a form of flat tax. Understanding tax rates is important for financial planning and reducing taxes. A tax rate is the percentage of your taxable income, which in […]
Tax preparation involves completing a tax return to determine tax liability and potential refunds. Taxpayers can do it themselves or hire a licensed professional to help. Gathering necessary paperwork and accurately filling out forms is crucial. Professionals can save money by identifying areas of savings and reducing tax liability. Tax preparation is the process of […]
