Governments can impose income and excise taxes, with income tax based on earnings and applied with progressive, flat rate, or regressive systems. Excise taxes are indirect and often applied to specific goods, while sales taxes are proportional to value. Direct taxes are paid by the payer without intermediaries, and can be based on ability to […]
Fiscal consolidation aims to reduce deficits and debt accumulation, improving financial stability for governments, businesses, and households. It involves identifying ways to cut existing debt and minimize new debt through efficient spending. Advocates and critics debate its advantages and disadvantages. Fiscal consolidation is a term used to describe the creation of strategies that aim to […]
A progressive tax is a tax system used in many countries, including the US, where those who earn more pay a higher percentage of their income in taxes. The tax rate increases as income increases, but there are ways to lower the percentage. Some people support it as fair, while others propose a flat or […]
Tax revenue is collected by governments through various types of taxes, including income, property, and sales taxes. It is used to finance public works, defense, education, and social welfare programs. Failure to pay taxes can result in penalties and fines. Tax revenue generally refers to the money collected by governments as a result of taxes […]
Corporate tax managers prepare and manage a company’s taxes, conduct research on tax laws, provide tax advice, and work with external auditors. A bachelor’s degree in accounting, four or more years of experience, and a CPA credential are usually required. Continuing education can provide specialized knowledge for those with general accounting experience. A corporate tax […]
A tax court petition is filed by a taxpayer disputing a claim by the IRS after an audit. It must be filed within 90 days of receiving a “Notice of Deficiency”. The US Tax Court offers two options for seeking legal relief, a small lawsuit and a tax trial. The court also handles cases in […]
Biofuel is a sustainable and clean energy source made from vegetable oils and animal fats, but it is more expensive than conventional fuel. The US biofuel tax credit pays qualified businesses and producers to offset costs and encourage use. Receipts must be saved for purchases to receive the correct amount of credit. Rules differ for […]
Using biodiesel instead of traditional fuels can reduce harmful emissions. Governments offer biodiesel tax credits and exemptions to promote clean air and renewable resources. Biodiesel is made from renewable resources and can be used in combination with fossil fuels. Producers and equipment manufacturers may be eligible for tax benefits. Contributing to the reduction of fossil […]
A tax identification number is a numerical designation assigned to a business entity to identify it for tax purposes. It is required in many countries before a company can operate and can be revoked if the business is not operating within the necessary legal perimeters. Often referred to as a tax identification number, a tax […]
Starting a tax business requires research, preparation, and education in tax preparation. Deciding on the types of customers and taxes to handle, obtaining insurance and licenses, and advertising to build clientele are also important steps. Being able to start a tax business is similar to starting any other type of business because it starts with […]
Quarterly estimated taxes are payments made four times a year to avoid late or underpayment penalties. Self-employed individuals and employers may pay taxes from various sources of income. The calculation to determine quarterly estimated taxes may include filing categories and tax brackets based on annual income levels. The system for paying quarterly estimated taxes can […]
Inheritance tax exemptions include minimum, family, and charity exemptions. Family members have higher exemptions, making it financially beneficial to bequeath property to them. Estate tax exemptions include spousal and family exemptions, with different levels of exemption based on the relationship. Minimum tax thresholds and charity exemptions are also available. Inheritance tax exemptions can include items […]
Rental property tax deductions vary by jurisdiction, but can include travel expenses, property maintenance, interest on loans, insurance, property depreciation, local taxes, and employee costs. Homeowners in the US can deduct purchase price and repair costs, while UK landlords can choose between a standard allowance or deducting replacement costs. Professional landlord expenses like travel, advisors, […]
Governments offer investment tax credits to incentivize certain types of investments that can boost the economy, such as energy and business investments. Qualifications and credit percentages vary by jurisdiction and are generally based on specific spending amounts and savings reductions. Proof of investments and supporting documents are required to claim the credit. An investment tax […]
Self-employed individuals can deduct half of their Social Security and Medicare taxes and general business expenses, including home office supplies and health insurance costs. Careful record-keeping is necessary for deductions, and only expenses specifically used for business may be deducted. Salaried employees are not eligible for this deduction. Self-employment tax deductions can benefit self-employed individuals […]
Property tax depreciation allows owners of business properties to write off the value lost over time, reducing their annual tax burden. The straight-line method is used to calculate depreciation over 27.5 years for residential buildings and 39 years for non-residential buildings. Land is not depreciable, and the building’s use determines the depreciation period. Depreciation expense […]
A tax refund can be a partial or full amount of money refunded to individuals for taxes paid or an amount by which taxes are reduced before payment. It can be a one-time event or a program like the Earned Income Credit (EIC) in the US. Some tax refunds have specific requirements, and it’s essential […]
Taxpayers in the US can request a tax return transcript from the Internal Revenue Service (IRS) by calling or filing form 4506-T, which provides an option to request a tax account transcript. The transcript shows key information from the tax return, but not amendments or annexes. There is no charge for a tax return transcript, […]
Auto taxation is the collection of taxes on motor vehicles to finance road maintenance, public transportation, and related matters. Taxes vary depending on the government and type of vehicle, and can include sales tax, registration fees, and congestion taxes. Non-payment results in fines. Auto taxation is the collection of taxes on motor vehicles, generally to […]
Tax managers are responsible for reviewing tax regulations, offering advice, and preparing tax returns for individual or corporate clients. They require knowledge of local tax regulations and changes that may affect clients. Tax managers develop strategies to minimize clients’ tax burden and prepare tax returns based on professional knowledge of clients’ circumstances. They can work […]
