RESP contributions made from after-tax income are not tax-deductible, so you won’t receive a tax receipt for them. However, you will still receive the government grant of 20% on your contributions, up to a maximum of $500 per year. The grant is paid directly to the RESP, so you don’t need to claim it on … Read more
The use of automation in the tax industry holds substantial potential benefits. Automation can enhance accuracy, reduce manual labor, automate repetitive processes, and provide more consistent tax filing. Natural language processing (NLP), a subset of artificial intelligence, empowers computers to understand and process human language. NLP-driven tax automation tools can analyze complex tax codes, extract … Read more
Promotional giveaways can be a great way to market your business and generate leads. But can you deduct the cost of these giveaways on your taxes? The answer is yes, but there are some conditions that must be met. First, the giveaways must be ordinary and necessary expenses for your business. This means that they … Read more
Uninsured motorist claims compensate victims for damages caused by drivers without insurance. Typically, these claims are not taxable because they’re considered a form of reimbursement for expenses, like medical bills and lost wages, rather than income. This is due to the fact that you are not receiving a windfall or a profit from the claim, … Read more
Payments made under the Civil Liberties Act of 1988, which compensated Japanese Americans for their internment during World War II, are generally not taxable. These payments were intended as a form of reparations for the discrimination and hardship they faced. The Internal Revenue Service (IRS) has ruled that these payments are not taxable because they … Read more
Individuals and businesses in need of tax forms can easily access them through various channels. The official website of the Internal Revenue Service (IRS), irs.gov, provides a comprehensive collection of federal tax forms for download in various formats, including fillable PDFs and plain text versions. Additionally, many tax software programs offer built-in access to the … Read more
Prison for tax evaders can vary depending on the severity of the crime and the jurisdiction. Typically, tax evaders face significant consequences, including lengthy prison sentences and substantial fines. In the United States, for example, tax evasion can result in up to five years in prison for each year of unpaid taxes, with fines reaching … Read more
For U.S. citizens residing in Guam, understanding tax obligations is crucial. While federal income tax laws generally apply to all U.S. citizens, specific provisions exist for Guam residents. Under the Internal Revenue Code, Guamanians are exempt from paying federal personal income tax on income earned and sourced within Guam. However, they are still responsible for … Read more
Franking credits, which are attached to dividends paid by Australian companies, are not included in a shareholder’s taxable income. Instead, they offset the tax payable on other income received by the shareholder. This means that franking credits can reduce the shareholder’s overall tax liability and potentially result in a tax refund. However, it’s important to … Read more
The Child Tax Credit is a tax break for families with children under the age of 17. It is available to both working and non-working families, and the amount of the credit depends on the family’s income and the number of children they have. In 2021, the maximum credit was $3,600 per child under the … Read more