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
HM Revenue and Customs (HMRC) is the UK government department responsible for collecting taxes, including tax credits. Tax credits are a type of financial support for low-income and working families. HMRC deals with tax credits by processing claims, calculating payments, and making sure that people are getting the correct amount of support. HMRC also provides … Read more
Liquidated damages refer to the compensation specified in a contract for damages that may result from a breach of its terms. These damages are distinct from actual damages incurred, which are determined after a breach occurs. Whether liquidated damages constitute taxable income depends on the specific circumstances and the intent of the contracting parties. Generally, … Read more
TurboTax has incorporated the latest unemployment tax law changes into its software. These updates reflect the American Rescue Plan Act and other recent legislation, ensuring that users can file their taxes accurately and efficiently. Taxpayers can rest assured that TurboTax will guide them through the necessary steps to account for unemployment compensation received in 2020 … Read more
A W9 form, also known as a Request for Taxpayer Identification Number and Certification, plays a crucial role in tax administration. It is used to collect essential information from individuals or businesses who receive payments from other parties. The W9 helps the payer accurately report the payments made to the recipient and ensures that the … Read more
If you receive a TPD payout, it’s important to understand your tax obligations. TPD payouts are generally tax-free, but there are some exceptions. For example, if you receive a lump sum TPD payout, you may need to pay tax on the earnings portion of the payout. Additionally, if you receive regular TPD payments, they may … Read more
World Bank employees are typically exempt from paying taxes on their salaries. This is because the World Bank is an international organization that is not subject to the laws of any one country. As a result, its employees are not required to pay taxes on their income to the countries in which they live. However, … Read more
. Filing FICA Taxes As a business owner or employer, you’ll need to remit FICA taxes, which are made up of Social Security and Medicare taxes. There are two ways to do this: through EFTPS or by paper forms. Here’s what you need to know about these methods and their respective steps and requirements. Electronic … Read more
When it comes to taxes on a car allowance, it depends on how the allowance is structured. If the allowance is part of your taxable income, then you’ll owe taxes on the full amount. However, if the allowance is considered a reimbursement for car expenses, then you may only owe taxes on the portion of … Read more