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
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