Inheritances can come with a hefty tax bill for beneficiaries. The amount of tax owed depends on several factors, including the value of the inheritance, the relationship between the beneficiary and the deceased, and the laws of the state where the deceased resided. Generally, spouses and children are exempt from paying taxes on inheritances, but … Read more
Settlements received in court cases can have tax implications. In general, the tax treatment of a settlement depends on the nature of the underlying claim. If the settlement is for lost income, it is typically taxable as income. If it is for personal injury or physical damages, it is generally not taxable. However, if the … Read more
Tax-free pensions are a great way to save for retirement. There are a few things you can do to avoid paying tax on your pension. First, you can make sure that you’re not contributing too much to your pension. The annual allowance for pension contributions is £40,000. If you contribute more than this, you’ll have … Read more
Retrenchment compensation, or severance pay, received by employees is generally taxable as income. This means that it is subject to personal income tax, which varies depending on the employee’s taxable income and applicable tax rates. However, there may be certain exemptions or deductions available under tax laws and regulations that can reduce the amount of … Read more
Ireland’s Threshold for Inheritance Tax In Ireland, the threshold for inheritance tax is currently set at €335,000. This means that if you inherit an estate worth more than this amount, you will be liable to pay inheritance tax on the excess amount. The inheritance tax rate in Ireland is 33%. This means that if you … Read more
Savers credit is a tax credit that helps low- and moderate-income taxpayers save for retirement. The credit is calculated based on the amount of money you contribute to a qualified retirement account, such as an IRA or 401(k). The maximum amount of the credit is $1,000 for single filers and $2,000 for married couples filing … Read more
The deadline for paying your Self Assessment tax bill is usually 31st January after the end of the tax year. If you file your return online, you have an extra 3 months to pay, and the deadline is 31st July. If you cannot pay your tax bill by the due date, you may have to … Read more
If you’ve recently started a new job and are being charged Emergency Tax, you can take a few steps to rectify the situation. Firstly, ensure that you complete and submit a P45 form to your employer. This form helps the employer understand your most recent tax situation and can prevent you from being overtaxed. If … Read more
If you’re wondering whether your taxes may have been offset, there are a few telltale signs to watch for. One is if you’ve received a notice from the IRS or your state tax agency informing you that your refund has been intercepted. Another sign is if you’ve noticed that your tax refund is smaller than … Read more
Contributions to a Roth IRA are made after taxes, which means they are not tax-deductible. However, qualified withdrawals from a Roth IRA are tax-free. This can result in significant tax savings in the long run, especially for those who expect to be in a higher tax bracket in retirement. Additionally, Roth IRAs have no required … Read more