Tax-exempt status is a classification granted by the government to certain organizations that are deemed to be operating for charitable, religious, educational, or other public-benefit purposes. These organizations are exempt from paying taxes on their income, and in some cases, property taxes as well. The purpose of tax exemption is to encourage charitable giving and … Read more
In Georgia, property taxes are due twice a year, on February 1st and August 1st. If you fail to pay your property taxes by the due date, you will incur a penalty of 1.5% per month, or 18% per year. You will also be subject to a late payment fee of $25. If you have … Read more
Disgorgement payments, court-ordered remedies that require wrongdoers to give up ill-gotten gains, raise a tax question: are they deductible? Generally, legal fees and fines are not deductible. However, the IRS has ruled that disgorgement payments can be deductible if they are not considered a penalty. To qualify as a deduction, disgorgements must be related to … Read more
Filing a tax return involves gathering your income and expense information, such as wages, investments, and deductions. You can gather this information from pay stubs, bank statements, and other financial documents. Once you have gathered your information, you need to choose a method for filing your return. You can file online, by mail, or with … Read more
Every paycheck, various taxes are deducted. These taxes include federal income tax, which is calculated based on your income and filing status, and Social Security and Medicare taxes, which are deducted to fund retirement and healthcare programs. Additionally, many states and localities impose their own income taxes, which are also withheld from your paycheck. The … Read more
PCH (Publishers Clearing House) winnings are subject to taxation by the Internal Revenue Service (IRS). These winnings are considered income and must be reported on your tax return. The amount of taxes you owe will depend on your tax bracket and other factors. You may be required to pay federal, state, and local taxes on … Read more
Taxable income refers to the portion of an individual’s or business’s income subject to income tax. It’s calculated by subtracting certain deductions and exemptions from their gross income. Gross income encompasses all income received from various sources, such as salaries, wages, investments, and business profits. Taxable income determines the amount of taxes owed to the … Read more
The Federal Insurance Contributions Act (FICA) tax has been in place for over 85 years. It was first enacted in 1935 as part of the Social Security Act. FICA tax is a payroll tax that is used to fund Social Security and Medicare. The tax is split into two parts: the Old-Age, Survivors, and Disability … Read more
MassTaxConnect is an online portal designed to make it easier for taxpayers to file and manage their Massachusetts taxes. It allows taxpayers to access their tax accounts, view their tax history, make payments, and file returns online. The portal also provides access to a variety of resources, including forms, instructions, and FAQs. By using MassTaxConnect, … Read more
When you work and earn money, a certain amount of it is taken out before you receive your paycheck. This is called federal income tax withholding. The government sets rules about how much tax should be withheld based on factors like your income, the number of dependents you claim, and whether you itemize deductions on … Read more