Exemptions on taxes refer to certain income or assets that are not subject to taxation. They are typically established to provide relief to特定 groups of taxpayers or to encourage specific behaviors. For example, contributions to retirement accounts, such as 401(k)s and IRAs, are often exempt from current income taxes to promote saving for the future. … Read more
Nonconcessional contributions are extra payments you make into your superannuation fund that exceed the concessional contributions cap. They are taxed in a different way to concessional, so you cannot claim a tax deduction for them. However, you can choose to pay tax on your nonconcessional contributions at a rate of 15% (plus the Medicare levy), … Read more
Sales tax is a tax levied on the sale of goods and services. The rules for which sales are taxable vary from state to state. Generally, sales of tangible personal property are subject to sales tax. This includes items such as clothing, appliances, furniture, and cars. Some states also tax the sale of certain services, … Read more
Due to the Payroll Tax Holiday, you may notice a slight change in the amount of taxes withheld from your paycheck starting September 1st and ending December 31st. This means that you may have a bit more money in your pocket each time you get paid. However, it’s important to remember that this is a … Read more
Unrealized profit refers to the increase in value of an investment or asset that has not yet been sold. It is considered a paper profit until it is realized through the sale of the asset. In many jurisdictions, unrealized profit is not subject to taxation. This is because it is not considered to be income … Read more
The government scheme known as Tax-Free Childcare helps working parents pay for their childcare costs. You may be eligible for this program if you are employed or self-employed and have children under the age of 12, or under 17 if they have a disability, respectively. In order to be eligible, you must earn less than … Read more
It can be convenient to have paper copies of tax returns for quick reference or as a backup, but it’s not a legal requirement. The IRS accepts electronic filing and storage of returns, and electronic copies are considered equally valid as paper copies. However, if you prefer to keep paper copies for peace of mind … Read more
Gifts and bequests are not typically taxable for the recipient, though there are exceptions. Inheritance tax, also known as estate tax, is levied on the estate of the deceased, not the individual inheriting. Gift tax is imposed on the donor, not the recipient, and only if the value of the gift exceeds a certain threshold. … Read more
A divorce decree, a court order that finalizes the legal separation of a married couple, does not override tax laws. Tax laws are established by governments to determine the financial obligations of individuals and entities, and they apply regardless of a person’s marital status. Therefore, even after a couple divorces, each spouse is still responsible … Read more
US Virgin Islands (USVI) residents pay a different set of taxes compared to United States mainland residents. They are exempt from federal income taxes, but they do pay a local income tax, excise taxes, and property taxes. The local income tax rate varies depending on the island of residence, and excise taxes are levied on … Read more