Advance payments, sometimes known as prepayments, received in connection with a service or product to be delivered at a future date can be considered taxable income in the year they are received. Tax authorities generally regard advance payments as a portion of the total income earned for the service or product, even though the delivery … Read more
Students may be eligible to deduct the cost of a laptop on their taxes if it is required for their education and not used for personal use. To qualify, the laptop must be used primarily for educational purposes, such as taking notes, writing papers, and accessing course materials. The laptop must also be purchased during … Read more
The frequency of audits for amended tax returns varies depending on the specific circumstances of the return. Generally, amended returns that involve significant changes to income or deductions are more likely to be audited. The Internal Revenue Service (IRS) has a Compliance Factor (CF) system that assigns a risk score to each return based on … Read more
The Jizya tax, a levy imposed on non-Muslims living in an Islamic state, was implemented by Caliph Umar ibn al-Khattab, the second Rashidun caliph, after the Battle of Yarmuk in 636 CE. This tax was intended to provide financial support for the Muslim state and its armies and was seen as a way to differentiate … Read more
In today’s digital age, paying with a physical card or a mobile payment app has become the norm in many industries, including the taxi industry. The convenience of cashless transactions has made it easier for customers to pay for their taxi fares without the hassle of carrying or exchanging cash. Many taxi companies now offer … Read more
When you exchange goods or services without using money, it’s called bartering. The IRS considers bartering a taxable event, meaning you may owe taxes on the fair market value of what you received. Just like with money, you should report the value of the goods or services you receive through bartering on your tax return. … Read more
As a freelancer, you’re responsible for paying your own taxes, including income tax, self-employment tax, and potentially other taxes depending on your location and business structure. The amount of income you need to earn before you’re required to file taxes varies depending on your circumstances. Generally, if you earn more than $400 in net income … Read more
Taxation is a leakage that reduces the amount of money available in an economy. When money is taxed, it is taken out of circulation, which reduces the amount of money that can be used for investment and consumption. This can have a negative impact on economic growth. In order to minimize the negative effects of … Read more
Pregnancy expenses can be a significant financial burden, but some of these expenses may be tax deductible. Medical expenses that exceed 7.5% of your adjusted gross income can be deducted on Schedule A of your tax return. This includes expenses for prenatal care, labor and delivery, and postnatal care. However, expenses for items that are … Read more
The Cadillac tax, a 40% excise tax on high-cost employer-sponsored health insurance plans, was included in the Affordable Care Act of 2010. However, the tax was widely criticized for its potential to harm businesses and consumers, and it was repeatedly delayed. In December 2019, the Cadillac tax was finally repealed as part of the Further … Read more