After an income tax assessment, a revised return can be filed under certain conditions. If additional income was earned that was not included in the original return, a revised form should be submitted to correct the discrepancy. Similarly, if excessive deductions or exemptions were claimed, filing a revised return allows for adjustments. Additionally, if new … Read more
Time spent volunteering cannot be deducted from your taxes. However, you may be able to deduct expenses incurred while volunteering, such as transportation, meals, and uniforms, if you itemize your deductions and meet certain requirements. To qualify, the expenses must be directly related to the volunteer service and must benefit a qualified organization. Additionally, the … Read more
Religious institutions generally receive tax-exempt status because they’re considered charitable organizations dedicated to promoting spiritual well-being, providing social services, and fostering community involvement. They utilize their funds for religious activities, education, outreach programs, and supporting the underprivileged, which aligns with society’s goal of providing for the common good. Taxing religious institutions could hinder their ability … Read more
Taxidermy is the art of preserving and mounting the skin of an animal (or parts thereof) on a form that resembles the animal in life. The word “taxidermy” is derived from the Greek words “taxis,” meaning “arrangement,” and “derma,” meaning “skin.” Taxidermists use a variety of techniques to preserve and mount animal skins, including skinning, … Read more
Imputed income is a type of income that is not directly received by a taxpayer but is still considered taxable. It is usually associated with the use of assets or the receipt of benefits that have an economic value. For example, if an individual owns a home and lives in it, they may be required … Read more
Local municipalities are often exempt from paying taxes because they are considered governmental entities. This means that they provide essential services to their communities, such as public safety, education, and infrastructure maintenance. Taxing these entities would reduce the funds available for these important services, ultimately harming the community. Additionally, local municipalities often use tax revenues … Read more
Education expenses can potentially reduce your taxable income, resulting in lower taxes. To claim these expenses, you’ll need to itemize your deductions on Schedule A of your tax return. Qualifying expenses include tuition, fees, books, and supplies required for enrollment or attendance at an eligible educational institution. However, there are income limits for claiming the … Read more
When you cash in your Series EE or Series I savings bonds, you may have to pay federal income tax on the interest you’ve earned. The amount of tax you owe depends on how long you’ve held the bonds and your tax bracket. If you cash in the bonds after holding them for less than … Read more
Typically, Her Majesty’s Revenue and Customs (HMRC) communicates with individuals via mail or their online account regarding tax matters. While it’s possible to receive a text message from HMRC in certain circumstances, such as to confirm an appointment or a reminder about an outstanding tax return, HMRC generally does not initiate contact via text message … Read more
Unrealized gains, also known as paper profits, refer to the increase in the value of an investment that you haven’t yet sold. These gains are not subject to taxation until you sell the investment and realize the profit. This is because the gains are not considered income until they are actually realized. Once you sell … Read more