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 In December 2019, the Cadillac tax was finally repealed as part of the Further … Read more
Depending‍**Are Loan Fees Tax-Deductible?** When you get a loan, there are often fees associated with it, such as origination fees, appraisal fees, and title insurance fees. These fees can add up, so it’s important to know if you can deduct them on your taxes. The answer to whether loan fees are tax-deductible depends on the … Read more
All LLC members are considered self-employed and are responsible for paying self-employment taxes, which cover Social Security and Medicare. This tax is similar to the payroll taxes that employees have withheld from their paychecks, but LLC members must pay both the employee and employer portions. Self-employment taxes are calculated based on the net income of … Read more
Property tax reassessments typically occur for several reasons: * **Change in market value:** The most common trigger is a significant change in the estimated value of your property, usually due to factors like market trends, comparisons with recent sales of similar properties, and physical changes to your home or land. * **New construction or improvements:** … Read more
Filing joint taxes with an unmarried partner, such as a girlfriend, is typically not possible. Joint tax filing is generally reserved for married couples. However, there are exceptions, such as when you have a common-law marriage or meet certain legal requirements. To determine your eligibility, it’s best to consult with a tax professional or review … Read more
When it comes to inheritance tax, understanding how joint assets are treated is crucial. Joint assets, such as jointly owned property or bank accounts, can have implications for inheritance tax purposes. Generally, joint assets are not subject to inheritance tax if they are owned jointly by spouses or civil partners. This is because the assets … Read more
Whether an inherited Roth IRA is taxable to the beneficiary depends on the beneficiary’s relationship to the original account holder and the distribution rules. If the beneficiary is a spouse, they can generally roll over the account into their own Roth IRA without paying taxes. However, if the beneficiary is a non-spouse, they will have … Read more