Tax deductions for work-related expenses can be confusing, but clarifying whether you can claim suits on your tax return is crucial. Generally, if you’re required to wear a suit for your job, you can deduct the cost of purchasing, cleaning, and maintaining those suits. However, if you wear suits for both work and personal reasons, … Read more
Medical Expense Tax Credit (METC) The Medical Expense Tax Credit (METC) is a non-refundable tax credit that helps reduce the cost of eligible medical expenses for individuals and their family members. To claim the METC, you must have eligible medical expenses that exceed 3% of your net income. Eligible expenses include fees for medical practitioners, … Read more
In Canada, only one province enjoys the absence of provincial sales tax (PST): Alberta. Unlike other provinces that levy varying rates of PST on goods and services, Alberta stands out with its competitive tax structure. This lack of PST makes Alberta an attractive destination for businesses and residents alike, fostering economic growth and affordability. The … Read more
Payroll tax deferral allows employees to temporarily stop paying a portion of their Social Security taxes, which are typically 6.2% of their earnings. This means that more of their paycheck is available to spend or save. However, the taxes that are deferred must be repaid eventually, either through increased withholding from future paychecks or when … Read more
Cascading effects of taxation refer to the chain of consequences that arise from the imposition of a tax at one stage of production or consumption, which can reverberate through the entire economic system. Taxes can lead to higher prices for goods and services, as businesses pass on the added cost of the tax to consumers. … Read more
Federal taxes are the financial contributions required by the U.S. government from individuals and businesses. These taxes help fund essential government programs and services, such as infrastructure, education, and national defense. There are different types of federal taxes, including income tax, payroll tax, and excise tax. Income tax is levied on the earnings of individuals … Read more
When you inherit property, whether it’s a house, land, or other real estate, you don’t automatically have to pay taxes on it. However, there are certain situations where you may be liable for taxes, such as if you sell the property or make a profit from it. Inherited property is generally not subject to income … Read more
TurboTax Deluxe is a popular tax software that offers a range of features to help you file your taxes. It includes tools to import your W-2 and other tax documents, calculate deductions and credits, and e-file your return. However, it’s important to consider whether the additional features in Deluxe are worth the extra cost compared … Read more
Corporate taxes are levied on the profits of businesses, and when these taxes are increased, companies have less money available to reinvest or distribute to shareholders. In order to maintain their profit margins, businesses may choose to raise prices on their goods or services. This can lead to inflation, as consumers pay more for the … Read more
The incidence of tax refers to the ultimate burden of a tax, which may not be borne by the person or entity legally obligated to pay it. When a tax is imposed on a business, the business may pass on the cost to consumers in the form of higher prices. Alternatively, the business may reduce … Read more