Capital gains are profits made from investments that are sold for more than their original purchase price. In general, you will need to pay income tax on capital gains, but there are some exceptions. For example, you may not have to pay taxes on capital gains if the asset was held for more than a … Read more
Determining whether spousal support is taxable depends on whether the payments are considered alimony or property settlement. Alimony, intended to support a former spouse, is generally taxable for the recipient and deductible for the payer. Property settlement, dividing jointly-owned property, is not taxable but may affect the capital gains if the recipient later sells the … Read more
Taxation can influence inflation through various mechanisms. Consumption taxes, such as sales tax, directly increase the prices of goods and services, leading to a rise in inflation. Income taxes reduce disposable income, potentially curbing consumer demand and mitigating inflationary pressures. Corporate taxes can impact businesses’ profitability, affecting investment decisions that may influence inflation. Additionally, taxation … Read more
Whether board member payments are taxable depends on the nature of the payments and the recipient’s status. Generally, director fees and other compensation for services as a board member are considered taxable income and are subject to regular income tax rules. The payments are reported on the recipient’s individual tax return. However, if the board … Read more
If you’re wondering why federal taxes aren’t being deducted from your paycheck, it could be for a few reasons. Maybe you submitted a Form W-4 to your employer that resulted in an incorrect withholding amount. Or, you might have claimed certain deductions or credits that reduced your taxable income to zero. Whatever the cause, it’s … Read more
If you haven’t worked and earned money, you may still need to file taxes. Certain types of income, such as unemployment benefits, Social Security payments, or investment earnings, are taxable and require you to file a tax return. Additionally, you may be eligible for tax credits or deductions that could reduce the amount of taxes … Read more
Florida is one of the few states in the United States that does not impose a property tax on vehicles. This means that Florida residents do not have to pay an annual property tax bill for their cars, trucks, or other vehicles. Instead, Florida relies on other sources of revenue, such as sales tax and … Read more
The Unemployment Tax Break, part of the CARES Act, temporarily waives federal income taxes on unemployment benefits received in 2020. To calculate the amount you’ll get back, determine your filing status, income, and the amount of unemployment benefits you received. If you earned less than $150,000 as a single filer or $300,000 as a married … Read more
Typically, bonuses and commissions are taxed similarly. Both are considered forms of taxable income, subject to income tax based on your tax bracket. The tax rate you pay will depend on your total income level. In some cases, bonuses may be taxed at a slightly higher rate if they are considered supplemental income. However, the … Read more
An S corporation files a special type of tax return called Form 1120S, U.S. Income Tax Return for an S Corporation. This form is used to report the corporation’s income, deductions, and other financial information to the Internal Revenue Service (IRS). The Form 1120S is similar to the Form 1040, which is used by individuals … Read more