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
Canadians can earn a certain amount of dividend income tax-free. This is known as the dividend tax credit. The dividend tax credit varies depending on the province or territory of residence, but generally allows for a portion of dividend income to be excluded from taxable income. The purpose of this credit is to reduce the … Read more
Tax treaties are agreements between two or more countries that seek to prevent double taxation of income and capital gains. Double taxation occurs when the same income is taxed in both countries. Tax treaties provide clarity and certainty to taxpayers, reduce compliance costs, and promote cross-border trade and investment. They also enhance cooperation between tax … Read more
Churches in the United States are generally exempt from paying income tax on their revenue. This exemption is granted by the Internal Revenue Service (IRS) under Section 501(c)(3) of the Internal Revenue Code, which applies to religious organizations and other nonprofit groups. The exemption is intended to support the charitable and religious activities of these … Read more
Understanding the impact of a 1099-G form on your taxes is important. This document reports unemployment compensation benefits received from the government. These benefits are generally taxable as income. When completing your tax return, include the 1099-G in your taxable income, which may also affect your eligibility for tax credits or deductions. It’s crucial to … Read more
Scrip dividends are payments made by corporations to their shareholders in the form of additional shares of stock instead of cash. In the US, scrip dividends are taxable. The shareholder’s cost basis in the newly received shares is the same as the fair market value of the shares on the date they were received. The … Read more
Progressive taxation is a system in which higher earners pay a greater percentage of their income in taxes compared to lower earners. This type of tax structure is often advocated for because it is considered to be fairer than a proportional tax system, in which everyone pays the same percentage of their income in taxes. … Read more
Luxury car tax is a type of tax imposed on the purchase of high-end vehicles with a value exceeding a certain threshold. The purpose of this tax is to reduce the affordability of luxury items and generate revenue for the government. However, there are several methods to potentially avoid paying luxury car tax. One approach … Read more
To check your rectification status, first, visit the New Tax Portal. Once there, log in to your account and click on the ‘Rectification’ tab in the top menu. Here, you’ll find a list of your rectification requests, including the current status of each one. You can also track the progress of your requests and ask … Read more
The timing of when you can receive a tax refund advance depends on several factors. Typically, you must file your tax return and have it accepted by the IRS before you can get an advance. The IRS usually starts accepting tax returns in late January or early February, but you can file yours earlier if … Read more