Determining an individual’s Tax Identification Number (TIN), also known as a Social Security Number (SSN) for U.S. citizens and residents, can be a complex task. While there are legal methods to obtain this information in certain situations, it is generally not readily accessible to the public. Circumstances that allow for the release of TINs include … Read more
Home improvements can sometimes be eligible for tax deductions, providing you with potential savings. However, not all improvements qualify. Generally, to be tax deductible, the improvement must add to the value of your home, extend its life, or make it more energy-efficient. Examples of deductible improvements include adding a new energy-efficient roof, installing new windows, … Read more
The Tax Cuts and Jobs Act of 2017 (TCJA) modified Section 85 of the Internal Revenue Code (IRC), which addresses unemployment compensation. Prior to the TCJA, unemployment compensation was excluded from federal income taxation. However, the TCJA eliminated this exclusion for tax years beginning after December 31, 2017. This change has significant implications for individuals … Read more
Typically, individuals begin paying taxes once they earn income. In most cases, this occurs when they start working. However, the age at which someone is required to file taxes can vary depending on their circumstances. For instance, in the United States, children under the age of 18 who earned more than a certain amount during … Read more
Homestead exemption is a tax break that reduces the amount of property taxes you owe on your primary residence. The amount of savings varies depending on your state and local laws, but it can be significant. For example, in Texas, homeowners can save up to $25,000 on their property taxes. To qualify for the homestead … Read more
Liberalised Family Pension is a scheme that provides financial support to the families of deceased government employees. It is taxable under the Income Tax Act. When the employee dies, the family receives a lump sum payment and a monthly pension. The lump sum payment is not taxable, but the monthly pension is. The monthly pension … Read more
When you receive a 1099r form, which reports distributions from retirement accounts like 401(k)s or IRAs, it’s important to understand how it affects your taxes. The amount you withdraw from these accounts is generally subject to income tax, but there are certain exceptions. If you meet specific requirements, such as being over 59½ years old … Read more
“Shipping and handling” refers to the costs associated with preparing, packing, and delivering a product to the customer. These costs can include packaging materials, postage, and labor. In general, shipping and handling charges are not taxable if they are separately stated on the invoice. However, if the shipping and handling charges are included in the … Read more
Selling inherited property typically triggers capital gains tax, but there are strategies to minimize or avoid it. One option is the step-up in basis rule, which allows you to adjust the property’s value to its market value at the date of inheritance. This lowers your taxable gain. Secondly, consider holding the property for over a … Read more
Digital purchases, such as online downloads, streaming services, or virtual goods, are subject to sales tax in many jurisdictions. This is because these purchases are considered “tangible personal property” or “services” that are taxable under general sales tax laws. The tax rate applied to digital purchases typically matches the sales tax rate for other goods … Read more