The National Science Foundation Graduate Research Fellowship (NSF GRFP) is a prestigious award given to exceptional graduate students in STEM fields. As a form of financial assistance, the NSF GRFP provides a stipend and tuition support for three years. Since it is considered a fellowship, the NSF GRFP is generally not subject to federal income … Read more
A tax re-levy is a legal process by which a taxing authority, typically a government agency, takes steps to collect unpaid taxes after other collection efforts have failed. This process involves issuing a new notice and demand for payment, known as a tax levy, to the taxpayer, and seizing and selling the taxpayer’s property to … Read more
If you borrow money from a friend, it is generally not considered taxable income. This is because the money is not considered to be a gift, and you are not obligated to repay it. However, if you agree to pay interest on the loan, the interest payments may be taxable. Additionally, if you use the … Read more
Welfare is a government program that provides financial assistance to individuals and families in need. It is typically considered a form of social welfare, as it is intended to help people who are struggling to meet their basic needs. Welfare is not taxable income, which means that it is not subject to income tax. This … Read more
California has its own income tax laws that differ from federal tax laws. One of these differences is how Social Security benefits are taxed. On the federal income tax return, up to 85% of Social Security benefits may be subject to income tax. However, California has a more generous exclusion for Social Security benefits. In … Read more
FICA taxes are a combination of two federal taxes, the Federal Insurance Contributions Act (FICA) tax and the Medicare tax. FICA tax is used to fund Social Security benefits for retired, disabled, and survivor beneficiaries, while Medicare tax is used to fund Medicare benefits for elderly and disabled beneficiaries. Both of these taxes are withheld … Read more
When it comes to a property, a mortgage is a loan secured by the property itself, while a tax lien is a claim by the government on the property due to unpaid taxes. The priority of these claims depends on when they were filed. In general, a mortgage that was recorded before the tax lien … Read more
Prepaid tax is a type of prepayment that is made to a government agency, such as the Internal Revenue Service (IRS) in the United States, before the tax liability is due. It is often used by businesses to manage their cash flow and avoid late payment penalties. Prepaid tax is recorded as an asset on … Read more
Outplacement counseling, a service that aids employees in their job search after being laid off, typically falls under the umbrella of taxable income. This stems from the fact that such services are often provided by external vendors and paid for by the employer. As a result, the Internal Revenue Service (IRS) considers these payments as … Read more
When you receive RSUs, they are not taxed immediately. Instead, they are taxed when they vest, which typically means when you have worked for a certain period of time or when certain performance goals are met. When they vest, RSUs are taxed as ordinary income, which means that they are taxed at your marginal tax … Read more