When operating as a sole proprietor, determining whether PPP (Paycheck Protection Program) loan proceeds are included in taxable income can be confusing. The taxability of PPP funds differs from traditional business income. Initially, PPP proceeds were considered tax-free. However, subsequent legislation made expenses paid with PPP funds non-deductible. This means that although the loan proceeds … Read more
Tbd or To Be Determined is a term commonly used in taxation to indicate that a specific value or information is not yet known or has not been finalized. It’s a placeholder used when preparing tax returns or documents, indicating that the exact amount or detail will be provided or known at a later date. … Read more
If you suspect someone is avoiding paying their taxes, you can report them to HMRC anonymously. You can do this by calling the HMRC Fraud Hotline on 0800 788 887 or by completing an online form. When you report someone anonymously, HMRC will investigate the matter and take appropriate action. This may include launching an … Read more
Taxidermy, the act of preserving and preparing animal skins and bodies for display, has a verb associated with it: to taxidermize. This verb encapsulates the process of transforming a deceased animal into a realistic and lifelike specimen. It involves various techniques such as skinning, flesh removal, and meticulous reconstruction using materials like cotton and wire. … Read more
When you cash in an endowment policy, you may need to pay tax on the gains. The tax you owe will depend on the type of policy you have and how long you’ve held it. If you’ve held the policy for more than two years, you may be eligible for a tax-free lump sum. However, … Read more
Taxes are essential for a functioning society. They provide crucial funds that support public services, such as infrastructure, healthcare, and education. Without tax revenue, governments would have limited resources to address the needs of their citizens. Additionally, taxes can help redistribute wealth and promote social equity by requiring those who can afford to contribute more … Read more
A tax is a mandatory financial charge imposed by a government or other governing body on individuals or entities to raise revenue for public purposes. It is typically levied on income, property, goods and services, and various other activities. Tax payments are collected and used by governments to fund essential services and programs such as … Read more
The Additional Medicare Tax (AMT) is an extra tax applied to high-income earners. It is meant to fund Medicare Part A, which covers hospital insurance. Some employers may choose to match the AMT paid by their employees. This means that they will contribute an equal amount of money to Medicare Part A on the employee’s … Read more
The cigarette tax is a sin tax because it targets activities that are considered harmful or immoral, such as smoking. Sin taxes are designed to discourage people from engaging in these activities and to generate revenue for the government. By making cigarettes more expensive, the tax encourages smokers to reconsider their habit or quit altogether, … Read more
If you receive disability income, you may wonder whether you need to file taxes on it. The general rule is that if the disability income is taxable under regular income tax rules, then it is also taxable for federal income tax purposes. This means that if the disability income is from a private disability insurance … Read more