Retention bonuses are typically considered taxable income and are subject to both federal and state income taxes. The amount of tax owed on a retention bonus will depend on the individual’s tax bracket and other sources of income. In general, a higher tax bracket will result in a higher tax liability on the bonus. To … Read more
For corporations in the United States, corporate taxes are due on the 15th day of the fourth month after the end of the fiscal year. This means that if the fiscal year ends on December 31st, the corporate tax return is due on April 15th. However, if the 15th falls on a weekend or holiday, … Read more
Working Tax Credit (WTC) and Universal Credit (UC) are two different benefits systems in the United Kingdom. WTC is a tax credit that helps people who are in work and on a low income. UC is a single benefit that replaced six other benefits, including WTC. UC is designed to simplify the benefits system and … Read more
Nannies can earn income without paying taxes by working “under the table.” This means that they do not report their earnings to the government and do not pay income taxes or Social Security taxes. However, nannies who work under the table are not eligible for any government benefits, such as unemployment insurance or workers’ compensation. … Read more
Demurrage, a charge imposed on ships for remaining in port beyond the agreed-upon time, is generally not subject to withholding tax. This is because demurrage is considered a penalty for delay rather than a payment for services rendered. As such, it is not typically classified as income subject to taxation. However, it’s important to note … Read more
When an organization raises funds through ticket sales for an event, the tax deductibility of those tickets depends on a few factors. Is the event primarily held for fundraising, or is there an entertainment aspect? If the primary purpose is fundraising, then the tickets may be considered charitable contributions and may be tax-deductible. However, if … Read more
Certain home improvements qualify for tax deductions, reducing your taxable income. Renovations that enhance accessibility for disabled individuals, such as ramps or widened doorways, may be eligible. Energy-efficient upgrades, including insulation, windows, and solar panels, can also qualify. If you use your home for business purposes, a portion of improvements related to that space may … Read more
Capitalization in taxation involves recognizing and distinguishing between expenses that can be claimed immediately and those that must be spread over future periods. When an expense is capitalized, it is recorded as an asset in a company’s financial statements and its cost is allocated over multiple accounting periods, matching the expense to the revenue it … Read more
Individuals living abroad may be eligible for tax deductions on their overseas income. The foreign income exclusion allows U.S. citizens and resident aliens to exclude a certain amount of their foreign-earned income from federal income taxes. In 2023, the exclusion amount is $124,000 for individuals who meet the requirements. To qualify, individuals must have a … Read more
If you are a small business owner, you may be able to deduct your utility bills on your taxes. This includes expenses such as electricity, gas, water, and trash removal. To qualify for the deduction, the utility must be used in your business. For example, if you have a home office, you can deduct the … Read more