The Child Tax Credit (CTC) is a tax credit that helps families with the cost of raising children. In July 2021, the CTC was expanded and made fully refundable, meaning that families who don’t owe any taxes can still receive the full amount of the credit. The CTC is paid in monthly installments from July … Read more
An individual is a natural person who is not a company or other legal entity. Individuals are subject to income tax on their worldwide income, regardless of where they reside. The amount of tax they owe is calculated based on their taxable income, which is their total income minus certain deductions and exemptions. Individuals can … Read more
The time it takes to receive your tax refund after the Internal Revenue Service (IRS) accepts it varies. Generally, most refunds are issued within 21 days of the IRS accepting your return. However, there are several factors that can affect the processing time, including the method you used to file, the complexity of your return, … Read more
Bonuses are considered income and, like all income, are subject to federal income tax. The amount of tax withheld from a bonus depends on factors such as the employee’s tax bracket, withholding allowances, and state tax laws. In some cases, bonuses may be taxed at a higher rate, particularly if they are considered a performance-based … Read more
Interest paid on underpayment of state taxes may be deductible on your federal income tax return. However, the deduction is limited to the amount of interest paid on taxes from a tax return that you filed before the due date, including extensions. Additionally, interest paid on late payments of estimated taxes and interest related to … Read more
In Australia, providing gifts to clients can potentially qualify as a tax deduction under certain conditions. Business expenses, including client gifts, are generally deductible if they are directly related to generating assessable income. The gift should be considered as a marketing expense intended to promote and maintain the business relationship. However, it’s important to note … Read more
Idaho offers great tax benefits for individuals, especially for those considering retiring. The state is known for its low income tax rates, with no state income tax on Social Security benefits and withdrawals from retirement accounts like 401(k) and IRAs. Idaho also doesn’t impose a sales tax on groceries, and the overall sales tax rate … Read more
Understanding how taxes affect your retirement income is crucial. When you receive your retirement check, it’s important to know that taxes may be deducted. These deductions vary depending on factors like your income, tax bracket, and the type of retirement account you have. It’s wise to factor in these deductions when planning your retirement budget. … Read more
When you sell products to other businesses at wholesale prices, you may wonder if you need to pay sales tax on those transactions. The answer depends on a few factors, including the state where you operate your business and whether you have a resale certificate. If you charge sales tax on wholesale sales and you … Read more
When deciding whether to claim one allowance or zero on your tax return, there are several factors to consider. If you expect to receive a large refund, claiming zero allowances may result in higher paycheck withholdings throughout the year, leading to a lump sum refund at tax time. Conversely, claiming one allowance can reduce your … Read more