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
Doordash delivery drivers in the United States are considered self-employed contractors. As such, they’re responsible for paying their own taxes, which include federal income tax, self-employment tax (which covers Medicare and Social Security), and state and local taxes. The amount of taxes taken out of a Doordash driver’s earnings will depend on a number of … Read more
A taxi meter is a device that calculates the fare for a taxi ride based on the distance traveled and the time spent. Meters are typically installed in the front seat of a taxi and display the fare as a numerical value. Taxi meters use a variety of sensors to determine the distance traveled and … Read more
The Third Estate in pre-revolutionary France consisted of commoners who bore the brunt of taxation while privileged classes like the clergy and nobility enjoyed exemptions. This unjust system fueled resentment and contributed to the outbreak of the French Revolution in 1789. The Third Estate demanded equal representation and taxation, ultimately leading to the abolition of … Read more
Disability income, whether from Social Security Disability Insurance (SSDI) or from a private insurance policy, is treated differently for tax purposes. SSDI benefits are typically not taxable, meaning you generally don’t have to report them on your tax return. However, if you have other income in addition to SSDI, such as wages from a part-time … Read more