When a creditor forgives part of your debt, you might be surprised to learn that the forgiven amount is considered taxable income. This is known as debt cancellation income. The IRS views the canceled amount as a form of payment that you received, even though you didn’t actually get any cash. Therefore, you’re required to … Read more
In the United States, the amount of money a single person can make before paying taxes depends on their filing status and income level. The standard deduction for single filers in 2023 is $13,850, which means that any income below that amount is not subject to federal income tax. Additionally, single filers can claim additional … Read more
A PhD stipend is a form of financial aid provided to doctoral students to cover their living expenses while pursuing their studies. In many countries, including the United States, PhD stipends are considered tax-free income. This means that students do not have to pay income tax on the money they receive from their stipends. The … Read more
The answer to this question depends on the specific circumstances of the 17-year-old. In general, a 17-year-old can file taxes as an independent if they meet certain criteria. These criteria include being unmarried, not being a dependent of another taxpayer, and having earned income. Additionally, the 17-year-old must meet the income requirements for filing taxes … Read more
When you file your taxes, you need to report all of your income, even if it’s not taxable. This includes things like gifts, inheritances, and certain types of scholarships. The IRS wants to know about all of your income so that they can make sure you’re paying the correct amount of taxes. If you don’t … Read more
Wholesalers typically pay taxes based on the type of business structure they operate under and the jurisdiction in which they conduct business. Sole proprietorships and partnerships are generally responsible for paying individual income taxes on the profits generated by their wholesale operations. Corporations, on the other hand, are subject to corporate income taxes on their … Read more
In general, money gifted to you from another person is not considered taxable income. However, the source of the funds and the specific situation can determine whether or not taxes are owed. If the money is from a life insurance policy or retirement account, there may be taxes due depending on the beneficiary’s tax situation. … Read more
Newspapers, being essential for disseminating information and facilitating public discourse, often receive special tax considerations in many jurisdictions. Depending on the country or region, newspapers may be exempted from certain taxes, such as value-added tax (VAT) or sales tax, which are typically levied on goods and services. This tax exemption or concession aims to promote … Read more
Taxi can function as both a noun and an adjective. As a noun, it refers to a vehicle for hire that transports passengers for a fare. For example, “I took a taxi to the airport.” As an adjective, taxi describes something related to taxis or their service. For instance, “The taxi driver was friendly and … Read more
Filing taxes is a responsibility that most people have. However, there are some cases where you may not need to file. Generally, you don’t have to file if your income is below a certain threshold. This threshold varies depending on your filing status and age. For example, in 2023, the filing threshold for single filers … Read more