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When filing your taxes, pay close attention to your exemption amount. Each year, you can exclude some of your income from your taxable income depending on how many exemptions you have. Main exemptions are for the taxpayer, spouse, any dependents, and for being blind or 65 or older. You also can claim an exemption for a child or relative who qualifies as a dependent according to criteria set forth by the Internal Revenue Service.
The Internal Revenue Service taxes every source of income that it can. For those whose lucky day included winning the Lotto or winning card games in Vegas or Atlantic City, their winnings are taxed at 25 percent before they even receive their winnings. The natural result of many attempts to get these winnings is a good number of losses. The good news is that the amount of your winnings can be reduced by the amounts of your losses. The bad news is that if you lost more than you won, the rest of the losses are not deductible.
If you're planning to import a vehicle into Pakistan, familiarize yourself with the full regulations and rulings of the Pakistan Board of Revenue. Specific rules and duties may depend upon your nationality, the characteristics of the car and your reason for importation. All cars fall into two categories, on which Pakistan's duty system is based: special regime vehicles and normal regime vehicles. Determine which regime your vehicle falls under to calculate its corresponding duties.
It is great to win a big prize in the lottery or hit a big trifecta at the racetrack, but the IRS requires that all gambling winnings be reported and treated as regular income. Furthermore, any gambling winnings 300 times or more the original wager and/or greater than $5000 must have 25% withheld for income taxes. This means the IRS takes out most of the taxes that are due on the winnings in advance, so you owe little to nothing at tax time.
Taxpayers can reduce tax liability through income tax exemptions. The main tax exemptions are for yourself, your spouse and for any dependents. The Internal Revenue Service sets an income threshold and a multiplier for the exemptions. In 2009, the lowest income exemption threshold was $125,100. The exemption amount was $3,650. These numbers can change each year. In addition, Congress will often enact legislation to provide additional exemptions for taxpayers in need. In 2009, Congress allowed different exemption amounts for Midwesterners who were displaced.
Many of us will never hit it big at the casino, but a lucky few bring home up to thousands of dollars in winnings every year. Some gamblers can even turn their skills at the slots into a full-time job. Even if you never hit the jackpot, the IRS still wants to know about your casino winnings if they total more than a few hundred dollars for the year. Failing to claim your casino winnings on your federal income tax return can result in fines, interest and other penalties.
Employers are required to withhold federal payroll taxes from workers' income and pay them to the Internal Revenue Service. The federal government dictates the withholding requirements for each federal payroll tax. The latter includes federal income tax and Medicare and Social Security (FICA) taxes. Federal withholding occurs according to the employee's pay cycle; employers that pay wages weekly must withhold the taxes accordingly.
Social Security (SS) tax is also called Old Age, Survivors and Disability Insurance. The Federal Insurance Contributions Act (FICA) authorizes SS and Medicare taxes. Employees are required to pay this tax, and employers must pay a matching portion as well. As the employer, you are required to withhold SS tax from your employees' paychecks. This process is called payroll deduction or payroll withholding.
Calculating how much you owe to the Internal Revenue Service might seem like black magic, but it's surprisingly simple and well laid out by the IRS. Calculating federal taxes is made simpler with Internet and computer-based tax filing programs, but you may want a deeper understanding of the calculation and tax filing process.
Raffle tax is the federal income tax required as the result of winning a cash or other prizes through a raffle or other similar contest. A raffle typically is any contest that requires the participant to purchase a ticket or document claiming their eligibility to participate. The raffle tax applies to any prize valued at $600 or more.
The Federal Tax Deduction is more commonly referred to as the standard deduction. Each year when filing taxes, the government allows people to deduct a certain amount from their taxes. To take the standard deduction, the taxpayer cannot itemize deductions. The standard deduction changes each year, but the method to determine the deduction usually remains the same. The Internal Revenue Service bases the standard deduction on the taxpayer's filing status.
California laws about disposable income allow the courts to take up to 50 percent of earned income for child support. The state's child support courts can require non-custodial parents to pay half of their disposable income to support their children. You can do the calculations for disposable earnings for child support in California to see how your earning will be affected.
Taxpayers living in Georgia, like any state in the union, are required to pay taxes to the federal government. The federal tax withholding rate is the same for Georgia taxpayers as it is for taxpayers in any other state. To make it easier to calculate your total federal tax withholding, the Internal Revenue Service has provided a convenient and easy to use Withholding Calculator.
The Internal Revenue Service (IRS) requires you to pay federal income tax on all your income in a given year. Generally, most people complete their income tax return based on their income from a W-2. However, if you receive a 1099 to document your income, you may be responsible for paying federal income tax and self-employment tax. If you are an independent contractor, you may receive several 1099s, and if you earned interest from a bank account, your bank will also send you a 1099 to document that income.
Income taxes in Canada are fairly straightforward. The system is administered by the Canada Revenue Agency (CRA) except in Quebec, whose system is administered by Revenue Québec. The system is driven by individual taxpayer self-assessment which is conducted by filing a return with the CRA. The CRA will then compare the self-assessment with the information collected from employers and financial companies to verify information. The rate each person must pay is based on his income for the current year.
Federal excise taxes are charged on certain goods and services at the point of sale in the United States. Examples of goods include gasoline and tobacco products. Services subject to the federal excise tax include land-line and cellular telephone service. Excise taxes are typically calculated in one of two ways, depending on the goods: either as a per unit tax, or as a multiple of X dollars per X amount of value. This is called an ad valorem tax because it is based on a percentage of the value of the item.
