If you or someone you know has had to deal with being a beneficiary of a life insurance policy, then you have probably heard the question "Is life insurance taxable?" You may have even asked yourself "Is life insurance taxable?"
Unfortunately, the answer to that question is slightly complicated. Before diving into the answer to the question "Is life insurance taxable?", it is important to first look at how taxes work in the first place.
Read MoreJust like many things, income tax rates vary by state. The two main types of income tax rates are flat tax rate and a progressive tax rate. We will divide our lists up into these two main categories, so that you know where your state stands.
Read MoreThe Social Security tax is paid by both employees and employers to help fund the Social Security program. It’s collected in two different forms. The Federal Insurance Contributions Act mandates the payroll tax. The Self Employed Contributions Act mandates the self-employment tax. The tax pays for the disability, survivorship, and retirement benefits of millions of Americans every year.
Keep reading to find out more about this tax, whether you should be paying it and how it is beneficial to you.
Read MoreThe estate tax rate can be one of the highest tax rates. It starts at 37% and can get as high as 47%. This means it’s important to carefully plan if you want to avoid the government getting the bulk of your hard-earned assets.
Read MoreEvery year, millions of Americans get tax refunds when there are taxes due and they file their tax returns. Many people are expecting this money and want to know when it should come. The IRS will issue about 9 out of 10 refunds in less than 21 days. However, there are many different things that can delay your tax return and cause it to take even longer and need additional time.
Read MoreA tax bracket means the range of incomes subject to a certain income tax rate when you file your tax return. Tax brackets happen in a progressive tax system, in which taxation increases as your income grows larger. Low incomes fall into a tax bracket with relatively low-income tax rates. Higher incomes fall into brackets that have higher tax rates.
Read MoreYou might wonder how the IRS could find out about your gift. It's a common question to ask how does the IRS know if you give a gift. It's always possible that the IRS will find out about a gift you did not report properly. If this happens, you could be subject to penalties and interest. Having a good tax tracker that helps you meet tax requirements is a good idea. It's also a good idea to research tax requirements for gifts before you give one
Read MoreMany benefits come along with being a homeowner. One of them is that mortgage rates are usually lower than that of rental payments. Another benefit of being a homeowner is that you have the flexibility to use your home as an investment to earn an income stream. Perhaps the most fruitful benefit of being a homeowner is that it gives you access to a wide variety of tax breaks.
Read MoreIn accounting terms, your taxable income refers to the income amount used to calculate your income tax in a single year, also called the adjusted gross income (AGI). The AGI refers to the individual’s total income minus allowed exemptions and deductions.
Read MoreIt is that time of year again and you have learned to dread it...tax time. We have a gnawing feeling in the pit of our stomachs about how much money we are going to owe. Even worse, we question how are we going to pay for it.
No matter how many experts we enlist, the damage is usually done by the time we try to change the amount we owe. You are debating paying your taxes by credit card and wondering if that is even a good idea. Keep reading to find out what options are available to you.
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