Taxes

A:

The formula for calculating income tax is the product of the total amount of taxable income multiplied by the tax rate, according to the Internal Revenue Service. The formula to account for multiple marginal tax rates requires multiplying the total amount of money earned in each successive bracket by the tax rate and adding the values together.

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  • What can I write off on my taxes as an independent contractor?

    Q: What can I write off on my taxes as an independent contractor?

    A: TurboTax reports that independent contractors can deduct half of the self-employment tax, health insurance premiums, office expenses, retirement plan contributions and business travel expenses. Independent contractors can also deduct the mileage accumulated on a personal vehicle when driving for business-related purposes. About.com notes that business equipment, employee benefits and wages, advertising costs, professional dues, professional services and repair costs can also be tax deductions for independent contractors.
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  • How many years can you file back taxes?

    Q: How many years can you file back taxes?

    A: Back taxes can be filed for up to 10 years after the tax year in which the resident neglected to file income taxes, according to ETaxes.com. After 10 years, the statute of limitations runs out for the Internal Revenue Service to collect back taxes in most states. In a few states, the statute of limitations never runs out, meaning back taxes can be filed at any point in the resident's life.
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  • Which states have no sales tax?

    Q: Which states have no sales tax?

    A: As of 2014, there are four U.S. states that do not impose a sales tax on consumers: Delaware, Montana, New Hampshire and Oregon. While Alaska does not impose a state sales tax, city governments do have the right to impose some sales tax there, meaning the average Alaskan retail shopper pays about 1.69 percent in sales tax.
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  • What is the "cow flatulence tax"?

    Q: What is the "cow flatulence tax"?

    A: In the United States, a cow flatulence tax does not exist, but some European nations have imposed taxes on cow owners. The main argument for a cow flatulence tax is that cows release methane, one of the greenhouse gases that causes climate change.
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  • What are the characteristics of a good tax system?

    Q: What are the characteristics of a good tax system?

    A: The strongest tax systems create fairness, assure adequacy, simplicity, transparency and promote administrative ease according to the Oklahoma Policy Institute. Ultimately, strong and healthy tax systems create healthy and vibrant economies, and may even promote peace and create strong and stable governments.
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  • Do you pay taxes on life insurance payouts?

    Q: Do you pay taxes on life insurance payouts?

    A: Life insurance that pays out on the death of an insured person is not taxable unless the policy was turned over to the recipient for a price, according IRS Publication 525. Any amount received in excess of the value of the insurance is interest and is taxable.
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  • Which U.S. state has a belt buckle tax?

    Q: Which U.S. state has a belt buckle tax?

    A: Texas has a seemingly arbitrary law on the books that charges sales tax for some clothing items, such as belt buckles, but not for others, such as the belts themselves. This tax system applies to other things, such as rain boots, which are taxable, but not cowboy boots, which are exempt.
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  • Are dental implants tax deductible?

    Q: Are dental implants tax deductible?

    A: The Internal Revenue Service states that the amount paid for dental implants can be reported as a medical expense on Schedule A, Itemized Deductions. Not all taxpayers benefit from these expenses, as medical expenses have to exceed a percentage of income before they become deductible.
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  • How can you tell if the IRS received your tax return?

    Q: How can you tell if the IRS received your tax return?

    A: One simple way to see if the IRS has received your tax return, especially if you are anticipating a refund, is to use the IRS's special "Where's My Refund" tool. The IRS updates refund statuses every 24 hours.
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  • What is the "jock tax"?

    Q: What is the "jock tax"?

    A: The "jock tax" refers to a type of income tax that is imposed by states or cities on athletes that make money while playing inside of a specific state or city. While the tax can also be applied to other businesses, it has been often used to charge visiting athletes since it is easier to track when and where they made their money.
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  • What is a luxury tax?

    Q: What is a luxury tax?

    A: A luxury tax is essentially a tax placed on any goods or services the United States government as well as many state governments deem as non-essential. Such a tax is aimed at only those who are wealthy enough to afford luxury items. Despite the fact that many items formerly considered luxury goods no longer are viewed that way, the term persists.
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  • When was a former IRS Commissioner convicted of tax evasion?

    Q: When was a former IRS Commissioner convicted of tax evasion?

    A: In 1952, former IRS commissioner Joseph Nunan got in trouble for tax evasion. In an odd twist, his problems were not due to corruption or hypocrisy but a simple misunderstanding over $2,000. He won a bet on a presidential election and forgot to claim the winnings on his tax return.
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  • How do you get an EIN number?

    Q: How do you get an EIN number?

    A: Contact the Internal Revenue Service to apply for an Employee Identification Number (EIN). Apply online, by mail, fax or phone. Business owners who apply over the phone should be prepared to answer the same questions included on the IRS Form SS-4, Application for an Employer Identification Number.
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  • What are some examples of direct tax?

    Q: What are some examples of direct tax?

    A: Some examples of direct taxes include income taxes, taxes on assets and real property and personal property taxes. These are taxes that a person must pay directly to the entity collecting the tax. The taxpayer is not able to shift the burden of these taxes onto another individual or group.
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  • What is fat tax?

    Q: What is fat tax?

    A: As of 2014, a fat tax is a proposed tax on unhealthy foods to discourage consumers from buying them. This tax, also known as the Twinkie tax, was largely developed by Kelly Brownell, a psychology professor at Yale University, who discussed the idea in the New York Times in 1994.
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  • How did Willie Nelson get into tax trouble?

    Q: How did Willie Nelson get into tax trouble?

    A: American country music legend Willie Nelson got into trouble with the Internal Revenue Service (IRS) when he used an illegal tax shelter in the early 1980s to avoid paying federal income tax - to the tune of $16.7 million. In 1990, federal authorities raided his property and seized his assets, including his Texas ranch. They didn't make off with Nelson's favorite guitar, Trigger, which he made sure to keep safe.
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  • How is tax added to a price?

    Q: How is tax added to a price?

    A: Tax is added to the price of a product by first determining the tax amount by multiplying the tax rate by the product price, and then adding the tax amount to the product price, according to the Basic-mathematics.com. Tax rates are determined by each state.
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  • What are some examples of indirect tax?

    Q: What are some examples of indirect tax?

    A: One example of an indirect tax is sales tax, which is imposed entirely on the buyer rather than both on the seller and the buyer. Indirect taxes are taken from stakeholders that are generally not thought to be entirely responsible for the amount being taxed.
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  • Are property taxes deductible?

    Q: Are property taxes deductible?

    A: Typical real estate property taxes are deductible, as of 2014. Amounts paid for local and state property taxes can be included on itemized federal tax returns. The deduction is for the actual payment to the taxing authority, not the amounts paid in to escrow.
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  • How do you find a company's tax ID number?

    Q: How do you find a company's tax ID number?

    A: Company tax identification numbers are procured from the Internal Revenue Service, public company documents or fee-based resources such as Lexis or Westlaw. The IRS issues, stores and maintains all employer tax identification numbers in the United States. However, the IRS requires authorization from the underlying company to receive the tax ID number.
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  • What is France's "Google tax"?

    Q: What is France's "Google tax"?

    A: France's so-called "Google tax" isn't aimed at the search-engine company but rather at the international tech industry as a whole. The tax allows the French government to levy taxes on Internet companies that operate in France like traditional businesses.
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