Taxes

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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  • Can I claim my dog on my taxes?

    Q: Can I claim my dog on my taxes?

    A: People cannot claim their dogs as dependents on their federal income taxes. According to the Internal Revenue Service Publication 501, a dependent must have a valid tax identification number to be claimed.
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  • How do you file a tax extension?

    Q: How do you file a tax extension?

    A: In order to file a federal tax return extension with the United States Internal Revenue Service (IRS), individuals need to fill out the IRS's form 4868. This form, which must be submitted by April 15th, will grant taxpayers an extra 6 months to prepare their annual income tax return.
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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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  • 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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  • 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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  • What is the purpose of an audit?

    Q: What is the purpose of an audit?

    A: An audit is a process that the Internal Revenue Service uses to check that the numbers of an account correspond with the tax return. While the IRS chooses to audit those with suspicious activity on their returns, there are also audits on a random sample of people and companies.
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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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  • Can you deduct healthcare costs from your taxes?

    Q: Can you deduct healthcare costs from your taxes?

    A: While there are some ways to deduct medical expenses from federal taxes, the rules for who and what qualifies for these deductions are strict and may be a bit confusing to some taxpayers. For example, there is a rule stating that taxpayers and the spouses of taxpayers who are 65 years and older may deduct medical expenses that are more than 7.5 percent of the taxpayer's gross income so long as those expenses were not reimbursed. This rule only applies during the period of Jan. 1, 2013 through Dec. 31, 2016, further narrowing the field of which senior citizen taxpayers qualify to claim medical expenses on a tax return.
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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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  • What is the difference between a flat tax and a fair tax?

    Q: What is the difference between a flat tax and a fair tax?

    A: According to About.com, a flat tax refers to a proposed income tax system in which everyone pays the same "flat" tax rate regardless of income level. Meanwhile, a fair tax refers to a proposal that seeks to tax money that is spent rather than money that is earned by establishing a national sales tax and abolishing federal income and corporate taxes. This latter idea is delineated on FairTax.org.
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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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  • 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 tariff?

    Q: What is a tariff?

    A: According to Investopedia, a tariff is a tax imposed on goods and services imported from another country. This is a tool used by governments as a trade barrier.
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  • What is "intangible tax"?

    Q: What is "intangible tax"?

    A: An intangible tax is a tax assessed by federal and state governments on assets of intangible value, such as goodwill, the value of a worker’s experience and/or knowledge, trade and franchise names, non-competitive agreements related to business mergers and acquisitions, trademarks and a company’s human capital. The Internal Revenue Service defines intangible assets as types of property that possess value but cannot be touched or seen.
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  • What is the percentage taken out for taxes on a paycheck?

    Q: What is the percentage taken out for taxes on a paycheck?

    A: Precise percentages vary based on state, but according to the Ventures Scholars Program, four primary taxes are withheld from paychecks: federal income tax, state income tax, social security tax and Medicare tax. According to The Law Dictionary, taxes are withheld on a sliding scale that extracts more income from higher-earning individuals, topping out at 39.6 percent in 2014.
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  • How much is the import tax from China to the USA?

    Q: How much is the import tax from China to the USA?

    A: The import tax from China to the United States varies based on the product. For instance, the maximum amount of tariff for imported eel products is 16 percent, while the same maximum for imported zinc oxide is 5.5 percent.
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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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  • 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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  • 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 does the U.S. government do with tax money?

    Q: What does the U.S. government do with tax money?

    A: Public works are financed using tax dollars. The largest portion of tax revenues (24 percent) are spent on Social Security by way of payments to the elderly and disabled.
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  • Why are Swiss bank accounts so special?

    Q: Why are Swiss bank accounts so special?

    A: Switzerland's strict privacy laws make it difficult to see who holds an account there, making Swiss bank accounts ideal for those who are trying to hide money. In other words, Switzerland makes an excellent tax shelter for those who want to keep their money in a bank but don't want to pay taxes for it.
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