Taxes

A:

Energy tax credits are incentives to lower taxes for people who use alternative energy resources. These are authorized by the U.S. Congress. They work by reducing income tax owed by a dollar-for-dollar basis. In contrast, a tax deduction lowers the amount of income subject to tax.

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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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  • 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 Much Do You Have to Make to File a 1099?

    Q: How Much Do You Have to Make to File a 1099?

    A: If you earn $600 or more working as an independent contractor for one company, you need to file a 1099 form to the Internal Revenue Service. The company should send you a 1099-MISC form by January 31 of the following year.
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  • How Did Chuck Berry Get Into Tax Trouble?

    Q: How Did Chuck Berry Get Into Tax Trouble?

    A: Rock and roll pioneer Chuck Berry served 120 days in prison during the late 1970s as a result of tax evasion chargers. This sentence also included a requirement that Berry complete 1,000 hours of community service, which he apparently took care of by performing concerts.
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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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  • 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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  • Why Do Baby Names in Sweden Need Tax Agency Approval?

    Q: Why Do Baby Names in Sweden Need Tax Agency Approval?

    A: There are a couple of reasons why the Skatteverket, the Swedish tax agency, oversees the names Swedes give to their children. Their goals are to protect children from potentially confusing or offensive names and to prevent Swedes from naming their children after the Swedish royal family.
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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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  • 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 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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  • 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 "Where's My Refund" tool. The IRS updates refund statuses every 24 hours.
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  • How Can You Find Out Whether You Owe Money to the IRS?

    Q: How Can You Find Out Whether You Owe Money to the IRS?

    A: The IRS Tax Help Line for individual taxpayers, available at 1-800-829-1040, provides information about prior-year tax returns and any account balances due to the IRS. This line is designed for taxpayers who submitted a Form 1040 return.
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  • Are Church Tithes Tax Deductible?

    Q: Are Church Tithes Tax Deductible?

    A: According to Publication 526 of the Internal Revenue Service, cash donations to religious organizations are tax-deductible. Examples given in the publication include "churches, a convention or association of churches, temples, synagogues, mosques and other religious organizations." Since tithes are monetary gifts to a church, they are not subject to taxation by the IRS.
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  • What Is Estate Tax?

    Q: What Is Estate Tax?

    A: Estate tax is a federal or state tax on property that a person owns at death and is transferred to another person or entity through a will or through the state laws that govern the assets of people who die without a will, called intestacy laws. Everything a person owns at death, including cash, stock, real estate, insurance proceeds and business interests, comprises the person's estate.
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  • Why Does Maine Have a Blueberry Tax?

    Q: Why Does Maine Have a Blueberry Tax?

    A: Maine's blueberry tax is related to the berry's success as an export. This state alone produces as much as 99 percent of the wild blueberries consumed in America, and the tax impacts the growers, sellers and workers who support the blueberry industry.
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  • Why Are Taxes Important?

    Q: Why Are Taxes Important?

    A: The IRS indicates that taxes are vital to support the infrastructure that citizens rely on at the local, state and federal levels. Taxes support national defense programs, roadway construction, social service programs, public health and education. Without taxpayer support, many of these programs cannot exist.
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  • What Are Energy Tax Credits?

    Q: What Are Energy Tax Credits?

    A: Energy tax credits are incentives to lower taxes for people who use alternative energy resources. These are authorized by the U.S. Congress. They work by reducing income tax owed by a dollar-for-dollar basis. In contrast, a tax deduction lowers the amount of income subject to tax.
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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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  • 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 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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