An official document issued by the Internal Revenue Service (IRS) permitting the undersigned to claim residency within the U.S. for income tax reporting purposes. The form is officially called a "Certificate of Alien Claiming Residence in the United States", and will make the undersigned's total income subject to the tax laws of the United States for the tax period … [Read more...]
Tax Avoidance : an Overview
Tax avoidance is the legal utilization of the tax regime to one's own advantage, to reduce the amount of tax that is payable by means that are within the law. By contrast, tax evasion is the general term for efforts to not pay taxes by illegal means. The use of legal methods to modify an individual's financial situation in order to lower the amount of income tax owed. This is … [Read more...]
The U.S Tax Withholding System
Understanding The U.S. Tax Withholding System As we all know that Income taxes aren't always withheld from people's paychecks. In fact, income tax withholding is a relatively recent development. Tax withholding first occurred in 1862 under Abraham Lincoln for the purpose of helping to finance the Civil War. The federal government also implemented a plethora of excise … [Read more...]
7 Ways To Avoid Self-Employed Tax Penalties
When you're self-employed, you're required to send in quarterly estimated tax payments. But if your income varies from month to month or year to year, it's tough to determine the amount of taxes to pay each quarter. You don't want to send in so much that your daily expenses suffer, or too little that you get a shocking tax bill at tax return time - plus underpayment penalties … [Read more...]
Best 6 Sources Of Nontaxable Income
The government says that all types of income are taxable unless specifically excluded by law. Income That Isn't Taxed includes the following : 1. Disability Insurance Payments Usually, disability benefits are taxable if they come from a policy with premiums that were paid by your employers. However, there are many other categories of disability benefits that are … [Read more...]