There are some additional taxes that are not based on net taxable income. Here are some of them. Self-Employment Tax There is an additional tax levied on all the earned income of self-employed individuals. The rate is 15.3% for the
Before the actual amount of tax to be paid is determined, various direct offsets to tax liability are taken. Such “direct offsets” are called “tax credits.” The credits are dollar-for dollar-reductions of the tax liability. Credits are usually calculated based
Health savings account (HSA) Contributions other than employer contributions, rollovers, and qualified HSA funding distributions from an IRA to your HSA are deductible. One-half of self-employment tax If you are paying a self-employment tax, either from your Schedule C business
The first step is to add all the wages, interest, dividends, net income from rental properties, net business profits, various pension payments, and net capital gains (losses) – everything taxable and received during the reporting year. Next, take deductions. Deductions
Dependents can be a “qualifying child” and/or a “qualifying relative”. Note: Social Security Numbers or ITINs (Individual Taxpayer Identification Number) are required for dependents. “Child”: a son, daughter, stepson, or stepdaughter of the taxpayer, any foster child placed with the
DAO: The Structural Issues Blockchain technology has evolved to offer programmatic solutions for augmenting the governance potency of organizations by implementing smart contracts, the execution of which is guaranteed upon the occurrence of certain events. This allows for an organizational
Optimizing Tax Strategies and Independent Contractor Management for Consulting Businesses: Billing Structures and Contractor Tax Considerations Tax planning forms an important part of success in the dynamic consulting industry because it helps financial stability as well as profitability. Consulting firms
Code Sec. 174: Research and Experimental expenses incurred in the years starting after 12/31/2021 must be capitalized and amortized over 5 and 15 years for US and foreign research respectively. Taxpayers must look at where the activities are performed to
Navigating the Digital Maze: Tax Considerations and Strategies for Software Developers and IT Services In the fast-paced world of technology, staying tax-compliant is essential for software developers and IT service providers. This guide sheds light on the complex tax landscape
Tax Implications and Strategies for the Shipping and Transportation Industry: Navigating the Logistics of Taxation In the world of global commerce, shipping companies play a vital role. This guide delves into the tax considerations that are crucial for the smooth