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Individuals, who work, receive an income, based upon the wages that they make from their employment. This income is considered to be taxable income. Some individuals have
from their income that are pre-
and some that are post-tax. Pre-
make the taxable income lower. But are there other things that are considered to be taxable income? Are monetary gifts considered to be taxable income? Below are questions that have been asked of and answered by the Experts, regarding taxable income.
What is taxable income?
Taxable income is the base from which
systems impose taxes. This income usually has included many types of income and has often been reduced by deductions and expenses. These things such as income, deductions, and expenses may vary by the income tax system or the country the income tax system is based. An individual’s income, businesses income, and other groups such as partnerships are known as taxable income. There are some income tax systems that use as their base on taxable income for a given period of time or a period of time prior. Also some income tax systems have some income that is not considered taxable income and that expenses are not considered to be deductible.
Are monetary gifts considered to be taxable income?
Due to the current
having an annual exclusion on gifts of $13,000; if the monetary gift received is less than that amount, and then gift is not taxed and not considered taxable income. All
have a lifetime amount of 1 million dollars that is not taxable. If the annual monetary gift is more than the amount that is allowed, then the individual that is gifting the money will be required to make a report on the money that is gifted, by filling out a IRS form 709. The individual may give as many monetary gifts as they desire as long as the amount of money given to any one individual is not more than the allowed amount.
Are funds received from a retirement plan for disability considered to be taxable income?
If the individual, who is receiving the funds from the retirement plan for being disabled, also receives a 1099 form yearly, then yes the income is considered to be taxable income. If the individual does not file a tax return or pay the taxes on the monies that they have received, the IRS will be after them for the
that the individual owes on the monies that they have received. If this does happen then the individual should talk to a
tax service to help them get the situation with the IRS corrected.
How is taxable income computed for a corporation that must follow the standards of Generally Accepted Accounting Principles (GAPP)?
Corporations that are required to use GAAP when reporting the company’s financial income will have a difference between taxable income and GAAP income. One difference is tax depreciation, in which immediate write-offs or depreciation that is accelerated over useful life that is shorter, as well as salvage value is not recognized by tax depreciation. If either of these methods of depreciation is used on GAAP financial statements then income will be distorted. Also GAAP allows for the recognition of
does not. For computation of taxable income, the GAAP income will first need to have adjustments made to it that were different for tax. On a tax return, the schedule M-1 will need to be used to balance the difference between the income on the books and the taxable income.
When dealing with taxable income, questions arise. These questions can vary from how to reduce taxable income, what is
federal taxable income
, and what is state taxable income? These and many more questions regarding taxable income can be answered by the Experts.
Recent Taxable Income Questions
I'm moving to Maryland in the near future and already dreading
I'm moving to Maryland in the near future and already dreading the higher state and local income taxes compared to Pennsylvania. I see the Maryland 529 College Investment Plan provides for a deduction to taxable income of up to $2,500 per beneficiary for each account holder (i.e., for Maryland state income taxes).
There are examples provided where a husband and wife can each open an account for the same beneficiary and effectively double the deduction per beneficiary to $5,000 across the two accounts. Individuals of any age, child or adult, are eligible beneficiaries for the College Investment Plan.
Since an adult is an eligible beneficiary under the plan, my thought is to open an account in my name, with my wife and daughter each as beneficiaries (2 x $2,500). Additionally, my wife to open a separate account with our daughter and me each as beneficiaries (again, 2 x $2,500). Total deduction across both accounts total up to $10,000. Under 529 rules, funds can be moved between beneficiaries.
To me, it seems to be a creative application of the options, but within the letter of the rules I've seen. Would appreciate an informed opinion on this specific arrangement.
I made roughly 66000 last year, I am married and my wife did
I made roughly 66000 last year, I am married and my wife did not work. We had a son on may7th of 2014. I claimed 3/0 in Texas. There was no outside income and no child care expense. I'm afraid my company messed up my taxes because although I am paid weekly, on occasion my pay stubs listed me as a bi-weekly employee. How much federal tax should have been withheld throughout the year?
If I'm wrong and I owe taxes and don't realize it. Would the
If I'm wrong and I owe taxes and don't realize it. Would the Appeal still stop their actions. And would that be eligible for a payment plan?
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