The new tax season coming up and the number of NRAs increasing every year. 𝗟𝗲𝘁𝘀 𝗹𝗲𝗮𝗿𝗻 𝗮𝗹𝗹 𝗮𝗯𝗼𝘂𝘁 𝗜𝗧𝗜𝗡 𝘁𝗼𝗱𝗮𝘆- An Individual Taxpayer Identification Number (ITIN) is a nine-digit number issued by the Internal Revenue Service (IRS) to individuals who are required to have a taxpayer identification number but are not eligible for a Social…
1. Form W-2: – Meaning: Wage and Tax Statement. – Purpose: Reports wages paid to employees and taxes withheld. – Eligibility: Employers must file for each employee. – Due Date: Submit to employees and the SSA by Jan 31. 2. Form 1099-NEC: – Meaning: Nonemployee Compensation. – Purpose: Reports payments of $600+ to independent contractors. – Eligibility: Businesses…
Understanding the differences in state taxes is crucial for both individuals and businesses. Each U.S. state has unique tax policies that can affect your finances. Here’s a breakdown of how different states approach key taxes: 1. Income Tax: 👉No State Income Tax: Alaska, Florida, Nevada, South Dakota, Texas, Washington, Wyoming 👉States with Progressive Income Tax…
As we approach the 2024 tax season, it’s important to be aware of the key Information Return forms that help ensure proper tax reporting. Here’s a breakdown of the most common forms: 📄 1. Form 1099• Purpose: Form 1099 is used to report a variety of income types that aren’t captured on a W-2….
Exploring U.S. Topography and State Tax Landscape The United States is known for its diverse topography, ranging from the towering Rocky Mountains and serene Appalachian ranges to the sprawling Great Plains and vibrant coastal lines. This geographical diversity shapes not only the country’s culture and lifestyle but also its economic and tax systems. When…
Did you know that your Social Security benefits could be taxable depending on your income? Understanding the taxability of these benefits is crucial for managing your taxes efficiently. Here’s everything you need to know! When Are Social Security Benefits Taxable? Your benefits may become taxable if your combined income exceeds certain thresholds. Combined income includes:…
Master the Kiddie Tax Rules for 2025 with Confidence! The Kiddie Tax ensures that a child’s unearned income is taxed fairly. For parents managing a dependent child’s investments or passive income, understanding this rule is essential. Here’s a detailed breakdown for 2024: What is the Kiddie Tax? • It applies to dependent children under: •…
What Are Tax Deductions?A tax deduction reduces your taxable income, which in turn lowers the amount of tax you owe. Think of it as a way to shrink the portion of your income that is subject to taxation. For example: If you earn $50,000 a year and claim a $5,000 deduction, your taxable income becomes…
Statement of Specified Foreign Financial AssetsWith the increasing globalization of financial markets, IRS Form 8938 has become a crucial requirement for U.S. taxpayers holding foreign financial assets. Here’s everything you need to know: What is Form 8938?Form 8938 is a reporting requirement under FATCA (Foreign Account Tax Compliance Act). It ensures that taxpayers disclose certain…
Let’s break down a big tax concept, gross income, in simple words. If you earn money, you need to know what gross income is because it’s the starting point for figuring out your taxes. What Does Gross Income Mean? Gross income is all the money you make from any source. Think of it like…
