Tag Archives: Social Security
Certain payments, depending on the circumstances, may be tax-free, despite other similar payments resulting in being taxed. The following three situations require special care to determine if the payment is tax-free. Legal Settlements: To determine if your court settlement should be taxed, you need to consider the reason the settlement was granted, and if it […]
— Read moreIf you receive Social Security disability benefits, you should be aware that they are taxable. However, many aren’t required to pay on them. Social Security disability benefits are taxed, but those who have very little additional income usually don’t have to pay the tax. Statistically, those who do pay taxes on their Social Security Disability […]
— Read moreAlong with federal income tax, you are required to pay taxes on most income you earn as a resident of your home state. This income tax is assessed under specific regulations, and each state has different rules about what qualifies as taxable income. In twenty-seven of the fifty states and the District of Columbia, Social […]
— Read moreAs a service professional, sometimes there can be nothing more rewarding than a generous tip from a customer. While those tips may feel great in the moment, come tax time, you can’t forget to include them in your income. The IRS offers these tips for taxing your hard earned tips: They’re taxed. Tips are considered […]
— Read moreAny amount of savings at tax time is beneficial for the self-employed, and new tax breaks make it even easier to accrue said savings. Legislation was enacted to allow workers to deduct costs related to paying their own health insurance before payroll taxes are calculated. As a self-employed taxpayer, this legislation can reap great benefits […]
— Read moreWage Base The wage base changes every year, and is the income level at which the full tax rate of 15.30% will apply to withhold Social Security and Medicare taxes. In 2015, the 15.30% rate (a combination paid by employers and employees) is applicable to the first $118,500 of income or self-employment earnings. After that, […]
— Read moreMany seniors receive Social Security benefits as part of their income, however whether or not those benefits are taxable is reliant on any other benefits or income received throughout the year. Monthly retirement, survivor, and disability benefits are all included in Social Security income, although supplemental security income (SSI) benefits are non-taxable and therefore not […]
— Read moreEstimated Tax Payments When you have any form of income that isn’t subject to regular taxation, such as retirement distributions or self-employment pay, the IRS may hold you accountable for making payments to cover any amount of tax you may owe at the end of the year. If you don’t pay the correct amount, (your […]
— Read moreWhen you work in the food service industry, especially as a waitress/waiter, busboy, hostess, or sommelier, you may rely on tips as part of your income. This additional income can get confusing at tax time, as you may not know what you are required to report to the IRS. Whether you receive tips or not, […]
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