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Do you have to pay tax on money given to you by your parents?
No, unless the amount is over $500
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The money is taxable income and should be reported. If it is over $600 they must receive a W-2 and the payor reports it to the IRS. Large amounts paid as part of a TIPS prog…ram or such may even be subject to having withholding taken (similar to winning at a casino). If some bumb on the street who gets $50 for for giving up info actually reports it on a return, lord knows.
Not if your are a self employed taxpayer and the other taxpayer has your social security number in order to get the tax credit for the child care expenses. If you are a self… employed taxpayer then you are responsible for all of your own FICA self employment taxes of 15.3% plus any income taxes on your net profit from your business operation at your marginal tax rate. You will need to report that income, and any related expenses, on Form 1040, Schedule C, Profit or Loss from Business, or you may qualify to use Form 1040, Schedule C-EZ, TO determine your Net Profit from Business. You will also need to use Form 1040, Schedule SE, Self-Employment Tax to compute and report your social security and Medicare tax. For instructions and forms go to www.irs.gov and use the search box for publication 334 a very good place to start with examples http://www.irs.gov/pub/irs-pdf/p334.pdf http://www.irs.gov/publications/p463/index.html Publication 463 Travel, Entertainment, Gift, and Car Expenses Use the search box at www.irs.gov for Small Business and Self-Employed Tax Center Filing Season Central is your one stop assistance center for filing your business returns. This includes Highlights of Tax Law Changes, Tax Tips, and more. http://www.irs.gov/businesses/small/index.html 2 of the seven tax tips for starting a business enclosed below. #4. Good records will help you ensure successful operation of your new business. You may choose any record keeping system suited to your business that clearly shows your income and expenses. Except in a few cases, the law does not require any special kind of records. However, the business you are in affects the type of records you need to keep for federal tax purposes. #7. Visit the Business section of IRS.gov for resources to assist entrepreneurs with starting and operating a new business. Go to www.irs.gov and use the search box for the below referenced material *Starting A Business *Operating A Business *Closing A Business *Publication 4591, Small Business Federal Tax Responsibilities (PDF 470.1K) For more detailed information go to www.irs.gov and use the search box and type Publication 583, Starting a Business and Keeping Records. http://www.irs.gov/publications/p583/index.html The following are some of the types of records you should keep: *.Gross receipts are the income you receive from your business. You should keep supporting documents that show the amounts and sources of your gross receipts. Documents for gross receipts include the following: *. Cash register tapes *. Bank deposit slips *. Receipt books *. Invoices *. Credit card charge slips *. Forms 1099-MISC and more information is available below ANS PLEASE REVIEW THE PUBLICATION LINKED HERE: http://www.irs.gov/taxtopics/tc756.html Whether a person is an employee or an independent contractor is complex. However each require reporting. In reality, the casual hiring of a local kid to babysit, is NOT a target, or even the intent, of the tax laws. If that kid. like some today, is actually entreprenaurially rnning a business, or if you hire them regularly, that is a different story.
Can you deduct from your taxes money given to elderly parents to help supplement their lack of income and or pay their medical bills?
No deduction on your income tax return for the gifts to your parents.
If the money is given to you as a no-strings-attached gift, no. Money given to you by your employer or in exchange for goods or services is not a gift no matter what you agr…ee to call it.
If you are in the US, technically that would be income and you'd have to file it under miscellaneous income, much like if it were gambling winnings. Yes it is taxable -… basically, increases in wealth are taxable. The "hidden hoard" is a famous tax case where someone bought a Piano and much latter found a hoard of $ in it. There were tax accounting issues as to the $...could they offset it by the cost of the Piano, did they actually "buy" the money when they bought the piano...etc....but the bottom line is...found value is taxable.
There is no income tax due on gifts, and there will be no gift tax unless the gift exceeds $12,000 per individual. (A married couple can each give $12,000 - so they coul…d give their son $24,000 and their daugher-in-law $24,000 for a total of $48,000 gifted in each tax year.)
You pay federal taxes to the Internal Revenue Service (IRS). You pay state and local taxes to the state or local tax department. You would enter prizes on your year-end ta…x return just like you would enter wages (except on a different line) and then calculate the tax due and pay any balance due.
No. They may have to pay gift tax. See discussions under that topic.
You are legally required to pay taxes. Taxes are only due on money you have earned therefore if you owe taxes you have had the money. If you do not pay the taxes you owe you w…ill be sent to court and made to pay - even if you go to prison you will still owe the tax man.
You can have some income tax withheld from the distribution amount are you can choose to make some quartely estimated tax payments or you can wait until you file your income t…ax in the next year after the year that you receive the distribution amount by the due of your income tax for the previous year return and pay the full amount of taxes at that time. A calender year taxpayer the due date for filing and paying any amount owed would be April 15 of the next year
To answer your question, the taxes you pay on the money you earn (salary, income) is called income tax.
Answer It depends...and the term gets used too many ways so lets use a more general way of understanding it: If the payment, regardless of it's name, is to r…eplace something you have lost, like property or a limb or such, then (as long as you have not deducted that loss as a casualty loss or any other way), it is NOT a taxable payment. If it is for just about anythign else, in lieu of money you didnt make or as a punishment for example, it is taxable to you.
Generally speaking, life insurance proceeds (death benefits) are received income tax free by policy beneficiaries.. Any subsequent monies that are earned through investment o…f those proceeds, unless specifically invested in tax-free ionvestments, would be subject to state and federal income taxes.
In Foster Care
Yes of course they do. They have to have an income since you don't get paid to foster, you just get money to cover the child's expenses. You still need a job.
In the U.S. the general answer is yes, legally you are supposed to pay tax on any casino winnings. That said, you can also deduct losses up to the amount of your winnings. You…r CPA should be able to give you more specific information.
Answer Understand that making money and having taxable income are different things...not all money you receive is considered taxable income. Additionally, ev…en with taxable income, because of many things, like deductions, credits and the very low tax on small earnings...you may not actually owe any tax. If you don't file a return, you will alwys be open to audit for that period...the statutate of limitiations on being audited basically runs from the time the return is filed. Anyone may file a return. It is generally a good idea for many reasons. Many people who may not have to file a return (generally because their earings are too low), will benefit substantially by doing so...because of the many government programs that provide benefits to those same people. IRS TAX TIP 2007-02 You must file a tax return if your income is above a certain level. The amount varies depending on filing status, age and the type of income you receive. For example, a married couple under age 65 generally is not required to file until their joint income reaches $16,900. However self-employed individuals generally must file a tax return if their net income from self employment exceeds $400. Check the ?individuals? section of the IRS Web site at IRS.gov or consult the instructions for form 1040, 1040A or 1040EZ for specific details that may affect your need to file a tax return with IRS this year. Even if you do not have to file, you should file to get money back if Federal Income Tax was withheld from your pay, or you qualify for any of the following: ? Earned Income Tax Credit. The Earned Income Tax Credit is a federal income tax credit for eligible low-income workers. The credit reduces the amount of tax an individual owes, and may be returned in the form of a refund. ? Telephone Tax Refund. The telephone tax refund is a one-time payment available on your 2006 federal income tax return, designed to refund previously collected long-distance federal excise taxes. It is available to anyone who paid long-distance taxes on landline, cell phone or Voice over Internet Protocol (VoIP) service. ? Additional Child Tax Credit. This credit may be available to you if you have three or more qualifying children or if you have one or two qualifying children and earned income that exceeds $11,300. The Additional Child Tax Credit may give you a refund even if you do not owe any tax. ? Health Coverage Tax Credit. Limited to certain individuals who are receiving certain Trade Adjustment Assistance, Alternative Trade Adjustment Assistance, or pension benefit payments from the Pension Benefit Guaranty Corporation. For more information about filing requirements and your eligibility to receive tax credits, visit the IRS Web site at IRS.gov. See Related Links See the Related Link for "http://www.irs.gov/newsroom/article/0,,id=105097,00.html" to the bottom for the answer.