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If you are itemizing deductions (on a schedule A) as opposed to taking your standard deduction you have 2 different ways to deduct taxes paid to the state you live (or work) in. For the State Income Tax Deduction you can deduct the amount of taxes paid in 2007 (any state witholding from a W2, 1099G, 1099R etc., any balance due on a state tax return that you paid in 2007 and any estimated payments you made to your state's dept of revenue). The other method is the General Sales Tax Deduction. The General Sales Tax Deduction can be calculated 2 different ways. You can either add the sales tax you have paid to any state up manually, one receipt at a time. -OR- you can use the Safe Harbor method where you multiply the days you have lived in your state (365 if all year) by the state and local sales tax rate and your income (please refer to line instructions for form 1040 for a more detailed description of this formula) to that figure you will add any sales tax paid on qualified purchases (a house, a car, big ticket items) and that will be you deduction.
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Does gross sales include sales tax?
No. The sales tax is posted as a credit to the Sales Tax Payable Account. So, if you had a $100 sale plus $5 sales tax, you would debit cash $105, credit Sales $100 and credit Sales Tax Payable $5 Sales taxes are a collection you make for the State. It is funds entrusted to you by the State to be paid over to them. They are not part of your sales or receipts. (Gross income will be sales less cost of sales. This is before selling, general, administrative, interest and tax expenses are taken out.)
Is sales tax deductible from 2007 tax returns?
Sales tax is deductible as an itemized deduction (Schedule A), however you can deduct EITHER: -Sales Tax Paid -State income taxes paid Obviously you would want to deduct whichever is higher. This deduction can be very beneficial to people living in states that do not have an income tax, such as Florida.
Is earned income credit a tax credit?
The Earned Income Tax Credit or the EITC is a refundable federal income tax credit for low to moderate income working individuals and families. Basically, rather than withholding the tax, the money is available with your paycheck.
Is Payroll Tax considered Income Tax?
Yes. Any tax on income is income tax. Taxes imposed after income, such as sales tax, aren't.
Which state does not have either a sales or personal income tax?
Alaska does not have a state sales tax or personal income tax. However, some local government bodies in Alaska do impose a sales tax.
Does gross sales include sales tax?
No. The sales tax is posted as a credit to the Sales Tax Payable Account. So, if you had a $100 sale plus $5 sales tax, you would debit cash $105, credit Sales $100 and credit Sales Tax Payable $5 Sales taxes are a collection you make for the State. It is funds entrusted to you by the State to be paid over to them. They are not part of your sales or receipts. (Gross income will be sales less cost of sales. This is before selling, general, administrative, interest and tax expenses are taken out.)
What is the income tax credit for a child?
a credit agency garnished my income tax,is the the child tax credit exempt from the garnishment?
Is sales tax deductible from 2007 tax returns?
Sales tax is deductible as an itemized deduction (Schedule A), however you can deduct EITHER: -Sales Tax Paid -State income taxes paid Obviously you would want to deduct whichever is higher. This deduction can be very beneficial to people living in states that do not have an income tax, such as Florida.
What states have no income or sales tax?
well Florida has no income tax
Is Payroll Tax considered Income Tax?
Yes. Any tax on income is income tax. Taxes imposed after income, such as sales tax, aren't.
Is earned income credit a tax credit?
The Earned Income Tax Credit or the EITC is a refundable federal income tax credit for low to moderate income working individuals and families. Basically, rather than withholding the tax, the money is available with your paycheck.
Which state does not have either a sales or personal income tax?
Alaska does not have a state sales tax or personal income tax. However, some local government bodies in Alaska do impose a sales tax.
Which states have both sales tax and income tax?
The following do not pay local sales tax: Alaska Sales tax is that which has the tabular form in IRS site Income tax is that which is already withholded by any state etc
How can someone legally not pay taxes?
If they have tax exempt income for items such as a Roth IRA, then they do not have a tax burden. Also, it possible with low income and tax credits such as the child tax credit, Hope credit, and earned income credit, so have your total income tax reduced to zero.
After adoption is there a credit?
There is an adoption tax credit that was raised to $11,390 at the beginning of 2007 that applies to families with an adjusted gross income below $210,820.
What is tax for 22.83?
Sales tax? Income tax? Import duty?
Is sales tax deductable?
Gas tax is an excise tax not a sales tax. It is therefore not deductible for federal income tax purposes.
