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What else can I help you with?
Do I pay taxes if I set up a trust fund for someone?
You do pay taxes if you set up a trust fund for someone. Depending on the type of trust, the money can be sheltered in some tax free forms but in general the person receiving the trust fund will eventually pay taxes even on those types of shelters.
Why do wepay taxes?
We pay taxes to fund government activities.
Do you pay taxes on a trust inheritance?
Depending on where someone lives depends on the need to pay taxes on any inheritance they get from a living trust. The beneficiary of an estate from inheritance will need to pay taxes to take possession of assets.
Do you earn interest on your income tax trust?
It looks to me like you will actually pay income taxes on a trust fund, not earn interest. However, I would consult a reputable CPA, since you definitely don't want to skip paying taxes, as the IRS is a formidable debt collector.
Why were taxes created in America?
Taxes were created to fund the military and create jobs within the government. Revenue from state sales taxes pay for jobs within the state, property taxes pay for public education, and federal taxes pay for the military and those employed by the federal government.
What happens to the money between the time a worker pays into a trust fund and the time when he or she collects benefits from that fund?
The money in the trust fund is invested and some of the income is used to pay future benefits. As a result, the net value of the fund increases over time.
What is the tax that funds the US military?
Any Federal Taxes funds the Active Duty and Reserve and any State taxes fund that States National Guard. So all who pay taxes technically pay or fund the US Military, just as you would fund schools, road repairs or construction, parks and wildlife, bailouts, health care reforms, welfare, Medicare/Medicaid and many others. All soldiers pay taxes so they themselves are paying for themselves.
What are trust relationships?
A trust relationship is where you put a very large trust fund up for both to use. Every year you add money to that fund. The fund is all of your money for the year, taxes, gas, personal items. A good size fund is your yearly earnings -10000. The money would help you get on your feet if something bad happens. make sure you still have enough money to put in the fund
Is a trust funded by life insurance policy after death of trustor?
A life insurance policy is an excellent way to fund a trust. Any way of placing necessary funds into the trust are acceptable. If you have cash and wish to fund it with cash this is fine. Life insurance is a good way to fund a trust because you can pay premiums and be assured that the money will be there when you die to fund a trust that you want to set up for someone.
What are taxes you pay to the federal government called?
Taxes paid to the federal government are primarily called federal income taxes, which individuals and businesses pay based on their earnings. Other types of federal taxes include payroll taxes, which fund Social Security and Medicare, and excise taxes on specific goods and services. Additionally, there are estate and gift taxes that apply to wealth transfers. Collectively, these taxes help fund government operations and programs at the federal level.
Will a child's trust fund be used to pay parents debts?
see The Coogan Act-1939
Will Republicans use funds from social security to fund the tax cut?
There is no evidence to suggest that Republicans intend to use funds from Social Security to fund the tax cut. Social Security operates on its own funding system through payroll taxes and has a separate trust fund specifically designated for it. Any changes to Social Security funding would require separate legislation.
