There is no special tax on money used to pay taxes. But all the regular taxes will be charged on the money used to pay taxes.For example, let's say your weekly salary is $100.You calculate your taxes on the full $100 and it comes out to be $25. So you send $25 to the government (or your employer takes it out of your pay and sends it for you) and you get to keep $75. So, yes, you did pay tax on that $25 that got sent to the government.The federal government does allow some deductions for state and local taxes. You can deduct either state income tax payments or state sales tax payments (both not both) and you can deduct real estate tax payments. A very few states allow a deduction for federal income taxes.
Tax free means that you will never be taxed on those savings. It's an exclusion as opposed to tax deferral where you will have to pay taxes sometime in the future. For example, when you contribute money to an IRA account, you can deduct that portion in the year that the contribution was made. However, let's say at the age of 75 you withdraw money from the account, that money will then have to be included in taxable income and will be subject to tax.
There are several variables which will affect the answer such as the number of exemptions you claim, the state income tax rate, other state taxes such as unemployment and disability, contributions to health insurance or retirement plans, union dues, etc. However, 70% - 75% or 252 - 270 is a rough estimate for a single person person with one exemptions.
It depends on how involved your return is. Big companies like H&R Block have trained tax specialists (not CPAs) who can competently do your taxes for a bit less than a CPA. The rate varies, depending on whether you file a simple return or an itemized return, and the rate varies per location around the country. Expect to pay anywhere from $75-100 for a simple return, and upwards from $225 for a return that is more involved. Any tax preparer will give you a quote, so call around to research the options.
We're talking plain vanilla call options, correct? Say, a $49 call on 100 shares of Acme at a $1/share premium. (The weird strike price will make sense in a second.) The IRS considers all the money you paid to buy the stock to be the "basis price," so add the strike price of $49 to the premium of $1, multiply by 100, and you get a basis of $5000 for this transaction. (I'm going to leave out commissions here because I want the math to be real simple to understand.) At this point the IRS doesn't want you to file anything. You only file when you sell, because until you sell there's no capital gain or loss incurred. Four years down the road, you decide to sell this block of stock. The price has gone to $75 per share. Subtract the $50 basis from the $75 sale price, and you've got a $2500 capital gain that you get to pay taxes on.
75 years old
It's not YOUR 75, it's YOU'RE 75. If you won the Trifecta the track would take 20% and you would have to get a refund when you file YOUR tax return.
When you are 75 years old, you will have slept for 23 years in your lifetime.
75 years old
504 years old
BIgger and take more taxes
75 years old
Over 75 years old
75 years old
Around 75 years old
45
No.