Lose your job, make bad investments, lose money at your business, etc...but seriously, taxable income is determined by a variety of factors so there are various things that affect it.
First your income is added up from wages, investments, businesses, retirement, etc. Then there are tax deductions you can take which reduce your income to come up with your adjusted gross income. Most deductions are for self-employed individuals (taxes, health care, retirement) and these are separate from business expenses claimed to calculate business net income. There are other deductions for certain taxpayers, but you can read about those in the 1040 instruction book for lines 23-36.
If you have certain expenses you may be able to itemize deductions instead of using the standard deduction. Examples of expenses you can itemize are: mortgage interest, property taxes, charitable contributions, excessive medical expenses, and excessive employee expenses. There are a few other things as well & you can get a good explanation in IRS Publication 17, pages 140-201.
Itemizing really saves you the amount your itemized deductions exceed the standard deduction. For example, let's say you have $13,000 in itemized deductions and your standard deduction is $11,400. You're saving $1,600 in taxable income (which is @ $240 in tax at 15%).
Of course, the purpose of lowering taxable income is to lower tax, therefore, don't forget about tax credits. They're usually a better deal than deductions if there's option to do one or the other, like with education credits vs tuition & fees deduction. Of course, it depends on your tax bracket and the way the item is calculated.
The main thing about taxes is to use the benefits the law allows. Many folks pay more in taxes because they don't realize that there are deductions or credits for which they already qualify.
Yes, redundancy pay is part of your income and is therefore taxable. Of course, if you have been declared redundant, your next year's income will probably be lower, and hence you will pay less income tax.
Taxable income is the total amount of your income that is taxable. Certain types of income are exempt from taxes, but most income is taxable. To find out more information about taxable income, go to http://en.wikipedia.org/wiki/Taxable_income
ALL income is taxable.
Yes, Bonuses are income and income is taxable
Supplemental security income (SSI) is not taxable income.
No it is not taxable
Yes, redundancy pay is part of your income and is therefore taxable. Of course, if you have been declared redundant, your next year's income will probably be lower, and hence you will pay less income tax.
Taxable income is the total amount of your income that is taxable. Certain types of income are exempt from taxes, but most income is taxable. To find out more information about taxable income, go to http://en.wikipedia.org/wiki/Taxable_income
ALL income is taxable.
Yes, Bonuses are income and income is taxable
Supplemental security income (SSI) is not taxable income.
In the UK, the HM Revenue & Customs website offers detailed information about taxable income. It is also explained what counts as taxable income and what counts as a non-taxable income.
Yes, any income no matter how you make it is taxable.
Persons taxable income is the taxable income of any individual like owners or anybody in normal life which includes salary income, income from any business in partnership etc.
Gross Income - Above the Line Deductions = Adjusted Gross Income - (Deductions +Exemptions)= Taxable Income
If you are a non-resident, you're taxable income for Georgia is zero. Georgia taxable income is income that you earned as a resident of Georgia.
U will see whether it is taxable or below taxable limit. As long it is beyond taxable limit, u will have to pay tax on taxable income on prescribed rates. If all the income is below taxable limit, no tax to be paid