0
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.
What else can I help you with?
Do you pay taxes on 401k?
Generally, your contributions aren't taxed (put in before taxes), and your withdrawals are taxed.
I inherited an IRA from my mother who passed away last year. Do I have to pay taxes on the IRA Does it go directly on my Income Thanks.?
Yes, you will have to pay taxes. You can take the money lump sum and pay the taxes this year, or you can roll it over into an inherited IRA and pay the taxes as the money is distributed. You will be taxed at your normal marginal tax rate.
Do you stop getting taxed if you stop getting money?
You do not have to pay income tax if you do not have any income. Depending upon what you do, however, you may still have to pay sales tax, excise taxes, property taxes, etc.
Do I have to pay annual taxes on my fixed annuities?
No, fixed annuities are generally tax-deferred. You will pay taxes on it when you remove the money from the annuity. Fixed annuities are not taxed so no you would not have to. You can find out more facts about how they work by visiting www.moneymanagment.info.
What if you have no money to pay your taxes?
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 will be sent to court and made to pay - even if you go to prison you will still owe the tax man.
What do you pay if you have an inheritance that arrive from a different country?
I will get money from inheritance already taxed in Germany. Do I have to pay taxes in California too ?
What are the differences between pretax contributions and Roth contributions in terms of retirement savings?
Pretax contributions are made with money that has not been taxed yet, so you pay taxes on the money when you withdraw it in retirement. Roth contributions are made with money that has already been taxed, so you don't pay taxes on the money when you withdraw it in retirement.
Do you pay taxes on 401k?
Generally, your contributions aren't taxed (put in before taxes), and your withdrawals are taxed.
what is a roth ira & how does it differ from a regular ira?
IRAs are typically pre-taxed savings accounts, which offer you an initial tax break by lowering your taxable income. You will pay taxes on the money as it is withdrawn. ROTH IRAs are typically not pre-taxed and therefore you do not pay taxes on money that is withdrawn.
Do you have to pay taxes on a student grant?
No, they are not taxed.
What are the differences between pre-tax and Roth contributions in retirement accounts?
The main difference between pre-tax and Roth contributions in retirement accounts is how they are taxed. Pre-tax contributions are made with money that has not been taxed yet, so you will pay taxes on the money when you withdraw it in retirement. Roth contributions are made with money that has already been taxed, so you won't have to pay taxes on the money when you withdraw it in retirement.
I inherited an IRA from my mother who passed away last year. Do I have to pay taxes on the IRA Does it go directly on my Income Thanks.?
Yes, you will have to pay taxes. You can take the money lump sum and pay the taxes this year, or you can roll it over into an inherited IRA and pay the taxes as the money is distributed. You will be taxed at your normal marginal tax rate.
Do I have to pay taxes on a Roth IRA that I used as retirement investment?
No. You deposit money from your POST-tax income into a Roth IRA, so it's not taxed upon withdrawal.
What is the difference between after tax 401k contributions and Roth contributions?
The main difference between after-tax 401k contributions and Roth contributions is how they are taxed. After-tax 401k contributions are made with money that has already been taxed, so you won't pay taxes on that money when you withdraw it in retirement. Roth contributions are made with money that has not been taxed yet, so you won't pay taxes on the withdrawals in retirement.
Do you have to pay taxes on money being paid back to your employer?
Depends on what the payback is for...if it for an overpayment of wages that were taxed when mistakenly given to you, you would not pay tax on that.
What is the difference between pre-tax and Roth contributions in retirement savings accounts?
The main difference between pre-tax and Roth contributions in retirement savings accounts is how they are taxed. Pre-tax contributions are made with money that has not been taxed yet, so you will pay taxes on the money when you withdraw it in retirement. Roth contributions are made with money that has already been taxed, so you won't have to pay taxes on the money when you withdraw it in retirement.
What is the difference between pre-tax contributions and Roth contributions when it comes to retirement savings?
The main difference between pre-tax contributions and Roth contributions for retirement savings is how they are taxed. Pre-tax contributions are made with money that has not been taxed yet, so you will pay taxes on the money when you withdraw it in retirement. Roth contributions are made with money that has already been taxed, so you won't have to pay taxes on the money when you withdraw it in retirement.
