When it comes to taxes, we often think mainly in terms of federal taxes. However, most of us pay quite a bit when it comes to state taxes as well. And, indeed, many states collect various taxes in order to fund certain state-provided services.
A few years ago, one of the clients for my business was a company in Taiwan. My pay came from this Taiwanese company, and was considered foreign income. I had to pay taxes in Taiwan, and since the income amounted to less than $97,600, I didn’t need to pay US taxes on the income as well. I even received a tax deduction for the tax already paid to the Taiwanese government.
One of the big issues facing America today is the concern over tax revenue and how it relates to needed income to keep things running. Many have decried the ways in which major corporations do their best to legally reduce the taxes they owe by citing foreign profits, but there is another loophole that allows companies to pay less in US taxes while pulling in profits.
Not too long ago, the Government Accountability Office released a report indicating that there are some big businesses getting a pass from the IRS. According to the report, certain big partnerships have been audited at a very low rate.
As part of the “fun” that comes with packing up and moving across the country, my family and I are going to have to sell our house.
The last few weeks have been rather busy for me. Among other things (and there have been a lot of things), my husband landed a job on the other side of the country. So we’re packing up and moving out.
Americans like to complain that they pay too much in taxes. However, that might not necessarily be the case. Recently, the Organisation for Economic Co-operation and Development (OECD) took a look at the tax burden on single workers in 12 different countries. Turns out things in the United States really aren’t so bad, when compared with some of its peers.
The point of tax planning is to reduce your tax liability, by as much as possible, within what the law allows. A lot of people like to talk in terms of loopholes, but the reality is that our tax code is complex, and that means that there is a lot of room for tax planning, and reducing what you owe.
Not too long ago, the IRS began publicizing its Taxpayer Bill of Rights. The point of this move by the IRS is to let taxpayers know that they have rights when it comes to dealing with the IRS and concerns about their taxes, especially if the IRS is performing an audit or if there is some other issue with your tax situation.
It’s a common refrain: I wish my taxes didn’t pay for that!
Many of us look at the way the government spends taxpayer dollars, and wish that it went elsewhere. Of course, it’s impossible to please everyone. We live in a country with millions of citizens, and there are multiple opinions about how each dollar that the government collects should be used.
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