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Accounting Periods for U.S. Corporations
A U.S. corporation must figure its taxable income on the basis of a tax year. A tax year is an annual accounting period for keeping records and reporting income and expenses. Generally, a corporation can use either a calendar year or a fiscal year as its tax year. A calendar year is 12 consecutive months beginning on January 1st and ending on December 31st.
Estimated Tax for U.S. Corporations
Generally, a corporation must make estimated tax payments if it meet one of the following conditions:1. Corporations must generally make estimated tax payments if they expect their estimated tax (income tax less credits) to be $500 or more. 2. S corporations must make estimated tax payments if the total of the tax on built-in gains, the excess net passive income tax, and the investment credit recapture tax, is $500 or more.
U.S. Individual Income Tax - Part 4 How to Calculate Your Taxable Income?
The IRS requires you to report all your income that you have received during the tax year. This includes your wages, taxable interest, ordinary dividends, taxable IRA distribution, taxable pensions and annuities, taxable social security benefits, capital gain (attach Schedule D) and other income (attach Schedule 1). Your total gross income is determined by adding up all types of income.
U.S. Federal Estate Tax
U.S. Federal estate tax may apply to the decedent's taxable estate at death and not just on the share received by a particular beneficiary. The taxable estate is the gross estate less allowable deductions.The gross estate includes the value of all property the decedent owns partially or in full at the time of death (including real property outside the United States).
Business-Friendly State--Wyoming
Wyoming is a doubly landlocked state in the western United States. The state is the 10th largest by area, the least populous, and the second most sparsely populated state in the country. The tax climate in the state is incredibly business-friendly. Wyoming does not have a corporate income tax, nor does it have an individual income tax or gross receipts tax.
U.S. Individual Income Tax - Part 3 How to Read and Understand Form W-2?
When you prepare your U.S. individual income tax return (Form 1040), the first line you should fill out is “Wages, salaries, tips, etc.”. And it requires you to attach the Form W-2. What is form W-2 and how to read and understand the W-2? This article will give a brief guideline.Form W-2 is the annual "Wage and Tax Statement" that reports your taxable income from an employer to you and to the IRS.
U.S. Individual Income Tax -- Part 2 Whom May I Claim as a Dependent?
Certain tax benefits, such as an advantageous filing status or certain tax credits on your U.S. individual income tax return, require either a qualifying child or qualifying relative. This article will introduce you to dependency definitions and related requirements.
U.S. Self-Employment Tax
Self-employment tax is a tax consisting of Social Security and Medicare taxes primarily for individuals who work for themselves. It is similar to the Social Security and Medicare taxes withheld from the pay of most wage earners.The self-employment tax rate is 15.3%. The rate consists of two parts: 12.4% for social security (old-age, survivors, and disability insurance) and 2.9% for Medicare (hospital insurance).
U.S. Federal Earned Income Tax Credit (EITC) Introduction
The Earned Income Tax Credit, EITC or EIC, is a benefit for working people with low to moderate income. To qualify, you must meet certain requirements and file a tax return, even if you do not owe any tax or are not required to file. EITC reduces the amount of tax you owe and may give you a refund.Those who qualify for EITC and claim the credits could pay less tax or even get a tax refund.
US Gift Tax
The gift tax applies to lifetime transfers of property from one person (the donor) to another person (the donee). A gift is made if tangible or intangible property (including money), the use of property, or the right to receive income from property is given without expecting to receive something of at least equal value in return. If something is sold for less than its full value