Go to the IRS gov website and use the search box for Five Facts about the Foreign Earned Income Exclusion
If you are living and working abroad you may be entitled to the Foreign Earned Income Exclusion. Here are five important facts from the IRS about the exclusion:
For more information about the Foreign Earned Income Exclusion see Publication 54, Tax Guide for U.S. Citizens and Resident Aliens Abroad and the instructions for Form 2555 or Form 2555-EZ. Forms and publications are available aor by calling 800-TAX-FORM (800-829-3676).
Tax is an expense on financial statements. However, income tax is an expense of the year in which the income was earned, not the year the tax is paid. For instance, income tax paid in 2013 for income earned in 2012 is an expense for 2012. You do not deduct as a 2013 expense the income tax paid in 2013 for earnings in 2012.
When you have earned income but will get paid in the future rather than upon earning it.
Earned income is money you get from working. When you have a job, you're paid a salary--usually in a paycheck you get every week or every two weeks.
The best-paid veterinarians earned $161,070, while the lowest-paid earned $52,470.
alot of money
Disability Income is taxable if your employer paid the premiums for the Disability Insurance or if you paid it through a pretax plan. The best way to know if you have to file the income is if you receive a Tax form such as a 1099 or a W-2 form showing the amount then you will have to file this as income. Disability income is not earned income for the purposed of Earned Income Credit and such.
Technically, yes. All income earned must have federal income taxes paid. State income taxes may also be owed. Fortunately, a minor's income tax rate is usually 15%.
Unless you paid federal and state taxes you cannot get a refund. Many people make the mistake of thinking they can file taxes simply to get the earned income credit. They are wrong. It is called the earned income credit because they earned an income. So unless you worked at some point over the prior year you cannot get the earned income credit. And unless you paid taxes in then you have nothing to file or claim.
Yes it is possible that the payer of the interest income would be required to withhold some taxes from the source of the interest income that is being paid to a taxpayer.
No. Social Security (FICA) is paid on earned income.
Medicare tax is paid on earned income.
No because Illinois will want some state income taxes paid on the income that was earned in Illinois.