Tax Evasion v/s Tax Avoidance: What is the difference?
Tax avoidance is a method of reducing tax liability within the legal boundaries by exploiting loopholes in the tax laws. Tax Evasion refers to the illegal act of avoiding paying taxes by means of deception or concealment.
8 Essential Tax Planning Tips
Your tax bracket is the range of income that is subject to a specific tax rate. Good tax planning will help you in making smart financial decisions.
Bonus Tax Rate: How are They Taxed and Who Pays?
The bonus comes under the category of ‘supplemental wages’ by the IRS which also includes things like severance and commission. This is where confusion sets in because the IRS confuses bonuses with severance and commission.
Winning a Game Show: How Much Tax do You Pay From Your Prize
Winning at least $600 is likely to result in a 1099-MISC tax form being sent by the awarding entity to both the winner and the IRS. If no form is received, the winner is still obligated to report the winnings value.
Your Guide to Gift Tax Rates in 2023
A gift tax is a federal excise tax imposed on an individual who gives money or property to another person without receiving equal value in return. It is imposed on a person who gives money or property to someone other than a spouse or dependent.