Filing separately as a married couple in New York can seem like a straightforward option, but it carries specific consequences that can significantly impact your overall tax liability and financial situation. While there is no explicit penalty for choosing the “Married Filing Separately” status, this choice often results in higher taxes compared to filing jointly … Read more
The question “Is FICA the Same as Federal Income Tax?” represents a common source of confusion among American taxpayers, as both are mandatory deductions from paychecks but serve entirely different purposes in the U.S. tax system. The Federal Insurance Contributions Act (FICA) tax, which encompasses Social Security and Medicare taxes, operates as a payroll tax … Read more
The question of whether a Roth conversion counts as an RMD is a common one among retirees navigating their retirement accounts. The answer is straightforward: a Roth conversion does not count as an RMD. According to IRS rules, RMDs must be withdrawn before any funds from a traditional IRA or other tax-deferred retirement accounts can … Read more
The subject of federal income tax withholding for clergy is both complex and unique due to the dual tax status clergy members hold. While most clergy are considered employees for federal income tax purposes, they are treated as self-employed for Social Security and Medicare taxes under the Self-Employment Contributions Act (SECA). This means that churches … Read more
When it comes to managing finances as a student, understanding how on-campus jobs are taxed is crucial for navigating the complexities of income tax obligations. Many students take on part-time employment while pursuing their education, often working in various roles within their university or college, such as teaching assistants, research assistants, or positions in dining … Read more
When it comes to navigating the complexities of Oregon’s tax system, two significant provisions stand out: the “Oregon credit for taxes paid to another state” and the “Oregon Kicker” tax credit. The Oregon Kicker is a unique tax refund mechanism that returns surplus state revenue to taxpayers when actual income exceeds projections by more than … Read more
As streaming services have surged in popularity, many individuals and businesses are left wondering, “Can I claim streaming services on tax?” This question is particularly relevant for professionals who utilize these platforms for work-related purposes, such as content creators, educators, and media professionals. The answer is nuanced and depends on several factors, including the nature … Read more
Requesting an abatement can be an essential step for taxpayers who find themselves facing penalties or tax liabilities that feel unfair. If you’ve ever felt overwhelmed by tax penalties or unexpected fees, you’re not alone. This article aims to guide you through the often confusing process of requesting an abatement, whether it’s for IRS penalties … Read more
When it comes to filing taxes, many residents of New York City are unaware of the various income subtractions that could significantly reduce their taxable income, thereby lowering the amount of taxes they owe. New York City, with its high cost of living, offers specific tax benefits designed to ease the financial burden on its … Read more
The question of whether kids can be paid independently in the USA is a multifaceted issue that involves understanding child labor laws, tax implications, and parental rights. In the United States, minors are allowed to work and earn money, but there are strict regulations in place to protect their welfare and ensure that their education … Read more