A Brief History of the Income Tax in America
By: Bill Potter | Posted: 17th December 2010
As you search for income tax repairer related information or other information about income tax tables or Connecticut income tax rate, take your time to view the below article. It will provide you with a really refreshing insight into the income tax preparer information that you need. After going through it, you will also be better informed about information in some way related to income tax repairer, such as FICA tax or even income tax rate tables.
In a Chapter 13 Bankruptcy, income taxes are treated as priority debts; meaning that they must be paid before any other debts, and like all priority debts, they must be paid in full through the chapter 13 plan. However in order for an income tax to be considered priority the tax must meet only the 3 year rule and the 240 day rule. If the bankruptcy debtor has any tax debts that fall outside these two rules; that debt is considered a general unsecured debt and the tax debt will be treated the same as the debtor's other unsecured debts and thus be discharged. However, if the bankruptcy debtor does not satisfy these two rules, then the tax debt is considered a priority debt and it must be repaid in full through the Chapter 13 Plan. If the debtor cannot repay 100% of their priority debt through the Chapter 13 bankruptcy, they will have to convert their debt to a Chapter 7 bankruptcy.
The second step in your income tax preparation process is calculating the amount of deductions that you can apply to your total income. There are two basic categories of deductions to consider Itemized and standard deductions and Adjustments and exemptions. The next stage of your income tax preparation is to subtract your deductions from your total income to calculate your taxable income and look up your taxable income in the table that is supplied with the tax form. This gives you the amount of tax that you need to pay. The final stage of your income tax preparation is to subtract your tax payments, such as employer withholdings, and credits. After you have finished your income tax preparation you will know if your payments and credits exceed the tax required or not.
The basic idea at the core of the negative income tax rate system was a flat tax with a twist. The twist gets a bit complicated, but it involves tax deductions and negative income. A flat tax rate of say twenty five percent would be established on all income earned. You would then be able to take certain deductions against the tax for things like dependents [kids]. If your deductions totaled more than the total income you earned during the year, the government would then owe you all the taxes you paid in during the year and a percentage of your "negative income". At this point, an example will probably help.
You might be thinking, what's the point of all this and how is this going to benefit you? Well If you have tax deductible expenses such as interest on an investment property, margin loan, land rates, water charges, property management expenses etc. then this will be useful for you. What usually happen is that you get a tax refund at the end of the financial year because your employer has withheld too much tax for the tax man (simply because your employer doesn't know that you have investment properties or other tax deductible expenses).
In 1981, the Economy Recovery Act became law and contained some of the biggest tax cuts of modern American history. However, just a year later, Congress passed the Tax Equity and Fiscal Responsibility Act, which raised the federal unemployment base wage and the FUTA tax rate. The act also setup new excise taxes on airports, airways, telephones and cigarettes. Finally, the act also reduced the limit on tax-free contributions to defined-contribution pension plans by $15,475, and reduced limits on benefits from a defined-benefit plan from $136,425 to $90,000.
Once the person is hired, he has to fill out his tax forms, especially the W-4 form, which lists down his salary information, and number of children or dependents. This is then given to the employer, so that he would know how much he would need to take away from his employee's paycheck for the income tax.
You have to file a revised return of income when you think that you forgot or did not file the correct documents about your investments. A Revised Return of Income request needs to be filed using Form-30. The Income tax department of India has recently taken an initiative where we can check our tax return status from the internet. We just need to browse governments website and view every thing related to our tax information. Using an online service, Income tax returns are filed easily and refunds can be processed swiftly.About the Author
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Tags: insight, chapter 13 bankruptcy, chapter 7 bankruptcy, debtor, unsecured debt, taxable income, unsecured debts, income taxes, income tax rate, tax debt, tax payments, tax form, income tax preparation, tax debts