Taxes Q A Understanding What Is And Is Not Taxable
Below is a MRR and PLR article in category Finance -> subcategory Taxes.
Taxes Q&A: Understanding What Is and Isn’t Taxable
Is Social Security Retirement Income Taxable?
Social Security retirement benefits may be taxable depending on your total income and filing status. According to federal law, individuals with annual Social Security income over $25,000 are subject to taxes. For married couples, the threshold is $32,000. If Social Security is your only source of income, it is typically not taxable, and you may not need to file a federal income tax return.
Are Other Pension Payments Taxable?
Like Social Security, other pension payments can be taxable, based on income and marital status. If these payments are your sole income, they might be tax-free. For more details, consult the Instruction Booklet from the Internal Revenue Service (IRS).
Are Tips Taxable?
Tips are generally not taxable if they are not related to a taxable sale. For example, tips given to hotel staff for luggage handling or room cleaning are not taxable. However, tips given in connection with a taxable sale, such as those added to restaurant bills, are taxable. Mandatory tips, like service charges listed on a menu, are also taxable.
Is Child Support Taxable?
Child support is not taxable. It is neither deductible by the payer nor taxable to the recipient. According to IRS Topic 422, child support payments are excluded from taxable income and do not need to be reported on a tax return.
Are Gifts Taxable?
Gift taxes depend on the amount given. For example, a cash gift of $11,000 may incur a tax for the giver. However, specific laws allow certain amounts to be given without tax consequences. Gifts to charities and raffle winners may also incur taxes depending on the gift amount.
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Keywords: taxes, income tax, state tax, business taxes, tax preparation, IRS, TurboTax, tax software
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