2015 Tax Year, our answers for some of the most asked questions
Some of the basics of Income Tax facts, if known, can help you to take a confident first step and make your financial lives easier. Understanding state tax laws is important when preparing your tax returns. Some questions which are frequently asked by the filers are discussed here to ease your responsibility.
Maybe you often wonder about the issue that whether cancellation of a debt would be considered as an income during the year when it happened. A waiver of certain debt may be allowed by your credit card issuer or in case of a student loan or when your house is foreclosed, or there could be many other numerous situations to name. Since you were supposed to pay that debt out of your income or have already set that debt amount and paid from some previous year's income, when such debt is waived by your creditor, that saving of expenses would be again construed as an income for that year and you will have the liability to pay tax on that amount forgone. One exception to this principle is relief under Mortgage Debt Relief Act.
A person has to pay tax on his 'earned income' during a financial year, which is again subject for 'earned income tax credit'. 'Earned incomes' are total income from active participation in a trade, business (including speculation business), or profession. Some examples of earned incomes are salary, business income, bonus, strike or disability benefits received prior to minimum retirement age, allowances, etc. It is the income which a person receives for the work he has done (thus, excludes incomes received in advance). 'Earned income tax credit' is a refundable tax credit allowed to low- to moderate-income working individuals and couples, particularly those with children.
Another common question is 'who counts as a dependent.' A person would be considered as your 'dependent' if he/ she has lived with you for a whole financial year and has received over half of his/ her support from you, but up to certain limits and under certain satisfying conditions. A dependent may be a qualifying child or a qualifying relative. A taxpayers can reduce own taxable income by claiming deductions for the amount spent on the dependent within certain limits as mentioned under the law.
In Haiti, taxes for corporate and individual incomes are taxed according to a progressive scale ranging from 10% to 30% (35% for corporate). The higher the income, the higher the tax rate as per your income slabs. First income up to 20,000 Gourdes is exempted from the tax; next income up to 100,000 Gourdes is taxed at the rate of 10%; 15% bracket covers next income up to 250,000 Gourdes. Similarly, 25% band covers next 750,000 Gourdes and income above that level is taxed at the rate of 30%.
Should I use the standard mileage deduction or actual expenses to claim auto expenses? If I claim the standard deduction, can I deduct charitable donations?
Taks pou ane 2015, repons nou pou kèk nan kesyon ke yoplis mande
Èske mwen ta dwe itilize estanda kantite mil dediksyon oswa depans aktyèl nan reklamasyon depans oto? Si m 'fè reklamasyon estanda dediksyon, eske mwen ka dedwi donasyon charitab?
All Comments (1)
My question is that: does anyone who work in the US have to file an Income Tax return?.
My specific situation is that. I am a resident and going to College.
I did not make a lot of money while working in 2015. is it to my advantage to file an income tax return under my situation?
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