The personal income tax is a tax that is intended to make those with higher incomes pay the amount of tax that they should to even out the tax liability for everyone else. It also tries to exempt the poor completely from having to pay personal income tax.
How you claim your exemptions will depend on how you file your return. For most individuals who use the 1040EZ form this will be entered on line 5.
If you give away a lot of money, then you could be responsible for paying federal gift tax. Currently you can give away around $13,000.00 to any amount of people without having to pay federal gift tax.You also have a one million dollar lifetime limit on gifts.
If you plan on giving away more than that, then you may want to do some pre-planning so neither you nor the recipients of your gifts owe taxes on them. The gift tax was created to make it more difficult for taxpayers to avoid paying estate tax.
Do You Qualify For Child Care Tax Credit Or Dependent Care Credit? You can reduce your tax debt if you qualify for the child care tax credit.
The federal government recognizes that caring for children or a dependent can be a financial burden, and may allow you a tax credit on your income tax debt.
Form 940 is used to report your annual Federal Unemployment Tax Act (FUTA) tax. The purpose of the FUTA tax is to provide funds for paying unemployment compensation to workers who have lost their jobs. Employers pay FUTA tax and do not deduct this tax from their employee’s wages.
Do I Have to File Form 940?
You may be wondering if you have to file this tax form or not.
If you answer yes to these questions, then you have to file tax Form 940.
1. In a calendar quarter, did you pay wages of $1,500 or more to employees?
2. During 20 or more different weeks, did you have one or more employees working for you at least some part of the day?
Different Situations For Filing IRS Tax Form 940
