Taxes Q A Understanding What Is And Is Not Taxable

Taxes Q&A: Understanding What is​ And is​ Not Taxable
* is​ Social Security retirement income taxable?
Social Security retirement benefits are taxable,​ although it​ depends on​ your total income and civil status .​
Federal law states that an​ individual must pay taxes if​ he/she has annual Social Security retirement income of​ more than $25,​000 .​
If he/she has a​ married status,​ they must pay such taxes if​ the​ income is​ more than $32,​000.
However,​ if​ the​ Social Security retirement benefit is​ the​ recipient’s only source of​ income,​ then it​ is​ rendered to​ be non-taxable and there is​ no need to​ file a​ federal income tax return.
* Are other pension payments (not SS) taxable?
Just like Social Security benefit payments,​ other pension payments are taxable,​ although it​ is​ dependent on​ the​ recipient’s income and marital status .​
If such payment is​ only his source of​ income,​ then it​ may be tax-free .​
Other conditions are also stipulated on​ the​ Instruction Booklet of​ the​ Internal Revenue Services (IRS).
* Are tips taxable?
Tips are not taxable if​ they are given for a​ service not correlated with a​ taxable sale .​
For instance,​ the​ tip that you​ give when your luggage is​ carried or​ your hotel room is​ cleaned is​ not taxable.
Another perfect example is​ the​ tip that you​ leave your waiter after your meal at​ a​ restaurant .​
In these instances,​ tips are not taxable.
However,​ there are taxable tips .​
These are called mandatory tips,​ where it​ is​ given on​ a​ service that is​ associated in​ taxable sale.
An example of​ such a​ tip is​ the​ amount that you​ have added to​ a​ certain meal or​ beverage (such as​ a​ bottomless ice tea which you​ need to​ add a​ certain amount) .​
Such tips are printed in​ the​ restaurant’s menu or​ placed in​ their advertisement,​ if​ any.
* is​ child support taxable?
Child support is​ not taxable .​
This is​ neither deductible by the​ payor nor taxable to​ the​ payee .​
Topic 422 of​ the​ Non-taxable Income determined by the​ Internal Revenue Services (IRS) stipulates that child support payments are not included in​ taxable income .​
Thus,​ it​ is​ not included in​ filing a​ tax return.
* Are gifts taxable?
Gifts are taxable .​
It depends on​ the​ equivalent amount of​ the​ gift to​ be given .​
For instance,​ if​ you​ have given somebody a​ cash gift worth $11,​000.00,​ it​ has an​ equivalent deductible tax charged to​ the​ giver.
However,​ there are also stipulations in​ the​ law that allow you​ to​ give certain amounts,​ whether in​ cash or​ property,​ which do not have gift tax consequences .​
Gifts to​ charities or​ raffle draw winners have a​ corresponding deductible tax depending on​ the​ cash gift that they have received.
Taxes Q A Understanding What Is And Is Not Taxable Taxes Q A Understanding What Is And Is Not Taxable Reviewed by Henda Yesti on July 03, 2018 Rating: 5

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