Last year's intense last minute debate out of Washington focused on an extension of the Social Security tax cut into 2012. Would this year be any more calm? Would 2012 tax laws be locked in place before the end of the tax year? What is going to happen to tax laws in 2013? Long gone are the days when taxes were a simple calculation to ensure there was enough revenue to cover the desired federal programs. Now it seems each section of the code is a political and/or social statement. While our leaders continue to grapple with answers, here are some things to consider to make your situation a little better.
Deductible travel expenses can include expenses incurred in an automobile, when flying, where someone stays during a business trip, and even what someone eats during their business travel. While 100% of the travel expenses are not deductible, a good percentage of them are.
Actual Costs or the Standard Mileage Rate
Automobile expenses include the maintenance costs of the vehicle, the cost of fuel, and the cost of repairs for the travel. Automobile expenses may also be considered by the number of miles that someone travels to complete their job. This is considered a mileage rate per year and will allow a percentage of the costs to be deducted from your taxes.
Meals Deduction While Traveling on Business
Food is also deductible; however only 50% of the money spent can be deducted as a travel expense. It is a good idea to keep your receipts when you are traveling on business, so that you can be sure to include the cost of all meals when you file.
When filing for travel expense deductions, the method you will need to use to file will be dependent on if you are self-employed or if you have an employer. If you are employed by an employer, you will more than likely have to file an itemized deduction on a Schedule A.
If you are self-employed, you may file a deduction against your self-employment income.
In order to get the most deductions that you possibly can, it is important to take the time to learn about what expenses are deductible and which are not. You need to document all money that you spend to do your job so that you can be sure to get all of the deductions that you possibly can.
Inheritance tax liability
An inheritance tax or estate tax is a levy paid by a person who inherits money or property or a tax on the estate (total value of the money and property) of a person who has died. In international tax law, there is a distinction between an estate tax and an inheritance tax: an estate tax is assessed on the assets of the deceased, while an inheritance tax is assessed on the legacies received by the beneficiaries of the estate. However, this distinction is not always respected in the language of tax laws.
Before considering the payroll taxes we need to talk about the basic formula for the Net Pay. From gross pay (the salary paid to the employee) one or more deductions are subtracted, to arrive at Net Pay. Thus the employee's gross pay (pay rate times number of hours worked, including any overtime) minus payroll tax deductions, minus voluntary payroll deductions, is equal to Net Pay. Payroll tax deductions play a critical role and because they are provided by law they are known as Statutory payroll tax deductions.