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1

Yes, in the circumstances you describe, you would end up paying less tax per month in the first year than in future years. The allowance is allocated annually. However there is also National Insurance which is calculated weekly or monthly, so you wouldn't get any advantage for that.


0

Many countries have employers report their employees' salaries and withhold some money for income tax purposes (it's called “pay as you earn”, “withholding taxes” or taxing “at the source”). Often the system is designed in such a way that most people actually pay too much and can get money back at the end of the year. In that case, the salary you receive can ...


1

According to Wikipedia, this started out as a way to fund health insurance and unemployment insurance, and has gradually increased its scope to cover pensions. At least in part, what you can claim back from these systems is connected to what you paid into them - you can't just work one week and then claim 51 weeks of unemployment benefit, or a full pension - ...


0

Just a real-world counterpoint, in the UK, we negotiate the "before tax" salary as some number of pounds per period of time. Out of this amount, income tax is typically deducted and this calculation is quoted on the payslip. (Like most of the rest of the world.) However, there's another grade of income tax called "Employer’s National Insurance". This is ...


1

In Canada, the majority of your taxes are remitted by the employer on your behalf after the employer deducts the calculated amount from your pay. Then when you file your income tax return you pay (or get reimbursed) the difference stemming from your particular social situation. Note that this is optional. The employer has to pay its own part of some ...


5

If a country had a genuine completely flat income tax system, then it wouldn't matter who paid the tax since it doesn't depend on the employee's other income. Since not many countries run this, it doesn't really make sense for the employee to "take the burden" of the tax, as opposed to merely doing the administration and paying the (probable) amount of tax ...


10

In Singapore, this is sufficiently common that the Singapore IRS has a page on their website dedicated to informing employers of how to properly pay this under Responsibilites of an Employer. Specifically, tax paid by employer is taxable income for the employee (as it's really the employee's responsibility), so they must pay tax for that tax. A ...


4

Everyone pays their personal income tax with funds from their employer; some of it through withholding, and the rest through the balance due at the time of filing. All that is happening here is that the company is calculating your personal tax return for you, and fiddling retroactively with the gross salary to yield a specific after-tax salary. One ...


1

Log in to kotak securities demat account. THere, you can find statement of your sell purchase and dividend received.


0

I would talk to your HMRC tax office they do have guidance on this issue here http://www.hmrc.gov.uk/working/intro/employed-selfemployed.htm


0

I will have to pay the tax to Indian-Govt. on ... Yes that is right, as the income is 2.4 lacs, there is no tax. Please note that the exact date when you go to US matters. For the financial year April 2014 to March 2015, if you spend less than 182 you would still be resident of India. The income you earn in US will also be taxable in India. There is ...


2

You were told wrong. Lifetime Learning Credit is not a refundable credit. I.e.: it reduces your tax liability, but you cannot get refund if it exceeds your tax liability. See the IRS pub 970 for more information: A tax credit reduces the amount of income tax you may have to pay. Unlike a deduction, which reduces the amount of income subject to tax, ...


5

To quote from the HMRC website: If you're employed you pay Class 1 National Insurance contributions. The rates are: if you earn more than £153 a week and up to £805 a week, you pay 12% of the amount you earn between £153 and £805 if you earn more than £805 a week, you also pay 2% of all your earnings over £805 You pay a lower rate if ...


0

The transcript should appear shortly after your tax return was received and accepted by the IRS. You should check on the IRS page, I wrote about it here.


0

In general, all income is taxable, regardless of the source. If you living in the U.S. -- I don't think you said anywhere where you live -- then if you are donating this money to charity, you would have to declare the income, and then declare a deduction for the charitable contribution. At that point the two would cancel out and the net result is that you ...


4

It's income. It's almost certainly subject to income tax. As miscellaneous income, if nothing else. (That's what hobby income usually falls under.) If you kept careful records of the cost of developing the app, you might be able to offset those against the income... again, as with hobby income.


2

If you are a permanent resident (and it wasn't taken away or abandoned), then you are a resident alien for U.S. tax purposes. (One of the two tests for being a resident alien is the "green card test".) Being a resident alien means all your worldwide income is subject to U.S. taxes, regardless of where you live or work. That doesn't necessarily mean you need ...


0

I know a guy on a much higher rate than me, about £500 per day, and he claims to pay around 18% tax which has me bewildered Your acquaintance may be using a tax efficient, or "marketed avoidance" product identical or similar to those required to be registered or declared under DOTAS legislation in the UK. If this is the case then no, your accountant ...


4

Where you earn your money makes no difference to the IRS. Citizen/permanent resident means you pay income tax. To make matters worse given your situation it's virtually certain you have unreported foreign bank accounts--something that's also an important issue.


1

Another way to look at it is that deductibles are intended as incentives or subsidies to particular industries (in this case the healthcare industry). Guaranteeing a decent standard of living and making sure everybody can meet the costs of “necessities” can be achieved much more easily by a low tax rate on the first XXX$ of income and/or generic welfare ...


0

You could debate the "why"s of tax policy endlessly. There are lots of things in tax law that I think are bad ideas, and probably a few here and there that I think are good ideas. I am well aware that there are things that I think are good ideas that others think are bad ideas and vice versa. To your specific point: I suppose you could say that having a ...


2

The answer is simple. You can generally claim a deduction for an expense if that expense was used to derive an income. Of course social policy sometimes gets in the way and allows for deductions where they usually wouldn't be allowed. Your rent is not tax deductible because this expense is not used to derive your income. If however you were working from ...



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