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Taxes
- What are taxes?
Taxes are financial obligations imposed on individuals and businesses by government
entities
- Government entities use that money
To build infrastructure
Pay for national defense
Provide social welfare
Other public services
Tax Systems
- Federal Income Tax
- State Income Tax
- Payroll Taxes
- Property Taxes
- Sales Taxes
Gross Income
- What’s iluded?
Wages and salaries
Income from self-employment, partnership, etc.
Interests, dividends, capital gains, rents etc.
Scholarships and grants in excess of education costs
Unemployment benefits
Pensions and tax deferred retirement plan distributions
Up to 50% of Social Security income
- What’s ot iluded?
Life insurance death benefits
Municipal bond income
Roth IRA distributions after age 59 ½
For AGI Deductions
- These deductions are specific expenses are allowed by Congress to 1) support small business
and 2) encourage savings
- Allo usiess dedutios for…
Contract labor
Business travel
Health insurance premiums
50% of meals and entertainment
- Starting a small business even one that is not very profitable can save you thousands in
taxes!
- These deductions are specific expenses are allowed by Congress to 1) support small business
and 2) encourage savings
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