Therefore, taxpayers must report and claim their Madoff investment losses for New Jersey Gross Income Tax purposes in tax year 2008.
Even though the Daltons took the federal safe harbor treament they determined that they would do better on the New Jersey Gross Income Tax (GIT), if they backed out the fictitious income.
The New Jersey Gross Income Tax Act does not follow federal law regarding carry-forward and carry-back losses and the loss on the 2008 New Jersey individual income tax return can only be netted against gains or income reported in the category Net gains or income from disposition of property.
When it comes to taxation, the paper highlights a "really significant intergenerational unfairness", with retired middle-income households paying 27% of their gross income in tax, compared with 33% for non-retired households with the same income.
Finally, half the medicare tax is deductible against adjusted gross income in computing regular income tax, while none of the NIIT is deductible.
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Since we have an income tax, not a gross receipts tax, you get to deduct your cost of goods sold, if you are selling illegal drugs.
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First, to qualify you typically need 2 years of steady employment with a stable or increasing income, a minimum credit score of 620 with no more than 2 30-day late payments over the last 2 years, no bankruptcies in the last 2 years, no foreclosures in the last 3 years, and a mortgage payment no more than about 30% of your gross pre-tax income.
If you want to compare the tax they pay to their adjusted gross income (the smaller amount that appears on a tax return), it would be closer to 24 percent.
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Washington State has no personal income tax, no corporate income tax (corporations pay on gross receipts only) and relatively low property and sales taxes.
Roth 401(k)s, on the other hand, are funded with after-tax dollars, so there is no reduction in adjusted gross income -- an important figure in determining tax brackets and the deductions and credits individuals can take.
Remember that this budget is based on your gross income, not after- tax income.
That means that you must include in gross income on your federal income tax return the fair market value of goods and services received in exchange for goods or services you provide.
You have 20 years of adjusted gross income and twenty years of total tax.
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Even so, some amount of gross income is given up for the tax savings.
If the expatriate does not file a U.S. income tax return for the year of the sale, the IRS will issue a notice of deficiency to him at his last known address for income tax on the gross sale proceeds.
The losses of a trader in securities, whether from trading losses or expenses, reduce Adjusted Gross Income and do not present alternative minimum tax problems.
Our intention is that the reporting of gross receipts and sales on the 2012 income tax forms will be modeled on the 2010 income tax forms.
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These are already coming to state tax laws: Massachusetts, New Jersey, New York and Rhode Island are among the states where, for high-incomers if not for everyone, the regime is more of a gross-income than a net-income tax.
Maine, on the other hand, has a fairly normal state income tax based on federal adjusted gross income.
After all, the British and U.S. systems tax net income, not gross.
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State tax credits: These credits reduce state taxes but increase federal taxes, because state tax credits are counted as gross income on federal returns.
Like other workers in Dubai, Emirates' employees do not pay income tax, which means that gross salaries can be much lower than at European and American rivals.
Since taxable withdrawals are included in your adjusted gross income, they can raise the percentage of your Social Security that is subject to federal income tax.
The tax rate could very well be a flat tax system of say 20% gross income.
The result: The investor owes U.S. tax on net income, not gross income.
The gross tax gap 71% comes from individual income taxes.
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Farmers and ranchers get an even more generous break: They can offset up to 100% of their adjusted gross income with conservation donations, potentially zeroing out their tax liability for the next 15 years.
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Gross income includes all the income received that is not exempt from tax, but does include Social Security benefits.
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This strategy can also reduce tax when paid, because the tax would be owed on net rather than gross income.
Here, for 2008 (as reported by the IRS and calculated by Forbes) are the average effective individual income tax rates, as a percentage of adjusted gross income, for various income groups.
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