Even though taxes are an important issues all of us have to face once we reach adulthood and get a job for the first time, this very crucial topic is seldom explained to us in detail. Following, we would like to present you with a list we have compiled of top 5 things you should know about taxes.
If you still have troubles understanding all the layers of our tax regimen, check the list we have prepared for you. Let’s take a look at the countdown.
No. 5: Anyone making an income has to pay taxes
Once you start making an income, whether through a job or through interests and savings account, you have to start filling your taxes, regardless of your age. However, the income has to surpass a certain amount before you are required to file. Nonetheless, make sure you check with your local legislation, even if the only way you’re currently making money is through interest on your account.
No. 4: The New Mexico tax exemption
New Mexico residents rejoice, as you’re not going to have to pay taxes for the rest of your lives. Well, if you get to over 100 years old that is. According to the local law, no person older than 100 is required to pay taxes. We guess that if you make it that long, you’ve pretty much paid taxes to last you a lifetime.
No. 3: Health insurance premiums can be deducted
It is surprising how many people don’t actually know they can deduct their healthcare premiums; albeit, not in all cases. You’ll most likely see a benefit with medical expenses that surpass 7.5% of the adjusted gross income, but it is still a deduction worth taking into account. If you’re not covered by an employer’s health care plan, you can deduct your health insurance premiums in full.
No. 2: A series of odd taxes
Needless to say, none of us is particularly overjoyed come tax season. But the truth is that, once you hear about some of US’ strangest taxes imposed, you’ll be glad you’re not affected by them. For example, did you know that nearly half of the states in the union have a thing called the Jock Tax, through which professional athletes from the visiting them are required to pay anytime they play a game away? Other bizarre taxes include Alabama’s playing card tax, which charges 10 cents from anyone buying a deck of cards in the state or Chicago’s higher tax on fountain sodas as opposed to canned or bottled pops.
No. 1: Spouse liability and split refunds
If your significant other has any tax liabilities at the time of your wedding, marrying him or her will not transfer those liabilities unto you, whether it’s overdue taxes, student loans, or child support. However, you might have issues claiming your refund if you file your taxes jointly, but there’s a way to get out of this: simply ask the IRS for a refund split, where each of the two spouses receives their due refunds separately.
