What exactly is the income difference between those who are college graduates and those who only have a high school diploma?
I'm talking about the whole entire work force in America. What is the difference in income between those in the work force who have college degrees than those with only a high school diploma?
I am a US Citizens living abroad. I am in the process of filing tax return for 2008 for foreign earned income based on IRS' publication 54. Our earned income has already been taxed once by the country we live in.
I see that there are two ways to avoid double taxation on your income -the foreign earned income exclusion and the foreign tax credit.
Can somebody please explain the difference between the two and point out advantages to use one over another?
I am a US Citizens living abroad. I am in the process of filing tax return for 2008 for foreign earned income based on IRS' publication 54. Our earned income has already been taxed once by the country we live in.
I see that there are two ways to avoid double taxation on your income -the foreign earned income exclusion and the foreign tax credit.
Can somebody please explain the difference between the two and point out advantages to use one over another?
What is the difference between an income tax and a payroll tax?
A. Income taxes reduce the demand for harmful goods while payroll taxes don't affect this demand.
B. Income taxes are collected based on income while payroll taxes are collected based on wealth.
C. Income taxes are used for a wide variety of government activities while payroll taxes pay for specific programs.
D. Income taxes increase the purchasing power of the government while payroll taxes increase the purchasing power of workers.
My friend is a professional snowboarder who set up an S Corp last year at his accountant's insistence. He has parted ways with the accountant and wants to file on his own, but on the "Income tax summary" he received from his accountant last year, there is "Business income" and "Rent, royalty, partnership, SCorp, Trust" income and he has amounts in both areas. My question is how the accounant determined which amounts belonged in which areas–his income comes directly from his sponsors and he gets 1099 forms from them, and the only other income he has is from contest wins. He is the only owner/employee of the SCorp and does not have any complex accounting issues. I pretty much just want to know if income needs to be separated (onto Schedules C and E) and how this is done.
Thanks!
