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Tax Questions | The Good Tax Guide - Part 2

The Good Tax Guide

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Is it necessary to pay tax on mutual fund dividends and capital gains?

All the dividends you receive from mutual funds should be reported on tax returns. In the case of a mutual fund the dividend will be paid in several ways. So the receiver must show the received dividend amount which is taxable in the tax returns. Failure in doing so will result in tax penalties for [...]

Are Credit Card Rewards Taxable?

Nowadays almost every credit card out there gives you cash back, airline miles, or some other form of rewards. For some people, they may only earn a few dollars a year. Meanwhile big spenders may rake up thousands of dollars annually in cash back. Whether you’re getting $10 or $10,000, is this money taxable? What [...]

Is it possible to deduct losses from declared disaster areas on one’s tax return?

One can deduct taxes in case of casualty losses. But this is applicable for the particular year in which the casualty has occurred. Tax deductions can be obtained for that particular tax year only. But in certain cases like disasters which have got approval from higher authorities like one from the president of United States, [...]

Is it necessary to pay tax on advance commissions?

If a person receives advance commission then he must include the commission amount while calculating the tax. In other words it is a taxable income. In most of the cases, agents are given advance commissions even before the customer pays the premium amount. Such advance payments should be reported. If any repayment of advance commission [...]