{"id":26084,"date":"2019-08-06T08:00:48","date_gmt":"2019-08-06T12:00:48","guid":{"rendered":"https:\/\/www.escapeartist.com\/?p=26084"},"modified":"2020-09-16T09:36:55","modified_gmt":"2020-09-16T14:36:55","slug":"the-american-tax-checklist-ticking-off-all-the-types-of-taxes","status":"publish","type":"post","link":"https:\/\/www.escapeartist.com\/blog\/the-american-tax-checklist-ticking-off-all-the-types-of-taxes\/","title":{"rendered":"The American Tax Checklist: Ticking Off all the Types of Taxes"},"content":{"rendered":"

The United States Tax Code is a comprehensive collection of tax prescriptions that outline all the possible ways in which the tax applies to any individual. Failure to comply with the Tax Code rarely ever means that you\u2019ll be sent to jail, however, you could incur penalties for non-compliance.\u00a0<\/span><\/p>\n

The IRS can charge penalties amounting up to 25% of all taxes<\/span><\/a> that you haven\u2019t paid before. A quarter of your overall incomes and wealth can potentially be seized as part of your payment. To put things in perspective, this amounts to a total of $25,000 for every $100,000 missed in taxes. <\/span>Considering that the rate itself is between 10%-37%,<\/span><\/a> the cumulative is going to be far less if you just filed your taxes. For this reason, tax evasion or accidental non-compliance costs you far more than paying taxes in the first place.<\/span><\/p>\n

As someone looking to maintain your long-term financial well being, it makes sense to look for ways that you can reduce your tax burdens. The first step in all of this is to <\/span>know the tax system<\/span><\/a> and beginning to file your taxes that you can later file a return for. Once your incomes are reported in the system, you can then use the loopholes present to take advantage.\u00a0<\/span><\/p>\n

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The United States Tax System<\/b><\/h2>\n

The tax system in the United States fundamentally applies to a wide range of incomes earned by individuals. There are further sub-categories that describe the ways in which tax applies to your various financial resources.\u00a0<\/span><\/p>\n

Fortunately, the Internal Revenue Service releases <\/span>tax guides<\/span><\/a> that can help you decide what taxes you should expect to pay and the returns on the taxable income you can get.\u00a0<\/span><\/p>\n

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Taxes on Individuals<\/b><\/h3>\n

Individual taxes usually comprise of taxes that you have to pay on the incomes coming in from different sources. This includes real estate, shareholdings, wages, capital gains and much more.\u00a0<\/span><\/p>\n

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Income Taxes<\/b><\/h4>\n

The real challenge with your income taxes really comes from what qualifies as taxable income for you. This includes a broad range of incomes that may include health insurance, travel reimbursements and many similar payments. Your taxable income includes:<\/span><\/p>\n

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1. Wages, including:\u00a0<\/b><\/h5>\n