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Taxes From A To Z (2017): Z Is For Zero Percent Rate
Source:
forbes.com
- Apr 17, 2017
t’s my annual "Taxes from A to Z" series! If you’re wondering whether you can claim wardrobe expenses or whether to deduct a capital loss, you won’t want to miss it.
Z is for Zero Percent Rate.
Words matter and when it comes to tax, words matter a great deal. Sometimes, taxpayers confuse results with rules. Just because the result may be the same doesn't mean that the rule is the same. Consider the zero percent rate.
One of the mistakes that taxpayers make is conflating a zero percent rate with being exempt from tax: it is not the same thing. In some instances, if you are exempt from tax (or a specific kind of tax), you don't have to file a tax return at all. Examples include taxpayers who do not earn enough income during the year to be subject to meet the income requirements for filing a return (read more about whether you need to file in 2017 here).
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Category: General Business
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