Who has to pay taxes?
Are you wondering who has to pay taxes? Do you know if you must pay taxes? Who must pay income taxes? Are there people who don't pay income taxes? Are you among those who have to pay tax?
If you are wondering who has to pay taxes, more to the point, who must pay federal income tax, then this section is for you. There are plenty of people who pay zero taxes. There are lawyers representing those who don't pay taxes. So, who has to pay taxes exactly?
Who has to pay federal income taxes?
The tax laws, according to the IRS, say that if you carry on a trade or business, you will have to pay self employment tax on your self employment income. Employees must also pay taxes. Basically, anyone with any income must pay taxes.
However, if you are able to make enough tax deductions, then effectively, you are paying zero taxes. Many self employed business owners take advantage of small business tax deductions and are able to pay zero taxes by making tax deductions and claiming tax credits.
What is a trade or business?
A trade or business is usually an activity that is carried out in good faith to make a profit. In reality, the trade or business does not really have to make a profit. If the aim is to make a profit and you are making an effort to improve your business to make profits, then you have a business. Your business activities must be regular as opposed to one time off. Your aim is to make more income.