Income That Is NOT Taxable
Below are some more examples of propaganda that is fed to the masses, which is all designed to promote your “compliance” with their non-existent law.
For example they would have you believe the following are Types of income that are not subject to Federal tax may include the following:
- Gifts and inheritances
- Life insurance proceeds
- Child support
- Certain Veteran’s benefits
- Insurance reimbursements for medical expenses not previously deducted
- Some welfare payments
- Compensatory damages for personal physical injury or illness
- Workers’ compensation
- Some qualified pension distributions for Public Safety Officers
For more information, please see IRS Publication 525, Taxable and Nontaxable Income.
Self-employment tax (also called “SE tax”) is a Social Security and Medicare tax aimed mainly at individuals who are self-employed. The SE tax payments you make go towards your coverage under the federal Social Security system. Social Security coverage essentially provides retirement benefits, disability benefits, health care benefits (Medicare), and survivor benefits. In general, you must pay Self-Employment Tax and file “Schedule SE” (on Form 1040) if either of the following applies:
- Your net earnings from self-employment income were $400 or more
- You work for a qualified church-controlled organization (other than as a minister or member of a religious order) that has elected an exemption from Social Security and Medicare taxes. In this case, you are subject to SE Tax if you earn $108.28 or more in wages from the church/organization.
To pay self-employment tax, you must have a Social Security number (SSN) or an individual taxpayer identification number (ITIN).
Note that there are special rules for fishing crew members, notary public employees, aliens, state or local government employees, foreign government employees, and international organization employees.
You should also note that whenever SE tax is mentioned, it generally only refers to Social Security and Medicare taxes, and does not include any other taxes that self-employed individuals may be subject to. Keep in mind that other information may be required for your particular type of business.
Don’t believe the Hype
Most of America has absolutely no idea whatsoever whether they legally and lawfully owe federal income tax or not. That is by design not by mistake. Then “Powers that Be” have done a marvelous job brainwashing the public into compliance.
We are all operating in the dark when it comes to this subject. We pay federal income taxes because we saw our parents pay and we believe we owe it too. It is a subtle form of indoctrination and it has worked great for generations.
That time has come and gone however.
If you are tired of being taken advantage of and want to stop it You need to consult with tax professionals to insure you get the biggest refund owed to you. To begin you can send us an email at firstname.lastname@example.org and visit our website http://endtaxes4ever.com/ for more information.