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Who Is Exempt from Paying Income Taxes in Boston?

May 9th, 2023 News & Politics 3 minute read
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Who Is Exempt from Paying Income Taxes in Boston?

Boston, MA - Taxes are a certainty for most individuals and businesses, there are occasions where a person or entity does not need to pay any income tax for the year. While this is generally a small percentage of the population at any given time, there are a few situations where the person may not need to file a tax return at all, or they may find that they do not have any tax liability to the federal government or the state where they live. Before making the choice to not file or pay any income taxes, lawyers should be consulted to ensure that there will not be any negative consequences for doing so. Certain non-citizensSome individuals who live in the United States but are not citizens may not owe the government any taxes. This can depend on if they have any income, what country the income comes from, and tax filing status. Boston tax lawyers can provide more detail regarding how a person’s immigration status and their sources of income can affect their taxes. Legitimate non-profit organizationsThere are certain types of organizations that are not run like a normal business for the purposes of generating a profit. This can include certain religious groups, those who help people in need, some educational institutions and charities. If the group has filed for and received 501(c)(3) status from the IRS, they do not need to pay income taxes. However, during the process of setting up such entities, Massachusetts tax lawyers are usually necessary as not all organizations that apply will receive this status. Years with large deductions

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While these years are likely to be rare throughout a person’s life, it is possible that someone may have enough deductions to offset their entire tax liability. This can potentially happen in situations such as a sudden emergency that results in medical bills or if the person puts a lot of money into starting a business. Tax lawyers can look for legitimate deductions that can help a person save money. Low income individualsCertain individuals may have little to no income in a given year. This can be due to unemployment or other situations where the person is able to manage their finances without taking a salary or being paid in a way that counts as income. There may also be reasons to keep income low for certain individuals to avoid tax burdens and other financial issues. However, the income threshold for having to pay federal tax is fairly low, and anyone who makes several thousand dollars or more depending on their filing status is going to have to pay some income taxes. Estate planning lawyers can also provide advice regarding whether money that comes from investments, trusts, or other similar sources counts as income. More advice about tax lawUSAttorneys.com is a service that gets people connected with lawyers in their location. Anyone who needs a referral to an attorney in their city or state can call 800-672-3103.
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About Peter Charles

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