How Much Is 55000 A Year Per Paycheck
When looking at how much $55,000 a year is biweekly in your paycheck, you simply need to calculate how much you would earn over every two weeks. If you assume a full-time position with no overtime and exactly 40 hours per week, then you would earn $55,000 / 26 bi-weekly pay periods = $2,115.38 per biweekly paycheck.
Illinois Sales Tax On Car Purchases:
Vehicles purchases are some of the largest sales commonly made in Illinois, which means that they can lead to a hefty sales tax bill. This page covers the most important aspects of Illinois’ sales tax with respects to vehicle purchases. For vehicles that are being rented or leased, see see taxation of leases and rentals.
Illinois collects a 7.25% state sales tax rate on the purchase of all vehicles. There is also between a 0.25% and 0.75% when it comes to county tax. In addition to state and county tax, the City of Chicago has a 1.25% sales tax. There also may be a documentary fee of 166 dollars at some dealerships. The taxes can be different in the case of a vehicle being purchased by a private party.
In addition to taxes, car purchases in Illinois may be subject to other fees like registration, title, and plate fees. You can find these fees further down on the page.
What If Im Part Of A Group Of People Who Won A Prize Gambling
If you are among a group of people who split prize winnings, meet federal Form5754.
On that form, youll put information like addresses, names, and tax IDs about everyone in the group. Once youve filled it out, make a copy for everyone in the group.
Then, submit the original to the entity granting the prize. That company will use that information to send everyone an individual Form W-2G.
Once youve got that, you can go through the standard procedure of reporting those winnings to the IRS and the IL Department of Revenue. Do not attach the 5754 to your federal or state tax returns. Keep it for your records.
Now that weve gone through all the scenarios, there is a bit of good news. The IRS does afford you some wiggleroom on gambling.
Read Also: How Can I Make Payments For My Taxes
Now Write Those Paychecks
Youre the boss of your business, and now youre the boss of payroll! Once youve calculated each employees net pay by implementing deductions and withholdings, youre good to cut those checks.
In addition to making sure your employees dont have to wait any longer for their paychecks, make sure you set aside the amount of money your company needs to pay. FICA and UI payments can add up quickly, but if you fulfill them on time, youll be golden.
Illinois Sales Tax Calculator
You can use our Illinois Sales Tax Calculator to look up sales tax rates in Illinois by address / zip code. The calculator will show you the total sales tax amount, as well as the county, city, and special district tax rates in the selected location.
Illinois has a 6.25% statewide sales tax rate,but also has 898 local tax jurisdictions that collect an average local sales tax of 1.571% on top of the state tax. This means that, depending on your location within Illinois, the total tax you pay can be significantly higher than the 6.25% state sales tax.
For example, here is how much you would pay inclusive of sales tax on a $200.00 purchase in the cities with the highest and lowest sales taxes in Illinois:
Recommended Reading: Buying Tax Liens California
Illinois Tax Rate On Sportsbook Winnings
Online and retail sportsbetting is the newest form of gambling in Illinois. For tax purposes, however, its the same as any other form.
There is a 15% tax rate if you earn $600 or more betting on sports in Illinois. This amount is cumulative over the course of the year.
You should receive a Form W-2G from each sportsbook that paid out to you. Again, use the information on those forms to report your sports gambling winnings to the IRS and the state.
You can deduct the amounts you wagered and lost on your federal taxes if you itemize your deductions. You cant deduct wagers from winning bets, however.
Regardless of where your gambling winnings came from, your tax responsibilities are the same. Once youve paid and reported, the rest is yours to enjoy as you please.
Where To Send Your Illinois Tax Return
|Income Tax Returns , Quarterly Tax PaymentsIllinois Department of Revenue|
You can save time and money by electronically filing your Illinois income tax directly with the . Benefits of e-Filing your Illinois tax return include instant submission, error checking, and faster refund response times. Most tax preparers can electronically file your return for you, or you can do it yourself using free or paid income tax software, like the examples listed below.
Illinois provides the WebPay portal for all taxpayers to electronically file their IL-1040 forms. If you eFile your taxes, you can expect to receive your income tax refund sooner and will be able to get instant verification of your tax return submission.
Illinois also accepts online payments of your tax debt with credit cards and debit cards, or through a bank transfer. There is, however, a convenience fee for the use of a credit or debit card when paying your taxes.
To e-file your Illinois and Federal income tax returns, you need a piece of tax software that is certified for eFile by the IRS. While most in-depth tax software charges a fee, there are several free options available through the states, and simple versions are also offered free of charge by most tax software companies.
Recommended Reading: Prontotaxclass
How Do I Report Winnings To The Irs Using W
Once youve received all the W-2G forms you expect, you need to transfer the amounts shown on those forms to your federal income tax return.
The first step to doing so is adding up the amounts in Box 1 of all the W-2G forms you have.
Attach Schedule 1 to your Form 1040. Box 2 on your W-2G form show the amounts that the entity or entities you gambled with withheld from your winnings for tax purposes during the year.
Again, add those amounts up if you have more than one W-2G. That total then goes on Line 17 of your 1040. Do not attach any of your W-2G forms to your 1040.
Keep these forms in your records for at least five years. At that point, youve completed your obligation to report your gambling winnings to the IRS.
Whether or not you will have to pay tax on your winnings depends on how much you won, how much the gambling company withheld, and what is the federal tax rate.
Now, its on to your state taxes.
Are Transfers To Trusts Subject To Gift Tax
âTransfers to revocable trusts are not subject to gift tax. Transfers to irrevocable trusts may be subject to gift tax, depending on how the trust is designed. For more on this, check out our articles, What is the Difference Between a Revocable Trust and an Irrevocable Trust? and Irrevocable Trusts, Estate Tax and Gift Tax Explained.
Recommended Reading: What Does Agi Mean In Taxes
What Is A Present Interest Gift For Gift Tax Purposes
A âpresent interest giftâ is one that the recipient has full control over. It is not contingent on time passing or some future event occurring. For this reason, many gifts to irrevocable trusts may not qualify for the annual gift tax exclusion if the trusts limit the beneficiaryâs present control over the gift. There are workarounds for this, that we cover in our article, Irrevocable Trusts, Gift Tax, and Estate Tax Explained.
How Income Taxes Are Calculated
When Do We Update? – We regularly check for any updates to the latest tax rates and regulations.
Customer Service – If you would like to leave any feedback, feel free to email
Jennifer Mansfield, CPATax
Jennifer Mansfield, CPA, JD/LLM-Tax, is a Certified Public Accountant with more than 30 years of experience providing tax advice. SmartAssets tax expert has a degree in Accounting and Business/Management from the University of Wyoming, as well as both a Masters in Tax Laws and a Juris Doctorate from Georgetown University Law Center. Jennifer has mostly worked in public accounting firms, including Ernst & Young and Deloitte. She is passionate about helping provide people and businesses with valuable accounting and tax advice to allow them to prosper financially. Jennifer lives in Arizona and was recently named to the Greater Tucson Leadership Program.
Recommended Reading: How Much Does H& r Block Charge To Do Taxes
County Motor Fuel Tax
Motor fuel tax is imposed on the privilege of operating motor vehicles on public highways. It is paid by distributors and suppliers who collect the tax from customers.
DuPage, Kane and McHenry counties have imposed a tax on the retail sale of motor fuel at a rate not exceeding 4 cents per gallon. DuPage, McHenry and Kane counties levy the tax at the maximum rate.
Getting Your Illinois Tax Refund
If your state tax witholdings are greater then the amount of income tax you owe the state of Illinois, you will receive an income tax refund check from the government to make up the difference.
It should take one to three weeks for your refund check to be processed after your income tax return is recieved. E-filing your return and filing early can help ensure your refund check gets sent as quickly as possible.
Once you’ve filed your tax return, all you have to do is wait for your refund to arrive. If you want to check the status of your Illinois tax refund, you can visit the Illinois Income Tax Refund page.
Read Also: Www.myillinoistax
Wise Is The Cheaper Faster Way To Send Money Abroad
Exporting or importing goods from abroad to sell in the US? Want to pay your sales tax via direct debit?
With Wise for Business, you can get a better deal for paying supplier invoices and buying goods overseas. Well always give you the same rate you see on Google, combined with our low, upfront fee so youll never have to worry about getting an unfair exchange rate.
That means you spend less on currency conversion, and have more to invest in growing your business.
Set up recurring direct debits from your Wise account, where payments will be automatically taken out on schedule. So it’s not only money you’ll be saving with Wise, but time as well.
How Much Are Transfer Taxes In Illinois
Transfer taxes are ordinarily assessed as a percentage of either the sale price or the fair market value of the property that’s changing hands. State laws usually describe transfer tax as a set rate for every $500 of the property value. You may be responsible for transfer taxes at multiple levels of government, depending on where the property is located.
To calculate the transfer tax burden on the sale of real estate, you’ll first need to know the transfer tax rate. Transfer tax rates are frequently charged per each monetary unit of sale price.
The state of Illinois has a transfer tax that is typically paid by sellers at a rate of $0.50 per $500, or $500 per $100,000 of property value. In addition, counties may apply an additional tax of $0.25 per $500.
Read Also: File Missouri State Taxes Free
How Would Illinois Have Compared To Other States
As of 2019, 43 states levied a tax on personal income. Of these 43 states, 11 states, including Illinois, had a flat income tax rate, meaning there is a constant rate across income before deductions and exemptions. In Illinois, income was taxed at a flat rate of 4.95%. The flat income tax rates ranged from 2.00% in Tennessee to 5.25% in North Carolina. Tennessee’s income tax was scheduled to be reduced to 1.00% in 2020 and to be repealed entirely in 2021.
Most states had a graduated income tax, with different rates applied to different levels of income. Under Illinois SB 687, the proposed tax rates would have ranged from 4.75% to 7.99%. Compared to 2019 tax rates, Illinois would have had the sixth-highest top-bracket rate. The state with the highest top-bracket rateâand the largest difference between the bottom and top ratesâwas California, where the bottom rate was 1.00% and the top rate was 13.30%.
Illinois State Taxes For Gambling Winnings
The state of Illinois considers all gambling winnings to be personal income. Again, how much you will owe depends on how much income you collected from all sources during the year.
Currently, Illinois has a flat tax rate of 4.95% for all residents. Illinois attempted to pass a graduated income tax amendment, but voters denied it in 2020.
If youre a full-time Illinois resident, you should report your gambling winnings on Form IL-1040. If you won cash or a prize gambling within Illinois, you would need a Schedule M and a Schedule IL-WIT.
Schedule M lets the Illinois Department of Revenue know how much you made in profit from in-state gambling over the course of the tax year. Again, this is where your W-2G forms come in handy.
Add up all the amounts from Box 1 on all your W-2G forms. Then, put that amount on Line 11 of your Schedule M and denote it as gambling winnings. The total from Line 12 of your Schedule M goes on Line 3 of your IL-1040.
Attach the Schedule M to your IL-1040. Again, do not attach your W-2G forms to your state return. Schedule IL-WIT is how you report any amounts withheld from your winnings by a gambling company in Illinois.
Report each W-2G form on a separate line on the Schedule IL-WIT. Then, transfer your total from Line 11 to Line 25 of your IL-1040. Attach the Schedule IL-WIT to your IL-1040.
Also Check: How Much Does H& r Block Charge To Do Taxes
Other Taxes And Fees Applicable To Illinois Car Purchases
In addition to state and local sales taxes, there are a number of additional taxes and fees Illinois car buyers may encounter. These fees are separate from the sales tax, and will likely be collected by the Illinois Department of Motor Vehicles and not the Illinois Revenue Department.
Title Fee: Registration Fee: Plate Transfer Fee:
Average DMV fees in Illinois on a new-car purchase add up to $991, which includes the title, registration, and plate fees shown above.
Illinois Tax Tables And Personal Income Tax Rates And Thresholds In Illinois
Each year, the state of Illinois publishes new Tax Tables for the new tax year, the Illinois Tax Tables are published by the Illinois State Government. Each of these tax tables contains rates and thresholds for business tax in Illinois, corporation tax in Illinois, employer tax in Illinois, employee tax in Illinois, property tax in Illinois, sales tax in Illinois and other tax rates and thresholds in Illinois as well as providing instruction and guidance for changes to specific Illinois state tax law and/or tax legislation.
These tax tables are then, amongst other things, used to calculate Illinois state tax and associated payroll deductions. The changes to the Illinois tax tables can be long and often contain information that , whilst important for the correct calculation of tax in Illinois, is not relevent to the majority of Illinois taxpayers who pay most of their direct tax via their salary income. The Illinois state tax tables listed below contain relevent tax rates and thresholds that apply to Illinois salary calculations and are used in the Illinois salary calculators published on iCalculator. The Illinois state tax tables are provided here for your reference.
You May Like: How Much Does H& r Block Charge To Do Taxes
Can You Deduct Transfer Taxes
Unfortunately, transfer taxes are not tax deductible. The seller will often be responsible for paying the tax the tax is not deductible for either the buyer or the seller.
Whether you are buying or selling, the IRS does not allow you to deduct transfer taxes, or any other taxes involved in the sale of a personal home for that matter. This includes other costs such as the recording tax paid on each mortgage.
However, transfer taxes in some areas are “deductible” from one another: the tax you pay to one level of government may reduce the tax you owe to another.
There is one exception to this standard: while transfer taxes cannot be deducted on the sale of personal property, they can be deducted as a work expense if the property is used as a rental home or a real estate investment.
Additionally, transfer taxes can be used to reduce the seller’s tax exposure. This is accomplished by offsetting any capital gains earned in the sale.
Let’s dive into an example: if you purchase a home for $250k and sold the same property for $520k, your gain on sale would be $270k. If you are filing alone, you must pay taxes on any gains over $250k, and $500k for married couples filing jointly.
This means you would pay taxes on the remaining $20,000. However, if you spent $8,000 in transfer taxes, these are added to the house’s original property value. This brings your taxable gain down to $12,000.