The IRS states that you cannot claim rent on your federal income taxes unless it is paid for property used in a trade or business. Some states allow a partial or full deduction on the state income tax return.
For federal tax purposes, the IRS distinguishes between "personal use" and "business use," with only the "business use" portion of rent paid being deductible. This means that the rent on your apartment or house generally is not deductible. If you set aside a specific room to run your home-based business, a portion of the total rent may become deductible, according to the IRS. The State of Massachusetts allows residents a partial deduction for personal rent, as noted on Mass.gov.Learn More
According to the 2014 Internal Revenue Service tax rates, the total tax on a personal income of $1,000,000 would come to $353,045.75. This does not include any adjustments for deductions, head of household or marriage status benefits.Full Answer >
The IRS indicates that taxes are vital to support the infrastructure that citizens rely on at the local, state and federal levels. Taxes support national defense programs, roadway construction, social service programs, public health and education. Without taxpayer support, many of these programs cannot exist.Full Answer >
In the United States, taxes can be levied by federal, state and local governments. The Internal Revenue System is the federal agency that taxes all income annually.Full Answer >
The deadline for filing taxes is usually April 15 for most people. This applies for the filing of federal taxes, not state taxes. For people who cannot pay their taxes in full by April 15, a six-month income tax extension may be granted by the Internal Revenue Service.Full Answer >