15 Tax Terms Every Adult Should Know
It seems that the older we get, the more complicated our taxes become. As our financial portfolio grows, so does our tax responsibilities. It’s difficult to remember all of the terms and what they each mean. Let’s take a look.
Adjusted Gross Income
Often called AGI, adjusted gross income is the total income that you’ve received throughout the year. This includes your wages, any interest accrued, capital gains, and dividends. The reason it’s called “adjusted” is because it also takes into account the deductions throughout the year. Any contributions made to an IRA, certain business expenses, alimony payments, and even moving costs. The AGI is your income minus the specific reductions and is the first place to start when determining your income tax.
Standard Deduction
A standard deduction is determined by your filing status and is available to all tax filers. It’s a fluctuating amount, year by year, based on inflation. This is the fixed amount that tax filers may deduct from their income. A standard deduction allows taxpayers to eliminate the need for itemizing actual deductions like medical, charitable, and state taxes. This is the most popular deduction method for tax filers.
Itemized Deductions
While a standard deduction is a specific dollar amount that fluctuates with inflation, itemized deductions allow taxpayers to deduct expenses from the AGI. This allows you to have a smaller income total when you calculate your annual taxes. Deductions must meet IRS limits before being claimed but include things like mortgage interest, gambling losses, charitable donations, other taxes, medical expenses, and losses from theft. Tax filers must prepare a Form 1040 and list the deductions on Schedule A.
Withholding
If you’ve filled out a W2 form, you might have seen the term withholding. This is often called pay-as-you-earn taxes. Rather than wait to pay the whole tax bill at the end of the year, this allows taxes to be taken from the wages prior to receiving a paycheck. The funds are placed into an IRS account and credited when you file your tax return at the end of the year.
Exemption
The IRS allows you to claim tax exemptions. This includes you, any dependents, and your spouse. Similar to a standard deduction, the IRS sets an amount for each of the exemptions that you subtract from your AGI to give you a lower income amount to file taxes. This is in addition to the standard or itemized deductions that you claim.
Taxable Income
The total, or gross, income, once you’ve adjusted for all deductions and exemptions, is your taxable income. This is the final dollar amount of income that is used to figure out what you owe in taxes for the year.
Tax Credits
Once you’ve calculated your tax bill, tax credits allow you to reduce what you owe to the IRS. Considered more valuable than deductions because they reduce the amount of tax owed. If you had a tax bill of $800 but qualified for $1000 in tax credits, you would end up with a refund.
Tax Deductions
The IRS allows tax filers to deduct expenses from the AGI to find the total taxable income. If you have a lower income, the tax bill should be lower, making this a beneficial tool for tax preparers. Two of the most popular deductions are the standard deduction offered by the IRS which is a fixed amount. The other popular deduction option is itemized deductions which allow you to get more specific with your deductions.
Voluntary Compliance
This is the system that keeps our economy honest. The IRS is a beast of an organization and even still it’s difficult to police every single taxpayer in the country. Voluntary compliance is the system in which taxpayers honestly report their income and tax burden to the IRS.
Progressive Taxation
The lower your income, the less you pay in taxes; the higher your income, the more you pay in taxes–this is the idea behind progressive taxation. You might have heard the term, tax brackets. The United States uses progressive tax brackets that start at 10% and rise to near 40% for the wealthiest of taxpayers.
Defined Contributions
The most popular type of retirement plan is a defined contribution plan. These include contributions made by yourself and your employer if you’re lucky enough. The account value will vary depending on performance. You’ll recognize defined contribution plans by their names 401(k), 403(b), profit sharing, and stock ownership programs. These fall into the AGI.
Defined Benefits
Less popular than defined contribution plans are defined benefits plans. Also a form of retirement plan, you’ll typically hear these called pension plans. More popular a few decades ago but still available depending on industry and company. It’s a guaranteed monthly benefit that you receive at retirement, usually based on salary or age.
Dependent
The IRS allows you to claim dependents on your tax forms. This is a person, other than yourself or spouse, in which you can claim as an exemption. Typically, this is a child or older relative for whom you provide full care.
Filing Status
Your relationship status determines how you are going to file your taxes and any tax breaks that you may be entitled. The most popular filing statuses are “Single”, “Married Filing Jointly”, and “Married Filing Separately.” The IRS offers a great resource to figure out the correct status for you.
Capital Gains
A capital gain is a profit that you’ve received from ridding your portfolio of an asset. These are things like selling stocks or real estate. A capital gains tax is a 15% tax incurred on these sales or 20% for wealthier individuals.
Learning tax terms doesn’t have to be difficult. The more prepared we are with what things are, the easier our taxes become. Understanding the complex world of taxation allows us to take control over our financial independence.
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4 Things You Absolutely Must Have in Your Will
While everyone knows that having a will makes everything a little easier on your family after you pass, not everyone knows what your will should include. Before you have your will drawn up, you should carefully consider these five must-haves.
Asset Division
While splitting money up can be easy, possessions cause a lot more trouble. There are memories attached to a lot of items, and more than one person might want something. When dividing up your assets, make sure you designate the new owners of any big-ticket items in your will. For other things, you can either divide them up before you die or you can leave a list of who gets what. This can be tedious, but it can be necessary if there are disagreements.
Donations
You aren’t required to leave all of your money to your family, but you will need to specify who you want to leave it to or it will be distributed according to legal tradition. Be aware that it certain areas, money donated after your death to charity can be considered taxable, so you will want to consult with your lawyer to find the best possible option for donating money.
Designated Guardian
If you have dependents, you should make sure that you designated someone to take care of them in the case of your sudden death. This is especially important for parents who have young children. You don’t want to consider dying while your children are still young, but you don’t know what may happen. Choose someone who will not only be willing to take care of your dependents but is also able to take care of them. Their favorite relative may seem like a good choice, but you need to make sure that it is the best choice.
Choose an Executor
The executor is the person that will make sure that you will is properly carried out, so this is a very important choice. The one catch is that this probably shouldn’t be someone who is close to the situation or that will be benefiting from your will. This will allow them to carry out your will without being personally influenced by what they want. Because of this, many people choose to use their lawyer as an executor. Whoever you end up choosing, make sure that they are okay with this role.
It’s never easy to consider what will happen after you die, but these things are crucial to make sure that your family is well taken care of. Don’t be afraid to consult with your family members and professionals when creating your will in order to make sure that everything is exactly as it should be.
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Considerations When Naming a Guardian
How Malpractice Lawsuits Can Hurt Your Medical Practice
Whether you are a physician or an owner of a health facility, it is essential for you to know how various situations can affect your practice. Physicians are duty-bound to offer medical care to their patients. As a physician, you will be expected to uphold the dictates of the Hippocratic oath which expressly require you do no harm to your patient. Being careful in the way you attend to your patients is very important both to you and to the healthcare facility that you are affiliated to. However, in some cases, you might be wrongly sued for medical malpractice. When this happens, you need not to despair; you should seek the legal counsel of a qualified attorney who will advise you on how to counter the suit.
What to do if you have malpractice insurance
If you have a malpractice insurance cover, you should inform your insurer of any malpractice lawsuit that is brought against you. Remember insurance covers are meant to protect you in case an insured event happens and in this case, the insured event is being sued for medical malpractice. Having this kind of insurance cover will reduce the stress that accompanies being sued by your patients.
Upon notifying your malpractice insurer, you will be assigned an attorney to help you with the case. You need to cooperate with your attorney and do exactly as he or she directs you to do. For example, if the attorney asks you for client records to help in building your defense make sure that you have supplied them in good time. These cases tend to be all about the victim. According to FLG, “a careless mistake can be devastating, leading to serious injury or death, changing your life forever.”
Should you fight or settle?
Similar to any other serious lawsuit, malpractice lawsuits carry some severe penalties which must be thought through when weighing between settling and fighting the case. Good news for you if you have an attorney assigned to you by your insurer or your own hired attorney because they will use their experience to weigh the merits of each move and advice on the best move. Don’t be afraid to settle when your attorney advises you to settle. This move might help you redeem your reputation and get back on track.
Parting shot:
Malpractice lawsuits can taint your medical career and tarnish the reputation of the health facility you work for. It is therefore essential for you to work with an attorney who will help you fight the lawsuit and emerge victoriously.
OSHA Laws All New Businesses Should be Aware Of
All businesses are required to comply with OSHA laws and regulations. These rules help in explaining the federal laws and regulations requirements that are concerned with safety and health in the workplace. Enforcing OSHA also helps to create a safe and healthy workplace for all workers in conformity with the law. It is therefore essential to understand the rules that will affect you when starting a new business. Here are some basics in getting OSHA implemented in all facets of your work.
Responsibilities as an Employer
Under the provisions of the OSHA Act, an employer must provide a safe and conducive workplace for employees, free from hazards that may cause physical harm or even fatalities. It applies regardless of the size of the business. The OHSA requirements should be readily available in the workplace for the employees to access them upon request. Any new employer must also display OSHA’s Safe and Healthful Workplaces poster in a notable and conspicuous location at the workplace where prospective employees and current employees can see it. It helps inform employees of their rights and responsibilities under the OSHA Act.
Keep Records of Injuries and Illnesses
Employers are required to keep a record of occupational injuries and illnesses reported in the workplace, especially if the number of employees is 11 or more. It is done using OSHA Form 300, Log of work-related injuries and illnesses. However, such records are not required in a most retail trade, insurance, real estate, finance, and other service industries.
Employers are required to inform their employees of any hazardous chemicals at the workplace and their dangers. This information includes the identities of the chemicals employees might be exposed to on the job and also describes the protective measures to be taken to prevent adverse effects. The chemicals manufacturers and importers must also evaluate their products and give elaborate information on hazards to customers. This includes things like signs for slippery and wet floors and fire exits.
Business Inspection
All businesses covered by the OSHA Act must comply with set safety and health standards at the workplace. Businesses are also subject to inspection by federal or state compliance safety and health officers who have knowledge and experience in the occupational safety and health field. Depending on your industry and your state, you may be subject to these inspections on an annual basis.
OSHA provides several services that primarily benefit new businesses a lot and these services include advice, education, and assistance to new business. It works with professional organizations, unions, and community groups concerning issues of a safe and healthy workplace as they provide consultation, instructions, publication, and partnership services. Don’t neglect this important aspect while building your business and hiring new employees.
Slow Down! 4 Ways Reckless Driving Can Come Back to Haunt You
Reckless driving is not a joke. You see it all the time when people fly past you, when vehicles weave in and out of traffic, and when people make the decision to drink and drive. Reckless driving isn’t funny, and it’s sometimes deadly. What might start out as a joke racing another car at a red light could end with hit-and-run accidents that cost you your future.
Serious Injury
When you are speeding, it will take longer for you to stop, or you may not see a car until it is too late. You are less likely to be checking your mirrors. Imagine being the person responsible for someone’s inability to walk, or that causes someone to lose a limb. It happens all the time when people drive recklessly. Not only could you hurt someone else, you could hurt yourself. A few minutes of speeding or careening around the highway can end in hundreds and thousands of dollars in medical bills.
Death
Not only could you be responsible for seriously hurting yourself or someone else, you could kill someone. Reckless driving is responsible for 33% of fatal accidents. While the guilt you may feel from being responsible for someone’s death will never go away, you could be the one who doesn’t walk away, and you will be leaving your family to deal with that. If you do kill someone, you will have to deal with the legal ramifications and the jail time that accompanies that.
Drunk Driving
Driving while drinking is one of the most irresponsible and reckless things that you can do. The facts are well known, but there are still too many people who think they are invincible. When you are under the influence, your judgment and reaction times are severely impaired, to the point that you are a serious danger. Not only are your more likely to hurt someone or yourself, you are less likely to stop at the scene of the accident. Your judgment is impaired, so you may not even realize what you have done. Now you have added a hit-and-run to your already bad decisions.
Loss of License
You may not face the consequences of reckless driving right away, but they will catch up to you eventually. If you accumulate enough tickets to prove that you are not a safe driver, you will lose your license and have to pay through the nose to get it back. This includes hefty fines, driving school, limitations on your license when you get it back, and other penalties, depending on the severity of your offense.
Making the decision to drive recklessly is too dangerous. Remember that what happens today could still haunt you for the rest of your life, and you’ll never get over it. Make wise decisions, and stay out of the car if you cannot drive without endangering yourself or others.
Slip and Fall Suits Are Legitimate Legal Cases
Slip and fall incidents have been running gags in films and on television programs for decades. These pratfalls belay the reality that slip and fall accidents can result in serious injuries, and even death. And slip and fall lawsuits, although also frequently ridiculed, are highly serious legal matters.
Frequency of Slip and Fall Accidents
Millions of people in the United States are injured each year in slip and fall accidents, many of these people are seriously harmed. Thousands of people are killed. Half of all household accidents involve falls, the vast majority being slip and fall incidents as opposed to falling off of something.
When it comes to commercial spaces, especially supermarkets and grocery stores, slip and fall accidents top the list of what causes the highest number of injuries to customers or patrons each year. Similarly, slip and fall accidents are the most common cause of injuries in the workplace as well in the United States.
Injuries, Damages, and Losses from Slip and Fall Accidents
As noted previously, injuries, damages, and losses that can result from a slip and fall accident can be profound. For example, all manner of broken bones, as well as damaged soft tissue, can result from a slip and fall accident.
Head injuries, including traumatic brain injury, are a frequent result of a slip and fall accident. The stark reality is that thousands of people end up with permanent brain injuries as the result of slip and fall accidents each year in the United States.
Compensation in a Slip and Fall Lawsuit
Compensation sought and awarded in a slip and fall case depends largely upon the circumstances surrounding the accident, coupled with the nature and extent of injuries sustained in the accident. With that said, common types of losses for which financial compensation is sought in a slip and fall lawsuit include:
- medical bills and expenses
- permanent disability
- pain and suffering
- mental anguish and emotional distress
- lost wages
An injured person is entitled to compensation in a slip and fall case not only for existing losses, but for those that reasonably can be expected to be incurred in the future. For example, following a slip and fall accident, an injured person may require ongoing medical care and treatment for an extended period of time. An injured individual may endure pain for an indefinite period of time. These represent the types of reasonably foreseeable losses for which compensation may be sought in a slip and fall case.
5 Important Things for Hit-and-Run Victims to Understand
Getting in an accident is never an easy experience, and being the victim of a hit and run only makes it worse. It comes out of nowhere, and you might not know what to do in the aftermath. Everything you are used to hearing about with car accidents assumes that the other person isn’t going to run away. So what do you need to do now?
Take Care of Yourself
Your first priority is treating any injuries. Are you bleeding? Does it appear you may have broken bones or whiplash? Is there pain? Are you suffering from shock? Assess your condition and the condition of your passengers so you can properly address any problems. Just as you would in a normal accident, if you are in the middle of the road and our car is still mobile, move it to the side of the road. If it isn’t mobile, get everyone who was in the car to a safe spot so you don’t get hurt any worse.
Write Everything Down
Once everyone is in a safe place, start writing down as many details as you can remember about the accident. You should write down what happened and anything you remember about the car that hit you. The make and model, color, full or partial license plate, and any distinguishing features like stickers or dents can all help the police identify the car that hit you. If there are witnesses who stop to help, ask them to write down anything that they remember as well, in addition to their contact information.
Call the Police
When you contact the police, they will come create a report, just as they would with a normal accident. Don’t leave until they have come, or you won’t have a case against the other driver. The police will collect the information you have written down and use that find the other driver.
Call Your Insurance
It is crucial to contact your insurance company as soon as possible. If the hit-and-run driver cannot be identified, your insurance may cover any damages or injuries that occurred. Additionally, your insurance company will want the other driver’s insurance to pay them back, so they will also attempt to find the other driver. The more eyes out looking, the more likely it is that the other driver will be found.
Get Legal Help
In some cases, the victim’s insurance company is able to provide coverage and pay for your injuries, it doesn’t always work that way. According to Page Law, even if the other driver is convicted, you might not necessarily get a settlement unless you file a personal injury lawsuit. This will allow you to receive full compensation from the person who actually hurt you.
Hit-and-run accidents are complicated and messy, and it can be incredibly difficult to figure out. If you are struggling, don’t be afraid to lean on other people for help.
Driving Under the Influence: What You Need to Know
Everyone knows that driving under the influence is not something to joke around with. Getting pulled over and charged with a DUI is a serious thing and you can face hefty penalties for it. But how much do you actually know about a DUI and all that comes with it?
When it Become Illegal
Driving under the influence is illegal if you’re using any type of drug or your alcohol level is above the legal limit. The legal limit is a blood alcohol content (BAC) of .08 or more. However, if you are pulled over and your BAC is .07 or above, you can also be charged with driving while intoxicated. It all depends on the circumstances and your driving. There are no set number of drinks that you can have before you hit the legal limit, so it is best to just not drive if you have been drinking.
It’s More Than Alcohol
Although the measurement is called a blood alcohol content, it looks at more than just the level of alcohol in your body. It can also be affected by certain medications or drugs. If you are taking medication, make sure you read the warning labels. It will tell you if you aren’t supposed to drive or operate machinery. Recreational drugs will also cause problems, and it is even worse if they are mixed with alcohol. Safe to say, if you take anything that will impair your judgment, you shouldn’t be driving.
An Arrest Doesn’t Mean a Conviction
If you are pulled over and arrested for a DUI, that doesn’t necessarily have to be the end of it. The police rely heavily on breathalyzers to assess whether or not someone is over the legal limit, but these tests aren’t always accurate. The breathalyzer might not be properly calibrated, or it might be administered improperly. If you are arrested, it could be beneficial to talk to a lawyer about getting the charges dropped. However, if you were obviously soused, there isn’t much that can be done. The evidence is all there.
You Don’t Have to Drive Far to Be Arrested
If you are drunk and you get into your car to move it, even just a block or two, you could be in trouble. There isn’t a certain number of miles that you have to drive to be guilty, so just don’t risk it. You are a danger to yourself and to other people, no matter if you are driving home or just moving your car to the other side of the parking lot. Call a friend or a cab, just don’t drive your car.
It may seem harmless at the time, but there is never a good reason to drive when you are drunk, and there are plenty of reasons to not drive while drunk. Not only is a DUI costly, it will remain on your record for years and there is a high likelihood that you will hurt someone. Just put the keys down.
What to Know About Collecting Insurance Claims
Risk of loss is an abstract concept, but actual loss is not: it is as real as life and all of life’s difficulties. Risks are always prevalent and that is the reason why the insurance business is booming. People encounter losses by suffering directly from calamities, or by getting blamed (through fault or responsibility) for other people’s losses and bearing the liability for such calamities. The law tries to protect us from bankruptcy, and even worse situations, by requiring that we insure ourselves, our loved ones, and our property from numerous calamities.
It goes further to oblige third parties with whom we may interact during calamities to insure us from the consequences of their possible fault. However, with the occurrence of loss and manifestation of insured risks, insurance firms subject us to many different terms and conditions. You need to know how to go about lodging and collecting insurance claims if you are to ever get compensated, in full, for the value of your loss.
Indemnity
Insurance firms will only reimburse you for that which you lose. Under no circumstance will you ever get profits by collecting insurance claims. Also, compensation does not cover economic features such as inflation or depreciation. When making insurance claims, present figures of loss with provable exactitude for an easier time claiming and for a faster transaction.
Utmost Good Faith
Lying in your claim forms by providing inaccurate information or excluding critical details will do your claim no good. In fact, it may cause your claim to be voided, at best, and bring you legal trouble, if you are not lucky. Be honest, accurate, and timely in making your claims.
Subrogation
If you are advised, through your own reasoning or by counsel or request of your insurer to facilitate subrogation, do not fight it. Your insurer goes ahead to indemnify you and then solicit a refund of the compensated amount from the third party or its insurers. Subrogation means that your insurer finds it reasonable that a third party should compensate your loss because of liability reasons, like the case with a hit and run or other clear-cut cases. Never sign off a third party’s liability through agreements and waivers against the advice of your insurance company or you won’t get paid for any applicable deductions.
Indulge Legal Counsel
Seek documented medical services in case of injuries and report material loss incidences to relevant administrative authorities before lodging insurance claims. Make an accurate paper trail which is easy to follow and consult lawyers to advise you or assist you in filling all claim forms. That way, you will have a water-tight claim despite any murky legal environment that is denoted by abhorrent terms and conditions. Demand timely compensation, even in the midst of investigations.
Know your Rights
Do not cower or back off from demanding your rightful compensation under any circumstance. What is legally yours is guaranteed, especially if sought through litigation. However, staying on the right, following the rules and consulting legal counsel is always key to fruitfully collecting insurance claims.
Is Sexual Lifestyle Grounds to Terminate an Employee?
It’s a frightening notion to think that you could be dismissed from your job–or denied the possibility of employment–for being sick. Or simply for having a preference in lifestyle weighed down with decades of misunderstandings and assumptions.
However, there are legal protections in line to prevent discrimination from employers–either present or would-be–on the matter of sexual preference, lifestyle choices and medical status.
Discrimination vs. Lifestyle
As recently as 2017, the Federal Court judged that discrimination by an employer on the basis of an employee’s sexual orientation or lifestyle choices–provided no federal laws are being broken–is illegal. An employee’s lifestyle is not the business of the employer provided that all activities take place off the clock.
Despite the fears that many people have about their lifestyle affecting their ability to become employed, the public view is changing. Even Fortune 500 companies are changing their regulations to protect employees, current and prospective, from discrimination based on their lifestyle or sexual orientation.
Discrimination and Health
Due to the Americans with Disabilities Act, individuals that are HIV positive or have AIDS are protected against discrimination either from current employers or by prospective employers. Although employees being fired due to HIV positive status, such as the event fictionalized in the movie “Philadelphia,” isn’t unknown, strides have been taken to ensure that people have legal recourse to take. Those events took the first step in ensuring that people were treated fairly regardless of their health or their lifestyle choices.
This also means that it’s beneficial for people to know their HIV status as well as look into confidential STD testing for their overall health. With new advances in medication, such as the PrEP pill that can prevent HIV transmission, and widely available support programs, HIV status is no longer the deterrent that it once was.
Is Any Discrimination Legal?
Private employers may claim a certain amount of leeway from the federal government about discrimination practices. However, a few basic facts remain. It is illegal to discriminate against an employee on the basis of their sexual orientation, medical status or lifestyle choices.
What a person does on their own time, provided it doesn’t break federal laws, is their own business. An employer has no right to require certain behavior from an employee when that employee is not on the clock. And any employer that does take action against an employee for their sexual orientation or lifestyle choices is risking legal action. Your personal time is your own, and your personal life choices are the business of nobody but yourself.