Exempt individuals are certain types of individuals whose physical presence in USA is not counted fro tax residencey purpose .In earlier articles on tax residency , readers were informed that for determining the tax residency , a substantial presence test is done to determine if the person concerned was in USA for specific number of days .It was also stressed that certain physical presence days are not counted or exempt days for determination of tax residency under Internal Revenue Code. Apart from exempt days , US tax law provides that number of days of presence of certain individuals may may not count for determining the number of days of substantial presence in USA. This benefit is allowed to very limited number of persons referred as exempt Individuals.
In the United States , a worker receives unemployment compensation or benefits equal to between 40-50% of their previous pay generally . This is on account of Federal Unemployment Tax Act (FUTA), which authorizes the Internal Revenue Service (IRS) to collect an annual federal employer tax. This tax funds the program to compensate workers who have become unemployed through no fault of their own. As a rule , if anyone receieves unemployment compensation during the year, he/she should receive Form 1099-G that shows the amount of unemployement compenation paid to him .
Individual Retirement Agreements or IRAs are investment tools for tax savings by employed persons. So, an employee can save by opting for traditional IRAs or participating in IRA (Roth) . But the Internal Revenue Code provides for IRA contribution limit . In other words,one can save in these retirement savings instruments only up to an extent . If you exceeds the limit, you will have to pay tax on excess contribution. So here are five most important points on IRA or IRA(Roth) contribution limits