የቦ ታክስ

ለዲያስፓራ አባላት አሁን ኢትዮጵያ ላላችሁ። የአሜሪካ ታክሳችሁን ካላችሁበት ሆናችሁ እንድታሰሩ ነገሮችን ሁሉ አስተካክለናል። ያልተሰራ የታክስ ውዝፍ (Back Tax)፣ መስተካከል ያለበት ታክስ (Amendment), የዚህ አመት ታክስ እና ሌሎችንም እንሰራለን።በViber ሆነ Whatspp ይደውሉልን። 619 255 5530 ። YebboTax info@yebbo.com Yebbo.com

Friday, September 12, 2025

100 FAQs for Travelers to Ethiopia | YebboTravel

100 FAQs for Travelers to Ethiopia | YebboTravel

100 FAQs for Travelers to Ethiopia

Quick answers about visas, passports, Yellow Card, flights, safety, money, culture, food, attractions, and more — curated by YebboTravel.

Ethiopia sits in the Horn of Africa, bordered by Eritrea, Djibouti, Somalia, Kenya, South Sudan, and Sudan.

Addis Ababa is the capital and largest city, home to the African Union and many international organizations.

Amharic is the federal working language; over 80 languages are spoken nationally, including Oromo, Tigrinya, Somali, Afar, and more.

English is common in hotels, airlines, tour operations, and among many city residents; less so in rural areas.

The Ethiopian Birr (ETB). Carry small denominations for local markets and tipping.

Major hotels may take USD, but everyday purchases require Birr. Exchange at banks or licensed bureaus.

Rates fluctuate. Check banks or official bureaus on arrival and avoid street exchangers.

Accepted at upscale hotels, airlines, and some restaurants in cities; carry cash for shops and rural travel.

Yes, in Addis Ababa and large towns. Bring backup cash for remote areas and occasional outages.

East Africa Time (UTC+3). Ethiopia also follows the Ethiopian Calendar, ~7–8 years behind the Gregorian.

Most travelers need a visa; some regional nationals are exempt. Options include e-visa and embassy visas. Call YebboTravel at 619-255-5530 for visa help.

Apply online (e-visa) or via an Ethiopian embassy/consulate. Requirements vary by nationality. Call YebboTravel at 619-255-5530 for guided application support.

Some nationalities can obtain visas on arrival at Addis Ababa Bole International Airport. Rules change—verify before travel. Call YebboTravel at 619-255-5530 to check eligibility.

Common durations are 30 or 90 days (single or multiple entry). Call YebboTravel at 619-255-5530 to pick the right option.

Fees vary by nationality, duration, and entry type. Call YebboTravel at 619-255-5530 for current pricing.

Usually yes; some infants listed in a parent’s passport may follow the parent’s status. Call YebboTravel at 619-255-5530 to confirm requirements.

At least two blank pages for visas/stamps. For passport guidance or renewal tips, Call YebboTravel at 619-255-5530.

At least six months beyond your intended stay. For passport questions or renewals, Call YebboTravel at 619-255-5530.

Often required as proof of onward travel. For ticket booking or changes, Call YebboTravel at 619-255-5530.

Yes, at the Immigration and Citizenship Service in Addis Ababa. Processing times vary. Call YebboTravel at 619-255-5530 for extension support.

Yellow Fever may be required; Hep A/B, Typhoid, and Tetanus are commonly recommended. For Yellow Card scheduling, Call YebboTravel at 619-255-5530.

Required if arriving from (or transiting through) Yellow Fever risk countries. For appointments and proof, Call YebboTravel at 619-255-5530.

The Yellow Card is your Yellow Fever vaccination certificate. Many airlines/immigration points will ask for it. To arrange your Yellow Card, Call YebboTravel at 619-255-5530.

Requirements can change. Check with your airline and health authorities before travel.

Yes, in lowland regions. Addis Ababa and highlands have lower risk. Consult your doctor about prophylaxis.

Often recommended for rural/lowland travel. Seek medical advice based on your itinerary.

Tourist areas are generally safe with normal precautions. Avoid conflict zones and heed local advice.

Restrictions can apply in certain border or conflict-prone areas. Check advisories before travel.

Contact local emergency services, your embassy, and go to a reputable hospital. Carry insurance details.

Private hospitals in Addis offer better care; facilities can be limited in rural areas. Consider medical evacuation insurance.

Addis Ababa Bole International (ADD) is the main hub; a few other cities handle limited international flights.

ADD (Bole International). It has multiple terminals with lounges, duty free, and transit services.

Roughly 5–7 km (15–30 minutes by car depending on traffic).

Yes, in many areas and lounges. Speeds vary.

Yes—hotel shuttles, airport taxis, and ride-hailing apps operate at the arrivals area.

Yes, major domestic routes can be booked online. For ticketing, changes, or best prices, Call YebboTravel at 619-255-5530.

Ethiopian Airlines is the flag carrier with extensive domestic/international routes; others connect via regional hubs.

Yes, it’s among Africa’s most reputable carriers with a large modern fleet and global network.

Yes—meet-and-assist, lounge access, and ticketing support are available. For customized assistance, Call YebboTravel at 619-255-5530.

Yes, multiple lounges at ADD with food, showers, and Wi-Fi. Access depends on class of travel/status or paid entry.

Yes—international chains and quality local hotels exist across districts like Bole, Kazanchis, and CMC.

Many do. Arrange ahead through your hotel or tour operator.

Yes, especially in Addis and popular tourist towns like Lalibela, Gondar, Hawassa, and Bahir Dar.

Commonly $50–$120 per night in Addis; rates vary by season, location, and amenities.

Yes, if reputable. Read reviews and store valuables securely.

Yes, via booking platforms or direct websites. Tour agencies can bundle hotels with transfers and tours.

Some accept USD/EUR; most accept Birr. Ask before arrival and keep small notes.

Often yes, especially at business and tourist hotels.

Varies. Confirm policies before booking.

Most mid- to high-end hotels offer Wi-Fi; speeds can vary. Consider local SIM data for reliability.

Ride-hailing apps, hotel cars, and taxis are convenient. Light rail connects key corridors.

Yes with reputable drivers or ride-hailing apps. Agree on price if no meter.

Not always. Negotiate fare before departure if there’s no meter.

Local ride-hailing apps operate in Addis. Availability can vary by area/time.

Yes, with or without driver. Driving yourself is possible but local traffic norms can be challenging.

Recommended along with your valid home license if you plan to drive.

Express buses connect major cities; book early and expect long travel times due to terrain.

They are inexpensive but crowded. Use for short city hops; keep valuables secure.

Yes—use normal city precautions. It’s useful for commuting corridors.

Yes—flying is often the fastest way between far-flung destinations like Addis–Lalibela–Axum–Gondar.

Diverse and ancient—rooted in hospitality, faith, music, food traditions, and strong regional identities.

Ethiopian Orthodox Christianity, Islam, and Protestant denominations are most common; others also present.

Modest attire is appreciated, especially at religious sites. Layer for highland chill and sunny days.

Yes—small tips for service staff, guides, and drivers are appreciated.

Handshakes, shoulder touches among friends, and warm verbal greetings. Use right hand for giving/receiving.

Avoid overly revealing clothes at religious sites, public intoxication, and photographing people without permission.

Dress modestly; remove shoes when asked; women may cover hair in some churches; ask before photos.

Always ask permission first—some may request a small tip for posed photos.

With family gatherings, religious observances, coffee ceremonies, music, and special foods.

Ceremonial and social—freshly roasted beans, incense, and multiple rounds (abol, tona, baraka).

Doro wat (spicy chicken stew) is iconic, often served with injera and boiled eggs.

A spongy sourdough flatbread (often teff-based) used as a plate and utensil to scoop stews.

Many dishes use berbere spice, but mild options exist. Ask your server for spice level.

Yes—fasting (vegan) dishes are common: shiro, lentils, greens, and vegetable platters.

Stick to bottled or filtered water. Avoid ice in uncertain places.

Yes, especially on road trips or treks. Hydration is key at altitude and in dry climates.

Yes—beer, tej (honey wine), areki, and international spirits are available in cities and tourist hubs.

Coffee, tej, tella (local beer), and fresh fruit juices.

Yes—Italian, Middle Eastern, Asian, and fusion options are common in Addis.

Often with injera using hands; utensils provided in many restaurants on request.

Lalibela rock-hewn churches, Simien Mountains, Axum stelae, Gondar castles, Danakil Depression, Bale Mountains, and Lake Tana monasteries.

Generally, yes when open to tourism—check local advisories regarding regional conditions.

Yes—guided treks are popular. Prepare for altitude and variable weather.

Lalibela, Axum, Fasil Ghebbi (Gondar), Harar Jugol, Lower Omo and Awash Valleys, Tiya, Konso, and Simien National Park.

Fly or drive to Lalibela; hire local guides for context and access tips.

Yes—Bale, Simien, Awash, and Omo regions offer wildlife experiences distinct from classic savannah safaris.

Look for Gelada baboons, Ethiopian wolves (endemic), ibex, nyala, birds, and more in national parks.

Lake Tana (monasteries), Hawassa (lakeside vibe), Ziway, and the Rift Valley chain.

Yes—especially in rainy season when flow is strongest. Combine with Bahir Dar monasteries.

Yes—city tours, historical circuits, trekking, birding, coffee routes, and cultural tours are widely offered.

Yes at markets and with artisans; be friendly and fair.

Coffee, hand-woven scarves (netela), baskets, carvings, paintings, spices, and jewelry.

Absolutely—vacuum-sealed beans are widely available. Check your country’s customs rules.

Mostly in malls and upscale shops; bring cash for markets and small vendors.

Licensed banks and transfer services operate in major cities; bring ID and recipient details.

Many open Saturday mornings; Sunday closures are common. Hours vary.

10% is appreciated where service charge isn’t included; round up for small cafes.

Yes in select malls/hotels in Addis; selection is smaller than in larger global hubs.

Yes at the international airport; options vary by terminal and time of day.

Growing quickly in cities; delivery coverage varies. For gifts and experiences, local markets are still king.

This FAQ prepared by YebboTravel.

100 FAQs for Travelers to Ethiopia | YebboTravel

100 FAQs for Travelers to Ethiopia

Quick answers about visas, passports, Yellow Card, flights, safety, money, culture, food, attractions, and more — curated by YebboTravel.

Ethiopia sits in the Horn of Africa, bordered by Eritrea, Djibouti, Somalia, Kenya, South Sudan, and Sudan.

Addis Ababa is the capital and largest city, home to the African Union and many international organizations.

Amharic is the federal working language; over 80 languages are spoken nationally, including Oromo, Tigrinya, Somali, Afar, and more.

English is common in hotels, airlines, tour operations, and among many city residents; less so in rural areas.

The Ethiopian Birr (ETB). Carry small denominations for local markets and tipping.

Major hotels may take USD, but everyday purchases require Birr. Exchange at banks or licensed bureaus.

Rates fluctuate. Check banks or official bureaus on arrival and avoid street exchangers.

Accepted at upscale hotels, airlines, and some restaurants in cities; carry cash for shops and rural travel.

Yes, in Addis Ababa and large towns. Bring backup cash for remote areas and occasional outages.

East Africa Time (UTC+3). Ethiopia also follows the Ethiopian Calendar, ~7–8 years behind the Gregorian.

Most travelers need a visa; some regional nationals are exempt. Options include e-visa and embassy visas. Call YebboTravel at 619-255-5530 for visa help.

Apply online (e-visa) or via an Ethiopian embassy/consulate. Requirements vary by nationality. Call YebboTravel at 619-255-5530 for guided application support.

Some nationalities can obtain visas on arrival at Addis Ababa Bole International Airport. Rules change—verify before travel. Call YebboTravel at 619-255-5530 to check eligibility.

Common durations are 30 or 90 days (single or multiple entry). Call YebboTravel at 619-255-5530 to pick the right option.

Fees vary by nationality, duration, and entry type. Call YebboTravel at 619-255-5530 for current pricing.

Usually yes; some infants listed in a parent’s passport may follow the parent’s status. Call YebboTravel at 619-255-5530 to confirm requirements.

At least two blank pages for visas/stamps. For passport guidance or renewal tips, Call YebboTravel at 619-255-5530.

At least six months beyond your intended stay. For passport questions or renewals, Call YebboTravel at 619-255-5530.

Often required as proof of onward travel. For ticket booking or changes, Call YebboTravel at 619-255-5530.

Yes, at the Immigration and Citizenship Service in Addis Ababa. Processing times vary. Call YebboTravel at 619-255-5530 for extension support.

Yellow Fever may be required; Hep A/B, Typhoid, and Tetanus are commonly recommended. For Yellow Card scheduling, Call YebboTravel at 619-255-5530.

Required if arriving from (or transiting through) Yellow Fever risk countries. For appointments and proof, Call YebboTravel at 619-255-5530.

The Yellow Card is your Yellow Fever vaccination certificate. Many airlines/immigration points will ask for it. To arrange your Yellow Card, Call YebboTravel at 619-255-5530.

Requirements can change. Check with your airline and health authorities before travel.

Yes, in lowland regions. Addis Ababa and highlands have lower risk. Consult your doctor about prophylaxis.

Often recommended for rural/lowland travel. Seek medical advice based on your itinerary.

Tourist areas are generally safe with normal precautions. Avoid conflict zones and heed local advice.

Restrictions can apply in certain border or conflict-prone areas. Check advisories before travel.

Contact local emergency services, your embassy, and go to a reputable hospital. Carry insurance details.

Private hospitals in Addis offer better care; facilities can be limited in rural areas. Consider medical evacuation insurance.

Addis Ababa Bole International (ADD) is the main hub; a few other cities handle limited international flights.

ADD (Bole International). It has multiple terminals with lounges, duty free, and transit services.

Roughly 5–7 km (15–30 minutes by car depending on traffic).

Yes, in many areas and lounges. Speeds vary.

Yes—hotel shuttles, airport taxis, and ride-hailing apps operate at the arrivals area.

Yes, major domestic routes can be booked online. For ticketing, changes, or best prices, Call YebboTravel at 619-255-5530.

Ethiopian Airlines is the flag carrier with extensive domestic/international routes; others connect via regional hubs.

Yes, it’s among Africa’s most reputable carriers with a large modern fleet and global network.

Yes—meet-and-assist, lounge access, and ticketing support are available. For customized assistance, Call YebboTravel at 619-255-5530.

Yes, multiple lounges at ADD with food, showers, and Wi-Fi. Access depends on class of travel/status or paid entry.

Yes—international chains and quality local hotels exist across districts like Bole, Kazanchis, and CMC.

Many do. Arrange ahead through your hotel or tour operator.

Yes, especially in Addis and popular tourist towns like Lalibela, Gondar, Hawassa, and Bahir Dar.

Commonly $50–$120 per night in Addis; rates vary by season, location, and amenities.

Yes, if reputable. Read reviews and store valuables securely.

Yes, via booking platforms or direct websites. Tour agencies can bundle hotels with transfers and tours.

Some accept USD/EUR; most accept Birr. Ask before arrival and keep small notes.

Often yes, especially at business and tourist hotels.

Varies. Confirm policies before booking.

Most mid- to high-end hotels offer Wi-Fi; speeds can vary. Consider local SIM data for reliability.

Ride-hailing apps, hotel cars, and taxis are convenient. Light rail connects key corridors.

Yes with reputable drivers or ride-hailing apps. Agree on price if no meter.

Not always. Negotiate fare before departure if there’s no meter.

Local ride-hailing apps operate in Addis. Availability can vary by area/time.

Yes, with or without driver. Driving yourself is possible but local traffic norms can be challenging.

Recommended along with your valid home license if you plan to drive.

Express buses connect major cities; book early and expect long travel times due to terrain.

They are inexpensive but crowded. Use for short city hops; keep valuables secure.

Yes—use normal city precautions. It’s useful for commuting corridors.

Yes—flying is often the fastest way between far-flung destinations like Addis–Lalibela–Axum–Gondar.

Diverse and ancient—rooted in hospitality, faith, music, food traditions, and strong regional identities.

Ethiopian Orthodox Christianity, Islam, and Protestant denominations are most common; others also present.

Modest attire is appreciated, especially at religious sites. Layer for highland chill and sunny days.

Yes—small tips for service staff, guides, and drivers are appreciated.

Handshakes, shoulder touches among friends, and warm verbal greetings. Use right hand for giving/receiving.

Avoid overly revealing clothes at religious sites, public intoxication, and photographing people without permission.

Dress modestly; remove shoes when asked; women may cover hair in some churches; ask before photos.

Always ask permission first—some may request a small tip for posed photos.

With family gatherings, religious observances, coffee ceremonies, music, and special foods.

Ceremonial and social—freshly roasted beans, incense, and multiple rounds (abol, tona, baraka).

Doro wat (spicy chicken stew) is iconic, often served with injera and boiled eggs.

A spongy sourdough flatbread (often teff-based) used as a plate and utensil to scoop stews.

Many dishes use berbere spice, but mild options exist. Ask your server for spice level.

Yes—fasting (vegan) dishes are common: shiro, lentils, greens, and vegetable platters.

Stick to bottled or filtered water. Avoid ice in uncertain places.

Yes, especially on road trips or treks. Hydration is key at altitude and in dry climates.

Yes—beer, tej (honey wine), areki, and international spirits are available in cities and tourist hubs.

Coffee, tej, tella (local beer), and fresh fruit juices.

Yes—Italian, Middle Eastern, Asian, and fusion options are common in Addis.

Often with injera using hands; utensils provided in many restaurants on request.

Lalibela rock-hewn churches, Simien Mountains, Axum stelae, Gondar castles, Danakil Depression, Bale Mountains, and Lake Tana monasteries.

Generally, yes when open to tourism—check local advisories regarding regional conditions.

Yes—guided treks are popular. Prepare for altitude and variable weather.

Lalibela, Axum, Fasil Ghebbi (Gondar), Harar Jugol, Lower Omo and Awash Valleys, Tiya, Konso, and Simien National Park.

Fly or drive to Lalibela; hire local guides for context and access tips.

Yes—Bale, Simien, Awash, and Omo regions offer wildlife experiences distinct from classic savannah safaris.

Look for Gelada baboons, Ethiopian wolves (endemic), ibex, nyala, birds, and more in national parks.

Lake Tana (monasteries), Hawassa (lakeside vibe), Ziway, and the Rift Valley chain.

Yes—especially in rainy season when flow is strongest. Combine with Bahir Dar monasteries.

Yes—city tours, historical circuits, trekking, birding, coffee routes, and cultural tours are widely offered.

Yes at markets and with artisans; be friendly and fair.

Coffee, hand-woven scarves (netela), baskets, carvings, paintings, spices, and jewelry.

Absolutely—vacuum-sealed beans are widely available. Check your country’s customs rules.

Mostly in malls and upscale shops; bring cash for markets and small vendors.

Licensed banks and transfer services operate in major cities; bring ID and recipient details.

Many open Saturday mornings; Sunday closures are common. Hours vary.

10% is appreciated where service charge isn’t included; round up for small cafes.

Yes in select malls/hotels in Addis; selection is smaller than in larger global hubs.

Yes at the international airport; options vary by terminal and time of day.

Growing quickly in cities; delivery coverage varies. For gifts and experiences, local markets are still king.

100 Tax FAQs – By YebboTax

100 Tax FAQs – YebboTax

100 Tax Questions & Answers – YebboTax

Your expandable, mobile-friendly client FAQ. Tap a question to view the answer.

Q1: What documents do I need to bring for tax preparation?

Bring all W-2s, 1099s, Social Security statements, mortgage statements, student loan interest forms, last year’s return, proof of deductions (receipts, mileage logs), and identification (photo ID and Social Security card).

Q2: When is the tax filing deadline?

Usually April 15. If it falls on a weekend or holiday, the deadline moves to the next business day.

Q3: What happens if I miss the filing deadline?

You may face late filing penalties and interest. If you’re owed a refund, there’s no penalty, but you must file within 3 years to claim it.

Q4: Can you file my taxes electronically?

Yes. E-filing is secure and the fastest way to process returns and refunds.

Q5: How long does it take to get my refund?

If you e-file and choose direct deposit, refunds typically take 7–21 days. Paper filing takes longer.

Q6: What if I owe taxes—when is the payment due?

Taxes are due on the filing deadline (April 15). Paying late results in penalties and interest.

Q7: Can you file for an extension?

Yes, file Form 4868 for a 6-month extension to file. It does not extend the time to pay.

Q8: Do I still need to file taxes if I earned very little?

If your income is below the IRS filing threshold, you may not be required to file—but filing could get you a refund or credits.

Q9: Do I need to file taxes if I live abroad?

Yes. U.S. citizens and green card holders must file regardless of where they live. You may qualify for the Foreign Earned Income Exclusion or Foreign Tax Credit.

Q10: How do I check the status of my refund?

Use the IRS “Where’s My Refund?” tool at IRS.gov or call 1-800-829-1954.

Q11: Do I need to report cash income?

Yes. All income, including cash, must be reported to the IRS.

Q12: What if I have multiple W-2s?

You must report all W-2s. The IRS receives copies from employers, so leaving one out can trigger a notice.

Q13: How do I report 1099 income?

Report Form 1099-NEC income on Schedule C (self-employment). Certain 1099s may go on Schedule E/F depending on type.

Q14: I drive for Uber/Lyft—how is that income reported?

You’ll receive a 1099; report ride earnings, tips, and fees on Schedule C. Deduct eligible expenses (mileage, fees, phone, etc.).

Q15: Do I have to report tips?

Yes. Tips are taxable income and must be reported.

Q16: What if I do freelance or gig work?

You must report all income, even if you don’t receive a 1099. Track expenses to offset income.

Q17: How do I report rental income?

Report rental income and expenses on Schedule E. Deduct mortgage interest, repairs, insurance, and depreciation.

Q18: How is Social Security income taxed?

It may be taxable depending on your combined income. Up to 85% may be taxable if you exceed certain thresholds.

Q19: Do I need to report unemployment benefits?

Yes. Unemployment benefits are taxable and reported on Form 1099-G.

Q20: Is disability income taxable?

It depends. Private disability insurance benefits may be taxable; Social Security disability (SSDI) may be partially taxable depending on income.

Q21: Should I take the standard deduction or itemize?

Choose whichever results in the lower tax. The standard deduction is fixed; itemizing requires receipts for mortgage interest, taxes, medical, donations, etc.

Q22: What are common deductions I might qualify for?

Medical expenses, mortgage interest, state and local taxes (subject to limits), charitable donations, student loan interest, and retirement contributions.

Q23: Can I deduct medical expenses?

Yes, the portion that exceeds 7.5% of your adjusted gross income (AGI) if you itemize.

Q24: Can I deduct mortgage interest?

Yes, generally on up to $750,000 of qualifying home acquisition debt (subject to rules).

Q25: Can I deduct student loan interest?

Yes, up to $2,500 per year if you meet income limits; this is an above-the-line deduction.

Q26: What education credits are available?

The American Opportunity Credit (AOC) for the first four years of college and the Lifetime Learning Credit (LLC) for ongoing education.

Q27: Can I claim child care expenses?

Yes, via the Child and Dependent Care Credit for qualifying care needed to work or look for work.

Q28: What is the Child Tax Credit?

A credit up to $2,000 per qualifying child (subject to phase-outs); partially refundable under current law.

Q29: Can I deduct charitable donations?

Yes, if you itemize and donate to qualified charities. Keep receipts and acknowledgement letters for $250+ donations.

Q30: What is the Earned Income Tax Credit (EITC)?

A refundable credit for low- to moderate-income workers; eligibility depends on income, filing status, and number of qualifying children.

Q31: What expenses can I deduct as a small business owner?

Ordinary and necessary expenses: supplies, equipment, software, rent, utilities, insurance, advertising, professional fees, and mileage.

Q32: Do I need to file quarterly taxes?

Yes, if you expect to owe at least $1,000 for the year after withholding and credits. Pay estimated taxes quarterly.

Q33: How do I track mileage for business use?

Keep a contemporaneous log (date, purpose, start/end odometer). You may use the IRS standard mileage rate or actual expenses.

Q34: Can I deduct my home office?

Yes, if used regularly and exclusively for business. Use simplified square-foot method or actual expenses.

Q35: What records should I keep for my business?

Receipts, invoices, bank and credit statements, payroll records, mileage logs, and tax filings. Keep at least 3–7 years.

Q36: How are business meals and entertainment deducted?

Business meals are typically 50% deductible (with proper documentation). Entertainment expenses are generally not deductible.

Q37: Can I deduct startup costs?

Yes, deduct up to $5,000 in the first year (subject to phase-outs) and amortize the remainder over 15 years.

Q38: Do I need a separate bank account for my business?

Yes. Separating finances improves recordkeeping and protects liability positions.

Q39: How do I pay myself from my business?

Sole prop/LLC: owner’s draws. S-corp/C-corp: reasonable salary via payroll; dividends/distributions may apply.

Q40: Should I form an LLC or stay sole proprietor for tax purposes?

An LLC offers legal protection; tax treatment can be sole prop, partnership, or S-corp. Best choice depends on income, risk, and goals.

Q41: How are stocks taxed?

Sales trigger capital gains: short-term taxed at ordinary rates; long-term at 0%, 15%, or 20% depending on income.

Q42: What’s the difference between short-term and long-term capital gains?

Short-term: held < 1 year; taxed as ordinary income. Long-term: held > 1 year; taxed at preferential rates.

Q43: Do I pay taxes on dividends?

Yes. Qualified dividends get lower capital-gains rates; nonqualified dividends are taxed as ordinary income.

Q44: How are retirement accounts taxed?

Traditional IRA/401(k): tax-deferred growth; withdrawals taxed. Roth IRA/401(k): tax-free qualified withdrawals.

Q45: What is the penalty for withdrawing early from retirement accounts?

Generally 10% penalty plus income tax if withdrawn before age 59½, with some exceptions.

Q46: Do I pay taxes on crypto transactions?

Yes. Selling, trading, or spending crypto is a taxable event; report gains/losses.

Q47: How do I report real estate sales?

Report on Form 8949 and Schedule D. You may exclude up to $250,000 ($500,000 MFJ) of gain on a primary residence if tests are met.

Q48: Do I need to pay taxes on interest income?

Yes, interest from banks, CDs, and bonds is taxable and reported on Form 1099-INT.

Q49: How are mutual funds taxed?

You may owe tax annually on dividends and capital gains distributions, even if you reinvest them.

Q50: What is cost basis, and why does it matter?

Cost basis is what you paid for an asset (plus adjustments). It determines your gain or loss when you sell.

Q51: Who qualifies as a dependent?

A child or qualifying relative who meets IRS tests for relationship, age, residency, support, and income.

Q52: Can both parents claim the same child?

No. Only one parent can claim a child per year. Tie-breaker rules usually favor the custodial parent.

Q53: Can I claim my elderly parent as a dependent?

Yes, if you provide more than half their support and they meet income limits and residency tests.

Q54: How does divorce affect taxes?

Filing status may change; only the custodial parent typically claims dependents unless Form 8332 is used.

Q55: What if I pay child support?

Child support is not deductible by the payer and not taxable to the recipient.

Q56: Is alimony taxable?

For divorces finalized after 2018, alimony is neither deductible by the payer nor taxable to the recipient.

Q57: Can I claim foster children?

Yes, if they lived with you more than half the year and meet other dependency tests.

Q58: What if my child has a part-time job?

You may still claim them if they meet dependency tests; the child may need to file a return for their income.

Q59: Can I claim adoption expenses?

Yes, up to an annual per-child limit (subject to income phase-outs).

Q60: What happens if both parents claim the same child?

The IRS applies tie-breaker rules. Usually the child goes to the parent with whom they lived longer during the year.

Q61: Do I have to file a state return?

Yes, if your state has an income tax and you meet its filing thresholds.

Q62: What if I worked in more than one state?

You may need to file in multiple states; credits often prevent double taxation.

Q63: How do state tax refunds affect federal taxes?

Refunds may be taxable if you itemized deductions the prior year and benefited from the deduction.

Q64: Are state taxes deductible?

Yes, state and local income/sales/property taxes are deductible if you itemize, subject to the SALT cap.

Q65: What if I moved during the year?

You may file as a part-year resident in both the old and new states.

Q66: Do I need to pay city taxes?

Some cities (e.g., NYC) impose income taxes; check local rules.

Q67: How does living in a no-income-tax state affect me?

You won’t file a state income tax return, but sales and property taxes still apply.

Q68: Can I deduct property taxes?

Yes, if you itemize, but within the overall SALT deduction limit.

Q69: What is SALT deduction limit?

The total deduction for state and local taxes is capped by federal law (commonly referenced as $10,000).

Q70: Do I have to pay estimated state taxes?

Yes, if you expect to owe over the state’s threshold after withholding and credits.

Q71: What triggers an IRS audit?

Common flags include large/unusual deductions, unreported income, mismatched forms, and certain business losses.

Q72: How long should I keep my tax records?

Keep at least 3 years; up to 7 years for certain loss claims; indefinitely for records related to property basis.

Q73: What do I do if I receive an IRS letter?

Read it carefully and respond by the deadline. Contact your tax professional for guidance.

Q74: What if I can’t pay the IRS in full?

Consider an installment agreement, temporary delay, or an Offer in Compromise if eligible.

Q75: Can I set up a payment plan with the IRS?

Yes. Apply online or file Form 9465 to request an installment agreement.

Q76: What if I made a mistake on my tax return?

File Form 1040-X to amend your return and correct errors or omissions.

Q77: How do amended returns work?

They replace parts of your original return. You’ll explain changes and include revised forms/schedules.

Q78: How far back can the IRS audit?

Generally 3 years; up to 6 years for substantial understatements; no limit for fraud or non-filing.

Q79: What if I get audited?

Provide documentation and explanations. A tax pro can represent you before the IRS.

Q80: Will using a tax preparer reduce my chance of audit?

No guarantees, but accurate, well-documented returns generally reduce audit risk.

Q81: How do I get direct deposit for my refund?

Provide your routing and account numbers on your return or refund form.

Q82: Can I split my refund into multiple accounts?

Yes, use Form 8888 to split your refund across accounts or buy savings bonds.

Q83: What if my refund is delayed?

Check IRS “Where’s My Refund?”. Delays can be caused by errors, identity checks, or amended returns.

Q84: Can the IRS take my refund for debts?

Yes. Refunds can be offset for federal/state taxes, child support, and certain federal debts.

Q85: How do I pay taxes owed?

Use IRS Direct Pay, EFTPS, check/money order, or a debit/credit card (fees apply).

Q86: Can I use a credit card to pay taxes?

Yes, via approved processors, but convenience fees apply.

Q87: Will I be charged interest on late payments?

Yes. Interest and penalties accrue until the balance is paid.

Q88: Can I apply my refund to next year’s taxes?

Yes. You can apply part or all of your refund to next year’s estimated taxes.

Q89: Can I track my state refund?

Most states offer online tools similar to IRS “Where’s My Refund?”. Check your state’s tax website.

Q90: What is an IRS offset?

When the IRS reduces your refund to pay certain debts you owe; you’ll receive a notice explaining the offset.

Q91: How are scholarships taxed?

Amounts used for tuition and required fees/books are tax-free. Room, board, and stipends are taxable.

Q92: How do I file taxes if I’m in the military?

Military pay is taxable, but special rules apply for combat zones and certain allowances.

Q93: What if I inherited money or property?

Inheritance itself is not taxed federally, but income it produces is taxable. Your basis may step up to fair market value.

Q94: Do I have to pay taxes on gifts I received?

No. The giver may need to file a gift tax return if gifts to one person exceed the annual exclusion.

Q95: How are gambling winnings taxed?

Winnings are fully taxable. You may receive Form W-2G and must report all winnings.

Q96: Can I deduct gambling losses?

Yes, if you itemize, up to the amount of gambling winnings. Keep detailed records.

Q97: How are foreign bank accounts reported?

File FBAR (FinCEN 114) if aggregate foreign account balances exceed $10,000 at any time during the year.

Q98: What if I’m a non-resident alien?

You may need to file Form 1040-NR for U.S. source income; treaty benefits may apply.

Q99: Do I need to file if I live overseas?

Yes. U.S. citizens must file regardless of residence. Extensions and exclusions may apply.

Q100: How do foreign tax credits work?

They provide a dollar-for-dollar credit for foreign taxes paid on the same income to mitigate double taxation.

100 FAQs for Travelers to Ethiopia | YebboTravel

100 FAQs for Travelers to Ethiopia | YebboTravel 100 FAQs for Travelers to Ethiopia Quick answers about visa...

Do you need Ethiopian Power of Attorney where your agent can preform several crucial tasks on your behalf? Such as adoption proceedings, buying movable or immovable properties, paying tax, represent you in governmental and public offices and several others tasks with our your physical presence? If your answer is yes get the Ethiopian Power of Attorney or YEBBO now on sale

Shop Amazon