Copyrights and related rights for article metadata waived via CC0 1.0 Universal (CC0) Public Domain Dedication. DOAJ is committed to keeping its services free of charge, including being indexed, and its journal purchase data freely available. The developer, Apple, indicated that the app’s privacy practices may include handling of data as described below.

Recently-added journals

• Choose what information you want to enable for suggestions.
• As soon as they’re accepted, these journals are displayed on our website freely accessible to everyone.
• DOAJ is committed to keeping its services free of charge, including being indexed, and its data freely available.
• Journaling suggestions make it easy to remember your daily experiences—so you can add them to your journal and never have to start with a blank page.

DOAJ’s team of managing editors, editors, and volunteers work with publishers to index new journals. As soon as they’re accepted, these journals are displayed on our website freely accessible to everyone. DOAJ is a unique and extensive index of diverse open access journals from around the world, driven by a growing community, and is committed to ensuring quality content is freely available online for everyone.

DOAJ as an information retrieval system: A LIS students’ perspective

• Choose what information you want to enable for suggestions.
• DOAJ is committed to keeping its services free of charge, including being indexed, and its data freely available.
• DOAJ’s team of managing editors, editors, and volunteers work with publishers to index new journals.
• As soon as they’re accepted, these journals are displayed on our website freely accessible to everyone.
• Journaling suggestions make it easy to remember your daily experiences—so you can add them to your journal and never have to start with a blank page.

Capture and write about the details of everyday moments and special events using photos, videos, audio recordings, places, your state of mind, and more. Journaling suggestions make it easy to remember your daily experiences—so you can add them to your journal and never have to start with a blank page. And with the new Insights view with streaks it’s easy to keep track of your journaling goals.Get started writing with journaling suggestions• Choose from suggested moments to start your journal entry with intelligently grouped outings, photos, workouts, media and more. • Get a writing prompt to guide your insights.• Find inspiration with reflection prompts to focus on gratitude, kindness, purpose, and more.• Journaling suggestions are created using on-device intelligence based on how you use your iPhone. Choose what information you want to enable for suggestions. Preserve powerful memories in rich detail• Illustrate your entries with the photos, videos, and places that tell your story.• Record your voice directly into your journal and have it transcribed automatically, or record your surroundings to add context to your entry.

Find the amount of depreciation expense recorded for the current period on the income statement. Locate the current period’s property, plant, and equipment line-item balance on the balance sheet. Advance payments of the premium tax credit of $4,200 are made to the insurance company and you pay premiums of $4,500. On your 2024 tax return, you are allowed a premium tax credit of $3,600 and must repay $600 excess advance credit payments (which is less than the repayment limitation).

Types of Business Expenses

• Generally, a claim for refund must be filed within 3 years of the date the original return was filed, or within 2 years from the time the tax was paid, whichever date is later.
• Operating expenses are shorter-term expenses that are required to meet the ongoing operational costs of running a business.
• Contributions made by your employer to provide coverage for qualified long-term care services under a flexible spending or similar arrangement must be included in your income.
• You can include as a medical expense premiums you pay for Medicare Part D.
• This year, you paid medical expenses for your spouse, Kitt, who died last year.

The surgery to reconstruct the breast corrects a deformity directly related to the disease. The cost of the surgery is includible in the individual’s medical expenses. A lump-sum fee which includes education, board, and medical care—without distinguishing which part of the fee results from medical care—is not considered an amount payable for medical care. However, you can include charges for a health plan included in a lump-sum tuition fee if the charges are separately stated or can easily be obtained from the school. If, instead of removing the paint, you cover the area with wallboard or paneling, treat these items as capital expenses. Don’t include the cost of painting the wallboard as a medical expense.

Capitalizing an asset requires that the company spread the cost of the expenditure over the useful life of the asset. Normally, operating expenses are recorded in the income statements to determine the operating income after taking them out from gross profits. Operating expenses are the expenses incurred in the entity for its normal operational purposes and activities that generally include both the cost of products or services and sales & administrative expenses. Operating expenses are generally defined when identifying and assessing the theentity’ss operating profits. The key to business tax reporting and business expense deductibility is that expenses are «ordinary and necessary.» That’s the phrase the IRS uses to describe the costs of doing business.

Future Medical Care

Expenses directly influence financial performance by reducing revenue to determine profitability. On an income statement, also known as a profit and loss statement, expenses are subtracted from revenues. Managing expenses is important for maintaining financial health and boosting profitability. Effective expense management provides insights into spending patterns, aiding budgeting and forecasting. By controlling costs, individuals and businesses can strategically allocate resources and improve their financial bottom line. You sued this year for injuries you suffered in an accident last year.

Profit maximisation is the primary objective of the management of any business organisation. It can be achieved by increasing revenues and keeping expenses in check at the same time. Still, it can have serious repercussions if expenses are heavily cut. Now that we have gone through the basics of the term “expenses” in business and have understood its importance, let us have a look at the types of expenses that are present. There are two main types or categories of business expenses— operating expenses and non-operating expenses.

Expense: Definition, Types, and How It Is Recorded

In order to lower their tax burden, businesses are allowed to deduct tax-deductible expenses from their taxable income on their income tax returns. But the Internal Revenue Service (IRS) has strict rules about what costs businesses can write off. When it comes to running a company or a business, there are a lot of factors that come into play. One of the important ones is the buying and selling of assets that will help the business in its operations and will profit the company or business in one way or another. The cost of the assets which are bought by the company for the above purpose is expressed in the form of the company’s expenditure or expenses. In other words you can say that an expense is the cost of an asset which has been used by the company in its operations with a goal to raise revenues.

What is Accounts Receivable Collection Period? (Definition, Formula, and Example)

However, certain maintenance or personal care services provided for qualified long-term care can be included in medical expenses. See Maintenance and personal care services under Long-Term Care, earlier. Additionally, certain expenses for household services or for the care of a qualifying individual incurred to allow you to work may qualify for the child and dependent care credit. Generally, you don’t include the excess reimbursement in your gross income. However, gross income does include total payments in excess of $410 a day ($150,060 for 2024) for qualified long-term care services. You can’t include in medical expenses the cost of household help, even if such help is recommended by a doctor.

• Buying food, clothing, furniture, or an automobile is often referred to as an expense.
• The IRS uses the latest encryption technology to ensure that the electronic payments you make online, by phone, or from a mobile device using the IRS2Go app are safe and secure.
• Always protect your identity when using any social networking site.
• Don’t send tax questions, tax returns, or payments to the above address.
• Locate the current period’s property, plant, and equipment line-item balance on the balance sheet.
• It excludes expenses incurred by the entire company for selling and administration, as well as interest charges and losses on unusual goods.

Some definition of expenses common examples of costs are employee salaries, advertising, rent, utilities, taxes, and supplies. All of these costs are reported on the income statement at the end of an accounting period. Depending on the financial statement format, the costs might be categorized in different subcategories like selling and general administrative. Regardless how they are categorized, the total expenses are calculated and subtracted from the total revenues to calculate the net income for the period.

Psychiatric Care

The common expenses that a business has to handle include the payments to suppliers, employee wages, factory leases, and equipment depreciation. The expenses that are tax-deductible can be added by the businesses or companies on their income tax returns to lower their taxable income and tax liability. However, not all expenses are deductible and it is important to know that businesses cannot claim their personal, non-business expenses as business deductions. Generally, only the amount spent for nursing services is a medical expense.

You have diabetes and use a blood sugar test kit to monitor your blood sugar level. You can include the cost of the blood sugar test kit in your medical expenses. Amounts paid to buy and install special plumbing fixtures for a person with a disability, mainly for medical reasons, in a rented house are medical expenses. This publication also explains how to treat impairment-related work expenses and health insurance premiums if you are self-employed.

However, you may be able to include certain expenses paid to a person providing nursing-type services. For more information, see Nursing Services, earlier, under What Medical Expenses Are Includible. Also, certain maintenance or personal care services provided for qualified long-term care can be included in medical expenses. For more information, see Long-Term Care, earlier, under What Medical Expenses Are Includible.

You are treated as paying $5,100 ($8,700 less the allowed premium tax credit of $3,600) for health insurance premiums in 2024. You can include in medical expenses the cost of medical care in a nursing home, home for the aged, or similar institution, for yourself, your spouse, or your dependents. This includes the cost of meals and lodging in the home if a principal reason for being there is to get medical care.

You can deduct your expenses for the reader as business expenses. If you are self-employed, deduct the business expenses on the appropriate form (Schedule C, E, or F) used to report your business income and expenses. Following is a list of some items that you can’t include in figuring your medical expense deduction. If you are covered under social security (or if you are a government employee who paid Medicare tax), you are enrolled in Medicare Part A. The payroll tax paid for Medicare Part A isn’t a medical expense.

The tax wedge for both single and married workers with children stands at 39%, indicating that Türkiye does not provide meaningful tax relief based on family status. Despite these already high levels, the tax wedge increased by 0.9 percentage points in 2024, further squeezing real disposable incomes. The OECD average in the same category was 25.7%, underscoring the disparity between Türkiye and other members. The tax wedge increased in 22 countries and fell in 14, for a decrease in the OECD average from 36.2 to 36.1. Although the U.S. tax wedge has consistently been below the OECD average, it is now even further below. It is also important to point out that the tax burden of workers varies based on family composition.

• The new OECD analysis focuses on cross-country comparisons of “tax incidence on labor,” defined as the total labor taxes paid by both employees and employers, minus family benefits, as a percentage of labor costs.
• The average employer-side payroll tax burden in the OECD is higher at 14.3 percent.
• It is also interesting to note that even though Denmark has low payroll taxes, its government still places a relatively high tax burden on average workers through higher individual income taxes (an effective rate of 35.8 percent).
• Fortunately, the OECD has done all the hard yards, with decades of work analysing the “tax wedge” – the proportion of labour cost paid in tax for the average worker.
• Income taxes in most countries, including the U.S., are progressive, but even average-wage workers end up paying about one-third of their wages in taxes.

The following graph shows the OECD countries with the largest increases and oecd income tax wedge chart decreases in their respective tax wedges. Although the tax wedge has changed quite substantially in some countries over time, the average OECD tax burden on labor has dropped just 1.4 percentage points over the past two decades. In 2000, the average OECD tax wedge was 36.2 percent, compared to 34.8 percent in 2023. Between 2021 and 2023, the average OECD tax burden increased slightly by 0.2 percentage points. This slight increase shows the importance of indexing the income tax to inflation to avoid bracket creep.

The approach does not, for instance, take account of the potential returns that may be generated by mandatory pension contributions. 13 Returns perceived as too low will increase the tax character of these contributions. 14  An important role is also played by the extent to which contributors trust the pension system. Crucial factors here are the sustainability and credibility of the pension system.

OECD tax rates

10 Here, “average wage” refers to total pre-tax wages of full-time workers divided by the number of full-time workers. Discover the highlights of the annual publication that provides details of taxes paid on wages in OECD countries. This year’s edition focuses on the impact of recent inflation on labour taxation in the OECD and how countries adjust their tax systems in response. The cash benefits that are considered in the Taxing Wages publication are those universally paid to workers in respect of dependent children between the ages of six to eleven inclusive. In-work benefits that are paid to workers regardless of their family situation are also included in the calculations.

Box 2: Indexation of labour taxation and benefits in OECD countries

The burden of wage taxes in Germany, at 15 %, is more in the middle of the range and less significantly above the OECD average of 14 %. The number is derived by multiplying the OECD measure of the U.S. average labor cost of $55,457 by 91.9 percent (1 minus 8.1 percent). New Zealand provided the largest relative reduction of taxes for families with children compared to single, childless workers. The total tax burden of a married couple with two children in New Zealand (4.9 percent) was 72 percent lower than the 17.6 percent total tax burden on a single, childless worker in 2015. The countries with the lowest combined payroll tax burdens were Australia (5.6 percent), Denmark (.8 percent), and New Zealand (0 percent).

The U.S. Tax Burden on Labor, 2019

A closer look at the OECD’s tax wedge on labour, however, reveals a fairly mixed picture. If that person factors this into their considerations, the pension contribution dampens their incentives to work to a lesser degree. A clear and reliable link between contributions and benefits is important in this regard. The tax wedge on labour – i.e. the burden of taxes and social security contributions on labour income – is a frequently discussed topic. A large tax wedge reduces incentives to work, thus potentially exacerbating the challenges an economy faces from skilled labour shortages and demographic ageing.

For this reason, the approach likewise takes into account only the fundamental pension systems (in Germany, for example, only the statutory pension insurance scheme). The simple approach of comparing the tax/benefit position for eight model families avoids many of the conceptual and definitional problems involved in more complex international comparisons of tax burdens and transfer programmes. The country whose workers paid the largest proportion of their total tax bill through their employer payroll taxes was Estonia. Their 25.3 percent employer-side payroll tax was 64.7 percent of their total tax burden in 2015. The 31.7 percent tax wedge for a U.S. worker represents a $9,167 average individual income tax bill and an $8,391 average payroll tax bill for a total average tax bill of about $17,558. The first tax is a 12.4 percent tax which is used to fund Social Security (Table 2).

Trump’s Tariff Proposals Would Raise Tariff Rates to Great Depression-Era Levels

• For other countries things are more nuanced, with some surprising countries (Germany!) becoming lower tax than the UK once kids are in the picture.
• The EFSA and ECDC’s One Health report “Taxing Wages 2024” reveals that effective tax rates on labor income have increased in most OECD countries, with the post-tax income of single workers earning the average wage falling in 21 of the 38 OECD countries.
• And employee payroll taxes accounted for a larger share of the tax burden on labor than employer payroll taxes in seven OECD countries—Chile, Germany, Hungary, Israel, Lithuania, Poland, and Slovenia.
• The amount of income tax paid typically also depends on whether the taxpayer is filing as single or as a family, as most countries allow for some targeted tax relief for families with children.
• The OECD average tax wedge for families is 26.6 percent, compared to the 36.1 percent average tax wedge for single workers.

We also reference original research from other reputable publishers where appropriate. In order to include Belgium, France and Sweden, only two earnings levels are included for these countries. For most of the countries, the earnings levels taken into account here (up to one-and-a-half times average earnings) are below the contribution assessment ceilings.

It represented at least one-third of labour costs in Austria, the Czech Republic, France and Germany. L Presenting a brief analysis of the net personal average tax rate for a single average worker across OECD countries for 2022. In 2000, the average OECD tax wedge was 36.4 percent, compared to 34.6 percent in 2020. The highest tax wedge for one-earner families with two children at the average wage in 2018 was in France (39.4%). Austria, Belgium, Finland, Greece, Italy, Sweden and Turkey also had tax wedges over 37%. For this family type, New Zealand had the lowest tax wedge (1.9%), followed by Chile (7.0%) and Switzerland (9.8%).

In most countries, the increase in labor taxation has been primarily driven by the increase in personal income tax. While real wages fell in 18 OECD countries, nominal wages rose in 37 of the 38 OECD countries, as inflation remained above historical levels. In the absence of automatic indexation of tax systems in many OECD countries, high inflation tends to increase workers’ tax liabilities by pushing them into higher tax brackets and eroding the value of the tax deductions and cash benefits they receive. The variation is based on how frequently an individual employer’s workers receive unemployment benefits.

It might be easier to understand the median tax burden of American taxpayers instead. Half of all taxpayers would pay less than a median figure, and half would pay more. During this sudden hike in taxes, Bill and other employees might not find it convenient to work as an employee and they might start looking for better modes of earning their bread and butter.

A more family-friendly system

This category includes metrics such as population growth rate, age structure, gender balance, and urbanization. There are also articles covering factors such as migration, fertility rates, and healthcare. Economics is the study of how societies allocate and manage resources to meet human needs and wants. This category includes metrics such as gross domestic product (GDP), inflation, unemployment, and international trade. Other factors such as income distribution, government policies, and economic growth potential are also included. Crime and safety are important factors that can impact social, economic, and political stability.

8 Although the U.S. tax wedge has consistently been below the OECD average, it is now even further below. For example, a 40% tax wedge means that for every €100 paid by the employer, only €60 ends up in the employee’s pocket. In these two countries, a single rate PIT applies to all levels of taxable income. Reflecting this trend, the government’s income tax revenues doubled in the first half of 2025 compared to the same period of 2024, rising by approximately 96.5% to ₺1.15 trillion ($46.64 billion). The following chart, using OECD data, shows that the U.S. tax wedge fell by 2.19 percentage points in 2018, from 31.8 in 2017 to 29.6 percent.

An international comparison of the tax wedge on labour: the difference between pension contributions and taxes

The cause of this decrease in the U.S. tax wedge was the Tax Cuts and Jobs Act (TCJA), which reduced individual income tax rates beginning in 2018, lowering the tax burden on labor. After accounting for sales taxes, which reduce the purchasing power of earnings, the tax wedge in the United States is 31.5 percent. Results reported include the marginal and average tax burden for one- and two-earner households, and the implied total labour costs for employers.

Due to rounding, the changes in tax wedge in column (2) may differ by one hundredth of a percentage point from the sum of columns (3)-(6). Education is the process of acquiring knowledge, skills, values, and attitudes through formal or informal means. This category includes metrics such as literacy rates, enrollment rates, teacher-to-student ratio, and educational attainment. Other metrics like education spending, curriculum quality, and technological readiness are also included.