Income Tax Return Services

Income Tax Services

Click here to edit subtitle

Blog

Tax Terms

Posted on December 4, 2012 at 10:40 PM

Did you know that the following terms are involved in your Income Tax Return preparation?


Gross Income.- Is total worldwide income received in the form of money, property, or services that is subject to tax. The amount of a taxpayer's gross income is one of the factors used to determine wheter the taxpayer needs to file a return.


Adjusted Gross Income ( AGI ).- Adjusted gross income equals gross income less reductions that are allowble regardless of whether personal deductions are itemized.


Standard deduction.- Is an amount of income not subject to tax and varies based on the taxpayer's filling status.


Credits.- Reductions of tax liability allowed for various purposes to taxpayers who meet the qualifications. Some credits are refundable; that is, the IRS will send the taxpayer a refund for any amount in excess of tax liability. Some credits are non refundable; that is, they can only reduce tax liability to zero. Some credits may be carried to other tax years.


Dependent.- An individual whose personal exemption may be claimed on another person's income tax return. To be claimed as a dependent, a person must meet certain test.


Exemption.- An amount allowed by law as a reduction of income that would otherwise be taxed.


Federal Income Tax Withheld.- The amount taken out of income by the payer and submitted to the IRS as an advance payment of the taxpayer's federal income tax.


Medicare Tax Withheld.- The medicare tax taken out of an employee's wages, or the same tax paid by a self-employed person on net self-employment income.


Social Security wages.- The employee's share of social security tax that was taken out of the employee's pay and submitted along with the employer's share to the IRS by the employer.


State or Local Income Tax Withheld.- The amounts taken out of income by the payer and submitted to the state or local taxing authority as an advance payment of the taxpayer's state or local income tax.


Tax Liability.- The amount of total tax due the IRS after any credits and before taking into account any advance ( withholding, estimated payments, etc. ) made by the taxpayer.


Taxable Income.- Adjusted gross income less itemized deductions or the standard deduction, less allowable personal and dependent exemptions amounts. This term is also used to refer to income that is not exempt or excluded from taxation. For example, " Wages are taxable income, but gifts are not."




Categories: None

Post a Comment

Oops!

Oops, you forgot something.

Oops!

The words you entered did not match the given text. Please try again.

6 Comments

Reply Reminat
9:17 AM on April 22, 2019 
Ekstrakcja danych Warszawa wiadczy usugi przywracania dostpu do skasowanych danych po wszelakich wariantach uszkodze noników, jak: uszkodzenia logiczne typu wykasowanie danych. Wejd tutaj aby zapozna si z informacjami dotyczcymi odzyskiwania danych
Reply Arniemr
9:43 AM on October 9, 2019 
Hello. And Bye.
Reply EverettJaT
6:35 PM on November 12, 2019 
Hello. And Bye.
Reply AaronWEAGS
12:46 PM on January 16, 2020 
AliExpress Trends. best with aliexpress

Xiaomi mi 9 lite 6/64gb Youtube
The smartphone for extreme Blackview BV9900 Youtube
Buy HUAWEI mate 30 Pro

The entire catalog of goods by category in the online store AliExpress:

The best gifts for the new year 2019-2020
HOT goods up to 90% off
HOME APPLIANCES New year, new home! Save up to 60%
CONSUMER ELECTRONICS The best of the best, up to 50% off!
TOY & HOBBIES Spread holiday cheer at up to 60% off
BEAUTE & HEALTH Glow up with year-end deals up to 60% off
PHONES & ACCESSORIES Up to 50% off 2019 best buys!
COMPUTER & OFFICE Up to 50% off on 2019 most useful gadgets!
CARS & MOTORCYCLES 50% off top trendy items for the road ahead

DACOM U7 TWS Bluetooth Headphones - Wireless Stereo Headphones
Q4yqbUqL1Zg
Great smartphone Xiaomi Redmi Note 8 Pro
lNCYxOu8dwA

GET CASHBACK UP TO 90%

Youtube channel for uplifting
Public VK AliExpress Trends. best with aliexpress
Reply MixNug
12:38 AM on February 3, 2020 
hi guys :). I am looking for help for me and my girl. i am from France
Reply Stephenbex
1:30 AM on February 14, 2020 
AliExpress Trends. best with aliexpress

PC with Aliexpress

On Valentine's Day, a bear of roses
Smartphone Oneplus 3T A3003
Xiaomi mi 9 lite 6/64gb Youtube
The smartphone for extreme Blackview BV9900 Youtube
Buy HUAWEI mate 30 Pro

The entire catalog of goods by category in the online store AliExpress:

The best gifts for the new year 2019-2020
HOT goods up to 90% off
HOME APPLIANCES New year, new home! Save up to 60%
CONSUMER ELECTRONICS The best of the best, up to 50% off!
TOY & HOBBIES Spread holiday cheer at up to 60% off
BEAUTE & HEALTH Glow up with year-end deals up to 60% off
PHONES & ACCESSORIES Up to 50% off 2019 best buys!
COMPUTER & OFFICE Up to 50% off on 2019 most useful gadgets!
CARS & MOTORCYCLES 50% off top trendy items for the road ahead

Xiaomi Redmi 8 Smartphone
XDKKerdsR8E
Vacuum cleaner Xiaomi ROIDMI NEX X20
2rX80h3d4W8

GET CASHBACK UP TO 90%

Youtube channel for uplifting
Public VK AliExpress Trends. best with aliexpress