Income Tax terms starting with D

5 terms

1. deficit The result of the government taking in less money than it spends.
2. dependency exemption Amount that taxpayers can claim for a "qualifying child" or "qualifying relative". Each exemption reduces the income subject to tax.
3. Dependent A qualifying child or qualifying relative, other than the taxpayer or spouse, who entitles the taxpayer to claim a dependency exemption.
4. Direct Deposit A payment that is electronically deposited into an individual's account at a depository institution.
5. direct tax A tax that cannot be shifted to others, such as the federal income tax.