Income Tax terms starting with E

9 terms

  1. Earned Income Earned income is contrasted with investment income. It includes wages, salaries, honoraria, commission, professional fees, and other forms of compensation…
  2. Earned Income Credit (EIC) The earned income tax credit (EIC) reduces the income tax of that certain low-income taxpayers would otherwise owe.
  3. electronic filing (e-file) The transmission of tax information directly to the IRS using telephones or computers.
  4. electronic preparation Electronic preparation means that tax preparation software and computers are used to complete tax returns.
  5. Electronic Return Originator (ERO) The Authorized IRS e-file Provider that originates the electronic submission of an income tax return to the IRS.
  6. employee Works for an employer. Employers can control when, where, and how the employee performs the work.
  7. excise tax A tax on the sale or use of specific products or transactions.
  8. exempt (from withholding) Free from withholding of federal income tax. A person must meet certain income, tax liability, and dependency criteria.
  9. exemptions Amount that taxpayers can claim for themselves, their spouses, and eligible dependents. There are two types of exemptions-personal and dependency.