Income Tax terms starting with T

19 terms

  1. tariff A tax on products imported from foreign countries.
  2. tax avoidance An action taken to lessen tax liability and maximize after-tax income.
  3. tax code The official body of tax laws and regulations.
  4. Tax Credit A tax credit is an amount you can subtract from the tax you would otherwise owe.
  5. tax cut A reduction in the amount of taxes taken by the government.
  6. tax deduction An amount (often a personal or business expense) that reduces income subject to tax.
  7. tax evasion A failure to pay or a deliberate underpayment of taxes.
  8. tax exemption A part of a person's income on which no tax is imposed.
  9. tax liability (or total tax bill) The amount of tax that must be paid. Taxpayers meet (or pay) their federal income tax liability through withholding, estimated tax payments, and payments…
  10. tax preparation software Computer software designed to complete tax returns. The tax preparation software works with the IRS electronic filing system.
  11. tax shift The process that occurs when a tax that has been levied on one person or group is in fact paid by others.
  12. tax-exempt interest income Interest income that is not subject to income tax. Tax-exempt interest income is earned from bonds issued by states, cities, or counties and the District…
  13. taxable interest income Interest income that is subject to income tax. All interest income is taxable unless specifically excluded.
  14. taxes Required payments of money to governments that are used to provide public goods and services for the benefit of the community as a whole.
  15. telephone tax refund Taxpayers are eligible to file for refunds of all excise tax they have paid on long-distance service billed to them after Feb. 28, 2003.
  16. tip income Money and goods received for services performed by food servers, baggage handlers, hairdressers, and others.
  17. transaction taxes Taxes on economic transactions, such as the sale of goods and services. These can be based on a set of percentages of the sales value (ad valorem-sales…
  18. transmit To send a tax return to the IRS electronically. Tax returns prepared on paper can be sent through the mail.
  19. Transmitter Sends the electronic return data directly to the IRS.