The 1040 Form is the standard IRS form used by individuals to file their annual income tax returns. It includes sections for reporting income, deductions, credits, and other tax obligations.
1099-MISC is a tax form used to report various types of miscellaneous income to the Internal Revenue Service (IRS), essential for individuals and businesses, particularly those involved in self-employment.
An overview of the 1099-NEC form used for reporting nonemployee compensation in the United States, introduced in 2020 to simplify and distinguish it from other income types.
501(c)(3) is a section of the U.S. Internal Revenue Code that defines tax-exempt entities, typically used by qualified charities. This article elaborates on its definition, requirements, examples, and related terms.
Above-the-Line Deductions are specific deductions subtracted from your income before the calculation of Adjusted Gross Income (AGI). These deductions can significantly impact tax liability.
A comprehensive look at Abusive Tax Shelters, including historical context, types, key events, explanations, diagrams, importance, applicability, examples, related terms, comparisons, facts, stories, quotes, expressions, jargon, FAQs, references, and summary.
Accumulated Earnings Tax (AET) is a tax imposed on corporations that retain earnings beyond the reasonable needs of the business to prevent them from avoiding shareholder taxation on dividends.
A detailed explanation of the Actual Expense Method for vehicle-related expense deductions, including definitions, examples, and frequently asked questions.
An overview of the Additional Medicare Tax, a 0.9% tax on high earners' wages above specific thresholds designed to support Medicare funding.
A comprehensive look at Adjusted Gross Income (AGI), its significance in the USA, calculations, and related tax implications.
Comprehensive guide to understanding Adjusted Gross Income (AGI), its calculation, significance in tax filing, and key adjustments that influence your taxable income.
Adjusted Gross Income (AGI) represents an individual's total gross income after accounting for specific deductions, crucial in determining one's tax liability and tax bracket.
Adjusted Gross Income (AGI) represents your total gross income minus specific deductions, and is a key figure for tax calculations.
Adjustment items are specific items that need to be added back to taxable income when calculating Alternative Minimum Taxable Income (AMTI). These items are crucial for ensuring that taxpayers meet their minimum tax obligations.
A comprehensive guide to the Adoption Tax Credit, including its definition, eligibility, calculations, and historical context.
Advance Corporation Tax (ACT) was a prepayment of corporate tax that companies in the UK had to make on dividends paid to shareholders. It played a significant role in the tax regime until its abolition in 1999.
An Advance Ruling is a preliminary ruling by tax authorities, such as the IRS, on the tax implications of a proposed transaction before it is executed. This mechanism provides taxpayers with clarity and certainty on the tax treatment of specific actions.
An in-depth exploration of Advance Rulings in the context of tax laws, including historical context, applications, types, key events, and practical examples.
Understanding the concept of Age Allowance, its historical context, types, importance, applicability, and more.
An in-depth look into Agricultural Property Relief, an inheritance tax relief available on the transfer of agricultural property under certain conditions, including rates, key considerations, examples, and more.
A comprehensive guide to understanding alimony payments, including their historical context, types, key events, and tax implications. This article covers important considerations, related terms, and frequently asked questions to provide a full understanding of alimony payments in the USA.
The American Opportunity Credit (AOTC) is a partially refundable tax credit designed to assist taxpayers in covering education costs for the first four years of post-secondary education.
The American Opportunity Credit is a tax credit for qualified education expenses paid for an eligible student for the first four years of higher education.
A detailed explanation of the American Opportunity Tax Credit, its eligibility criteria, benefits, and how it compares to similar education credits like the Lifetime Learning Credit.
An in-depth analysis of Alternative Minimum Tax (AMT) rates, their calculation, historical context, importance, applicability, and related terms.
An in-depth look at AMTI, its calculation, significance in tax law, and its impact on taxpayers.
A comprehensive overview of the Alternative Minimum Taxable Income (AMTI), including its definition, calculation, and implications.
Understanding the concept of Annual Allowance, its historical context, importance, and implications in managing ISAs effectively.
Understanding the Annual Exclusion Limit on Gifting Without Incurring Gift Tax
Comprehensive coverage of the Annual Exemption under inheritance tax legislation, its historical context, applicability, key considerations, and practical examples.
Comprehensive coverage on the Annual Gift Exclusion, its historical context, key considerations, formulas, examples, related terms, and FAQs.
An Appeals Conference is a meeting with an IRS Appeals Officer to discuss and potentially resolve a taxpayer's disagreements.
A comprehensive guide to Additional Voluntary Contributions (AVC) in the context of pensions, including their importance, types, benefits, and considerations.
The average tax rate measures the percentage of total income or another tax base that is paid in taxes, offering insights into an individual’s or business’s tax burden.
A comprehensive guide to understanding Badges of Trade, their importance, historical context, and applications in determining trading activities for tax and legal purposes.
The standard rate at which tax is deducted from payments under the Construction Industry Scheme (CIS), typically set at 20%.
The rate of income tax that applies to all taxable non-saving incomes above a lower limit and below an upper limit, which is 20 per cent for most UK taxable income in 2011--12.
An in-depth look at Basis in tax, including definitions, types, examples, historical context, and applicability.
A comprehensive examination of the basis upon which personal income or business profits are assessed in the UK for each fiscal year.
A detailed exploration of benefits other than cash arising from employment, including historical context, valuation rules, reporting requirements, and key considerations.
A comprehensive overview of the concept of 'business' for value-added tax purposes, its various implications within the UK Taxes Acts, and the broader economic activities it encompasses.
Business Rates are the local tax paid by businesses in the UK, based on the local valuation of the property and the Uniform Business Rate set by central government.
Comprehensive guide on Business Use of Home, including criteria, benefits, considerations, tax deductions, and best practices for home-based businesses.
An in-depth exploration of the concept of C/F (Carried Forward), its significance in various domains such as Accounting, Finance, and Taxation. Detailed explanations, historical context, importance, applicability, examples, related terms, and FAQs.
A comprehensive guide to understanding the Calendar Tax Year, a 12-month period from January 1 to December 31, utilized for taxation purposes.
Comprehensive exploration of Capital Gain Tax, covering historical context, types, key events, formulas, applicability, examples, related terms, interesting facts, quotes, FAQs, and more.
A comprehensive look at Capital Gains Tax, its historical context, key events, types, formulas, and more.
Learn about Capital Gains Tax (CGT), a tax levied on the profit made from the sale of assets. Understand its definition, types, considerations, applications, and more.
Comprehensive guide on Capital Transfer Tax (CTT), covering historical context, types, key events, formulas, importance, examples, related terms, and more.
A detailed explanation of tax provisions allowing individuals and businesses to apply unused tax credits to prior or future tax years to optimize tax liability management.
A taxpayer who reports income in the year it is received and expenses in the year they are paid.
An in-depth exploration of Capital Gains Tax (CGT), its history, types, key events, and importance in finance and investments.
An in-depth exploration of chargeable events in taxation, including historical context, types, key events, and detailed explanations.
Understand how charitable deductions can reduce your taxable income when you contribute to qualifying charitable organizations.
Chief Counsel Advice (CCA) is issued by the IRS Office of Chief Counsel to provide written guidance and instructions on various tax-related matters.
An in-depth exploration of the Child Tax Credit (CTC), a tax credit designed to relieve the tax burden on families with dependent children.
The Clergy Housing Exclusion, also known as the parsonage allowance, refers to the tax exemption provided to members of the clergy for housing-related expenses.
A comprehensive explanation of click-through nexus, its historical context, implications, key events, and detailed descriptions. Understand its importance in e-commerce and tax regulation.
A detailed examination of the comparison between Married Filing Jointly (MFJ) and Married Filing Separately (MFS) tax statuses, including benefits, liabilities, and scenarios where one may be preferable over the other.
Corporation Tax is a tax charged on the total profits of a company resident in the UK arising in each accounting period. The rate of corporation tax depends on the level of profits of the company.
Council Tax is a UK local-government tax charged according to property valuation. It replaced the community charge in 1993--94 and is charged on the value of a domestic property as defined by a series of bands.
An in-depth look into the Council Tax system in the UK, its history, valuation bands, exemptions, and implications for homeowners and local authorities.
Detailed overview of Corporation Tax (CT), including its historical context, types, importance, key events, formulas, and related terms.
A comprehensive guide to understanding the Current-Year Basis (CYB) system, where taxes are calculated based on the income earned in the current year.
An insightful guide on the Currently Not Collectible Status (CNC), a temporary phase where the IRS refrains from active collection efforts due to financial hardship experienced by the taxpayer.
Deductibility refers to the eligibility of expenses to be subtracted from gross income for tax purposes, ultimately reducing taxable income.
An in-depth exploration of deductibility, the ability to reduce tax liability by deducting specific items from income, its historical context, key events, mathematical models, and much more.
Specific expenses that can be subtracted from gross income to reduce taxable income, including taxes, insurance premiums, and retirement contributions.
A comprehensive overview of deductions and credits, including their types, implications, key events, examples, considerations, and related terms.
Deductions at Source (DAS) is a method of tax collection where the payer of income deducts tax before disbursing the net amount to the recipient. This practice simplifies tax compliance and improves tax collection efficiency.
Deferral refers to the postponement of a tax obligation to a future period, allowing an individual or business to delay the payment of taxes until a later time. This concept is widely used in taxation, accounting, and financial planning.
Deferred Tax Liability (DTL) represents taxes owed in the future due to taxable temporary differences between the book value and tax base of assets and liabilities.
Deficiency in taxation refers to the amount by which a taxpayer’s tax liability exceeds the amount of tax reported on their return. It signifies the additional tax debt that the IRS claims is owed, above what the taxpayer originally reported.
An in-depth exploration of delinquent taxes, including definitions, examples, historical context, and applicable regulations.
A comprehensive explanation of the Dependent Tax Credit, its conditions, applicability, and examples.
A detailed examination of depreciable property, its importance in taxation, types, calculations, key events, examples, and related terms.
A comprehensive guide to understanding disallowed expenses in tax and accounting, including types, key events, explanations, importance, and related terms.
A comprehensive overview of the Domestic Production Activities Deduction (DPAD), which allowed eligible taxpayers to deduct a portion of their Qualified Production Activities Income (QPAI) but was repealed under the Tax Cuts and Jobs Act starting in 2018.
E-file is the process of electronically transmitting tax returns to the IRS, offering a faster, more secure, and efficient method for taxpayers and tax professionals.
Detailed Information on the Earned Income Credit, a U.S. tax benefit aimed at helping low-to-moderate-income workers, particularly those with children.
Learn the crucial differences between earned and unearned income, including their definitions, examples, and relevance to tax regulations such as the Kiddie Tax.
A detailed analysis of the Economic Substance Doctrine, which evaluates whether transactions have substantial economic purposes beyond tax benefits.
The distinct number issued by the IRS to EROs.
EFS (Electronic Filing System) at the IRS processes electronically filed tax returns, facilitating efficient, accurate, and secure tax submissions.
An Electronic Return Originator (ERO) is an authorized entity responsible for initiating the electronic submission of tax returns to the Internal Revenue Service (IRS), streamlining the filing process and improving accuracy.
Enrolled Agents (EAs) are tax experts in the United States, recognized by the Treasury Department for representing taxpayers in dealings with the Internal Revenue Service (IRS).
Comprehensive exploration of entertainment expenses, including historical context, key changes post-TCJA, and guidelines for modern applicability.
Understanding error or mistake claims by taxpayers for overpaid tax due to errors or omissions in returns or statements.
A comprehensive guide to Estate Duty, including its historical context, types, key events, and its role in finance and taxation.
A comprehensive overview of estate taxes, covering historical context, types, key events, explanations, models, charts, importance, applicability, examples, considerations, related terms, comparisons, facts, stories, quotes, proverbs, jargon, FAQs, and references.
Detailed Overview of Estimated Tax Payments, Including Definitions, Examples, and Requirements
An in-depth look at the Estimated Tax Penalty, a charge levied by tax authorities on individuals and businesses that fail to pay sufficient taxes throughout the year.
Payments made quarterly by individuals with substantial non-wage income to meet their tax liabilities.
An in-depth exploration of the criteria and processes used by tax authorities to select tax returns for examination or audit.
An exploration of the Exclusive Use Test criterion requiring that the area within a home used for business must be used solely for business purposes.
Income derived from activities that support the entity’s tax-exempt purposes.
A detailed look into exempt transfers and their implications on inheritance tax, including types, key events, and practical examples.
An Exemption Amount is a fixed amount deducted from Adjusted Minimum Taxable Income (AMTI) to compute the Alternative Minimum Tax (AMT).
Detailed guide on the exemption application process for obtaining tax-exempt status, including historical context, types, key events, explanations, and more.
Exemptions are specific dollar amounts that taxpayers can exclude from income. Previously, these exemptions directly reduced taxable income, but post-2017 reforms have largely replaced them with increased standard deductions.
