Taxes

1040 Form: The Standard IRS Form for Annual Income Tax Returns
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: Reporting Miscellaneous Income
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.
1099-NEC: Nonemployee Compensation Reporting
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): Tax-Exempt Entities
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: Understanding Their Impact on Adjusted Gross Income
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.
Abusive Tax Shelter: A Financial Arrangement
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.
Actual Expense Method: Comprehensive Guide
A detailed explanation of the Actual Expense Method for vehicle-related expense deductions, including definitions, examples, and frequently asked questions.
Additional Medicare Tax: A Surcharge for High Earners
An overview of the Additional Medicare Tax, a 0.9% tax on high earners' wages above specific thresholds designed to support Medicare funding.
Adjusted Gross Income: Key to Understanding Tax Liabilities
A comprehensive look at Adjusted Gross Income (AGI), its significance in the USA, calculations, and related tax implications.
Adjusted Gross Income (AGI): What Is It and How Is It Calculated?
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): Essential Concept in Taxation
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.
Adjustment Item: Items Added Back to Taxable Income When Computing AMTI
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.
Adoption Tax Credit: A Financial Relief for Adoption Expenses
A comprehensive guide to the Adoption Tax Credit, including its definition, eligibility, calculations, and historical context.
Advance Corporation Tax: Prepayment of Corporate Tax on Dividends
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.
Advance Ruling: Preliminary IRS Ruling on a Transaction Before Execution
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.
Advance Rulings: Preemptive Tax Law Guidance
An in-depth exploration of Advance Rulings in the context of tax laws, including historical context, applications, types, key events, and practical examples.
Agricultural Property Relief: A Comprehensive Guide
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.
Alimony Payment: Definition, Importance, and Detailed Explanation
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.
American Opportunity Credit: An Educational Tax Credit
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.
American Opportunity Credit: A Tax Credit for Higher 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.
American Opportunity Tax Credit (AOTC): A Comprehensive Overview
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.
AMT Rates: Different Rates Applied to AMT Base for TMT Calculation
An in-depth analysis of Alternative Minimum Tax (AMT) rates, their calculation, historical context, importance, applicability, and related terms.
Annual Exemption: Understanding Inheritance Tax Relief
Comprehensive coverage of the Annual Exemption under inheritance tax legislation, its historical context, applicability, key considerations, and practical examples.
Annual Gift Exclusion: Essential Guide
Comprehensive coverage on the Annual Gift Exclusion, its historical context, key considerations, formulas, examples, related terms, and FAQs.
Appeals Conference: Definition, Purpose, and Process
An Appeals Conference is a meeting with an IRS Appeals Officer to discuss and potentially resolve a taxpayer's disagreements.
AVC: Additional Voluntary Contribution
A comprehensive guide to Additional Voluntary Contributions (AVC) in the context of pensions, including their importance, types, benefits, and considerations.
Average Tax Rate: Tax Liability as a Proportion of the Tax Base
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.
Badges of Trade: Indicators of Trading Activity
A comprehensive guide to understanding Badges of Trade, their importance, historical context, and applications in determining trading activities for tax and legal purposes.
Basic Rate: Standard Tax Deduction in CIS
The standard rate at which tax is deducted from payments under the Construction Industry Scheme (CIS), typically set at 20%.
Basic Rate: Definition, History, and Importance
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.
Basis (Tax): The Cost of an Asset for Tax Purposes
An in-depth look at Basis in tax, including definitions, types, examples, historical context, and applicability.
Basis of Assessment: Fundamental Framework in Taxation
A comprehensive examination of the basis upon which personal income or business profits are assessed in the UK for each fiscal year.
Benefits in Kind: A Comprehensive Overview
A detailed exploration of benefits other than cash arising from employment, including historical context, valuation rules, reporting requirements, and key considerations.
Business: Definition, Context, and Implications
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: Local Taxes for UK Businesses
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.
Business Use of Home: Maximizing Deductions for Home-Based Businesses
Comprehensive guide on Business Use of Home, including criteria, benefits, considerations, tax deductions, and best practices for home-based businesses.
C/F (Carried Forward): Balances Moved from the Current Period to the Next
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.
Calendar Tax Year: Definition and Explanation
A comprehensive guide to understanding the Calendar Tax Year, a 12-month period from January 1 to December 31, utilized for taxation purposes.
Capital Gain Tax: Tax on Profit from Asset Sales
Comprehensive exploration of Capital Gain Tax, covering historical context, types, key events, formulas, applicability, examples, related terms, interesting facts, quotes, FAQs, and more.
Capital Gains Tax (CGT): Tax on Profit from Sale of Assets
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.
Capital Transfer Tax: An Overview of CTT
Comprehensive guide on Capital Transfer Tax (CTT), covering historical context, types, key events, formulas, importance, examples, related terms, and more.
CGT: Understanding Capital Gains Tax
An in-depth exploration of Capital Gains Tax (CGT), its history, types, key events, and importance in finance and investments.
Chargeable Event: Tax Liabilities Explained
An in-depth exploration of chargeable events in taxation, including historical context, types, key events, and detailed explanations.
Charitable Deductions: Tax Benefits for Donations
Understand how charitable deductions can reduce your taxable income when you contribute to qualifying charitable organizations.
Chief Counsel Advice (CCA): Written Guidance by the IRS
Chief Counsel Advice (CCA) is issued by the IRS Office of Chief Counsel to provide written guidance and instructions on various tax-related matters.
Clergy Housing Exclusion: Tax Exemption for Clergy Housing
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.
Comparison to MFS: An In-Depth Examination
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: Tax on Corporate Profits
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: A UK Local-Government Tax Based on Property Valuation
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.
Council Tax: A Comprehensive Overview
An in-depth look into the Council Tax system in the UK, its history, valuation bands, exemptions, and implications for homeowners and local authorities.
CT: Abbreviation for Corporation Tax
Detailed overview of Corporation Tax (CT), including its historical context, types, importance, key events, formulas, and related terms.
Current-Year Basis (CYB): Taxes Based on the Current Year's Income
A comprehensive guide to understanding the Current-Year Basis (CYB) system, where taxes are calculated based on the income earned in the current year.
Currently Not Collectible Status (CNC): A Temporary Relief from IRS Collection
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: A Key Concept in Taxation
Deductibility refers to the eligibility of expenses to be subtracted from gross income for tax purposes, ultimately reducing taxable income.
Deductibility: Reducing Tax Liability through Deductions
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.
Deductions: Essential Financial Adjustments
Specific expenses that can be subtracted from gross income to reduce taxable income, including taxes, insurance premiums, and retirement contributions.
Deductions and Credits: Reductions in Taxable Income or Tax Liability
A comprehensive overview of deductions and credits, including their types, implications, key events, examples, considerations, and related terms.
Deductions at Source: Streamlining Tax Collection
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: Postponement of a Tax Obligation to a Future Period
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.
Deficiency: Understanding Tax Liabilities and Debt
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.
Delinquent Taxes: Comprehensive Guide
An in-depth exploration of delinquent taxes, including definitions, examples, historical context, and applicable regulations.
Disallowed Expense: Understanding Non-Deductible Costs
A comprehensive guide to understanding disallowed expenses in tax and accounting, including types, key events, explanations, importance, and related terms.
Domestic Production Activities Deduction (DPAD): Tax Deduction for Domestic Manufacturing
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: The Process of Electronically Submitting Tax Returns to the IRS
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.
Earned Income Credit (EIC): Tax Credit for Low-to-Moderate-Income Workers
Detailed Information on the Earned Income Credit, a U.S. tax benefit aimed at helping low-to-moderate-income workers, particularly those with children.
Earned Income vs. Unearned Income: Definition and Distinction
Learn the crucial differences between earned and unearned income, including their definitions, examples, and relevance to tax regulations such as the Kiddie Tax.
Economic Substance Doctrine: An Analysis in Tax Law
A detailed analysis of the Economic Substance Doctrine, which evaluates whether transactions have substantial economic purposes beyond tax benefits.
EFS (Electronic Filing System): Seamless Tax Filing
EFS (Electronic Filing System) at the IRS processes electronically filed tax returns, facilitating efficient, accurate, and secure tax submissions.
Electronic Return Originator (ERO): Facilitator of Electronic 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: Expert Tax Representation
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).
Entertainment Expenses: Definition and Considerations
Comprehensive exploration of entertainment expenses, including historical context, key changes post-TCJA, and guidelines for modern applicability.
Error or Mistake: Tax Overpayment Claims
Understanding error or mistake claims by taxpayers for overpaid tax due to errors or omissions in returns or statements.
Estate Duty: Understanding Inheritance Tax
A comprehensive guide to Estate Duty, including its historical context, types, key events, and its role in finance and taxation.
Estate Taxes: Understanding the Financial Implications
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.
Estimated Tax Penalty: Consequence for Underpayment
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.
Exclusive Use Test: A Tax Deduction Criterion
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.
Exempt Transfers: Understanding Tax-Free Gifting
A detailed look into exempt transfers and their implications on inheritance tax, including types, key events, and practical examples.
Exemption Amount: A Key Component in AMT Calculation
An Exemption Amount is a fixed amount deducted from Adjusted Minimum Taxable Income (AMTI) to compute the Alternative Minimum Tax (AMT).
Exemptions: Tax Benefits Explained
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.

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