Learn about the Deductions from Gross Income (DFROM), including the choice between Itemized Deductions and the Standard Deduction. Discover the implications of Above the Line deductions and the impact on taxable income.
Detailed explanation of the deferral of taxes, a strategy used to postpone tax payments from the current year to a later year, its benefits, and examples.
A comprehensive overview of Deferred Contribution Plans, whereby unused deductions can be carried forward and utilized in future profit-sharing contributions, optimizing tax benefits for employers.
Comprehensive understanding of Delinquent Return for tax purposes, penalties involved, historical context, and comparisons with related terms.
A comprehensive guide to Dependency Exemption, detailing its definition, types, importance, and relation to dependents for tax purposes.
An overview of the Dependent Care Credit, its eligibility criteria, benefits, and application process.
Depreciation recapture refers to the process whereby gains from the sale of depreciated property are taxed as ordinary income specifically linked to the depreciation previously deducted.
The Discriminant Function System (DIF) is a sophisticated IRS technique utilizing mathematical formulas to identify and prioritize tax returns for examination based on their potential for tax error.
A detailed overview of the Dividends-Paid Deduction, its applicability in computing the accumulated earnings tax and the personal holding company tax.
A detailed exploration of the concept of a divorced taxpayer, including definition, types, tax implications, historical context, examples, FAQs, and related terms.
An overview of dues and subscriptions as professional expenses, their tax deductibility, AGI floor considerations, and related terms.
A comprehensive definition and discussion of 'Duty,' covering its applications in taxation, legal fiduciary obligations, and more.
In-depth understanding of the Earned Income Tax Credit (EITC), including eligibility requirements, benefits, and its historical significance.
A comprehensive guide to the Elderly or Disabled Tax Credit, its eligibility criteria, calculations involved, and its significance for taxpayers.
An in-depth overview of the Elderly or Permanently and Totally Disabled Tax Credit, providing tax benefits for qualifying elderly or disabled taxpayers.
A system whereby tax returns are transmitted electronically to the IRS by a transmitter, and tapes are created in the receiving station and loaded into the EFS computer system. Especially suitable for taxpayers expecting a tax refund.
An in-depth look at Electronic Return Originators (EROs), their roles, responsibilities, and significance in the electronic tax filing process.
An Electronic Return Originator (ERO) is a tax professional authorized to prepare and file tax returns electronically. This role is critical in the tax filing process, ensuring accuracy, efficiency, and compliance with IRS regulations.
An in-depth look into the Electronic Transmitter Identification Number (ETIN), a unique identifier assigned by the IRS to providers of electronically filed tax returns. Understand its significance, application process, and related compliance requirements.
Detailed information on Employer Identification Number (EIN), a Taxpayer Identification Number (TIN) for entities other than individuals, such as partnerships, corporations, estates, and trusts.
A comprehensive guide to Employment Tax, including FICA Taxes, Self-Employment Tax, and Social Security Taxes.
An in-depth analysis of the deductibility of entertainment expenses and business meals under current tax law, including conditions, limitations, examples, and frequently asked questions.
Understanding Estate Tax Payable, a critical concept in taxation, involves calculating the amount due after various deductions from the Tentative Estate Tax.
Excess (Accelerated) Depreciation refers to the accumulated difference between accelerated depreciation claimed for tax purposes and what straight-line depreciation would have been. This excess is often recaptured and taxed as ordinary income upon a sale.
Excise Tax is a tax imposed on specific goods, activities, or services. Unlike income or property taxes, excise taxes are applied primarily to the manufacture, sale, or consumption of goods such as tobacco, gasoline, and alcohol.
A comprehensive overview of the 1993 US tax law that limits the deductible executive compensation by publicly held corporations to $1 million per year, with exceptions for productivity-linked compensation.
A detailed explanation of Exempt Organizations, including their types, benefits, and regulatory considerations.
An Exemption refers to a deduction allowed a taxpayer due to their status or circumstances, which reduces taxable income. Common examples include personal exemptions, homestead exemptions, and exemptions under the Alternative Minimum Tax (AMT).
Understanding how the amount claimed as a deduction for personal exemptions is reduced as Adjusted Gross Income (AGI) increases beyond a specified threshold.
A comprehensive guide on the Failure-to-File Penalty assessed on a tax return not filed by the due date, including an overview of rates, exceptions, and related penalties.
The Federal Unemployment Tax Act (FUTA) establishes a federal framework for unemployment insurance, requiring employers to contribute to the federal unemployment fund based on employee wages, with provisions for state tax credits.
Filing status for tax purposes determines which tax return form is used, based on an individual's marital status and household situation.
A detailed explanation of Flexible Spending Account (FSA), a tax-advantaged financial account into which employees can contribute on a pre-tax basis to pay for certain out-of-pocket healthcare and dependent care expenses.
Detailed explanation of Foreign Income, covering its definition, taxation, examples, and relevant regulations.
Detailed explanation of the Foreign Tax Credit, which allows U.S. taxpayers to offset foreign taxes paid against their U.S. income tax liability.
Detailed definitions and guidelines for Form 1040, 1040A, and 1040EZ, the individual U.S. income tax returns required to report income, deductions, and credits for the previous year.
Form 1065 is utilized by partnerships and joint ventures in the United States to report financial information to the IRS. This article explores the purpose, components, filing process, and important considerations associated with Form 1065.
A comprehensive guide on Form 1099, its usage, types, and reporting requirements for interest, dividends, royalties, capital gains, miscellaneous income, and other distributions.
Detailed overview of FORM 1120, the U.S. Corporate Income Tax Return required to be filed by most domestic corporations.
The Gas Guzzler Tax is a federal tax imposed on the sale, use, or lease of vehicles that do not meet specific fuel economy standards. Learn its history, applicability, and impact on consumers and manufacturers.
An in-depth look at the General Depreciation System (GDS) under the Modified Accelerated Cost Recovery System (MACRS) for tax depreciation.
An in-depth guide to understanding General Property Tax, including its types, applicability, historical context, and related terms.
A complete guide to understanding Generation-Skipping Transfers, their tax implications, types, and historical context.
An in-depth explanation of gift splitting, where a husband and wife can combine their annual gift tax exclusions and unified estate and gift tax credits to jointly give larger gifts.
A comprehensive guide to gift tax exclusion, detailing the annual exclusion limits, their historical context, applicability, examples, and important considerations.
A comprehensive explanation of guardianship expenses, including types, tax implications, examples, and frequently asked questions.
A comprehensive guide to understanding qualified higher education expenses, including tax credits and savings accounts.
Hobby Loss refers to the loss incurred by a taxpayer in an activity not pursued for profit. The loss is deductible only to the extent of income generated by the hobby, with specific presumptions regarding its profit generation.
Understanding Home Mortgage Interest: Detailed definition, types, eligibility, tax implications, historical context, and examples.
Learn about the definition and tax considerations of a home office, which serves as either the headquarters location of a company or an exclusive space in a personal residence used for business purposes.
A comprehensive overview of the first-time Homebuyer Tax Credit enacted in 2009 to encourage first-time homebuyers to purchase homes, offering a tax credit of up to $8,000.
The Homestead Exemption is a legal provision that reduces the assessed value of a principal residence, thereby lowering the property tax burden for homeowners. This entry explores its mechanisms, examples, historical context, and related terms.
A comprehensive explanation of the Hope Scholarship Credit, its purpose, how it was utilized in education financing, and how it was replaced by the American Opportunity Tax Credit in 2008.
Detailed analysis of Income Splitting as a tax strategy, its methods, benefits, pitfalls, and legal considerations.
A comprehensive guide on Income Tax Liens, their implications, and the process involved.
An Income Tax Preparer is a professional who prepares income tax returns for individuals or entities in exchange for compensation, ensuring compliance with tax laws.
An overview of the Income Tax Rebate Plan included in the 2008 economic stimulus bill proposed by President George W. Bush, detailing tax rebates, loan limit increases, and business incentives.
A detailed overview of Income Tax Returns, covering Form 1040, Form 1120, and Form 1065, alongside their types, special considerations, examples, historical context, and more.
Comprehensive definition of an Independent Producer in the context of the oil market, including applicable tax considerations and percentage depletion rate.
In the context of taxation, an individual often refers to a single taxpayer who files their taxes separately from any spouse or dependents.
Explore the concept of Information Return, its significance in tax reporting, and examples such as Forms 1099 and W-2. Understand its purpose and implications for taxpayers and the IRS.
Inheritance tax is a state tax levied on the value of property passing to an heir. Unlike the estate tax, it is calculated based on what the heir receives, not the total value of the decedent's estate.
Comprehensive guide on Interest Deductions covering Investment Interest, Construction Interest, Business Interest, Housing Interest, and Consumer Interest, along with their tax implications.
The Internal Revenue Bulletin (IRB) is a weekly publication by the IRS, summarizing administrative rulings, decisions, procedures, and notices critical for tax law compliance.
Detailed explanation of the Internal Revenue Code of 1986, including its components, purpose, amendments, and interpretations through legislation and court rulings.
The Internal Revenue Service (IRS) is the revenue service of the United States federal government responsible for collecting taxes and enforcing tax laws.
Investment Credit, often referred to as Investment Tax Credit (ITC), is a tax incentive that allows businesses to deduct a certain percentage of investment costs from their tax liability.
Investment interest expense refers to the interest paid on funds borrowed to acquire investment assets like bonds, stocks, and undeveloped land. Tax deductions for such expenses are limited to the income received from the investments, like dividends and interest.
Investment Tax Credit (ITC) includes tax credits such as the Rehabilitation Tax Credit, the Business Energy Investment Credit, gasification, advanced coal, and the Reforestation Credit, which provide significant financial incentives for businesses and individuals making capital investments.
Income in Respect of a Decedent (IRD) refers to income that was owed to a deceased person but not received before their death. This income is typically subject to both estate and income taxes.
Detailed explanation of itemized deductions, including types, limitations, and examples.
An in-depth analysis of deductible job hunting expenses related to tax purposes, including qualifying expenses, limitations, and tax deductions.
An in-depth look at Lifetime Exemption as part of the Unified Estate and Gift Tax system in the United States.
The Lifetime Learning Credit is a U.S. tax credit for education expenses, applicable to students of any age for a variety of educational pursuits.
Comprehensive definition and explanation of Like-Kind Property, covering tax-free exchanges under Section 1031, including examples, historical context, and related terms.
Comprehensive definition of Long-term Capital Gain (Loss) including tax implications, examples, and special considerations.
Loss Carryback refers to a tax provision that allows businesses to offset current year's net losses against net income of prior years, resulting in tax refunds for previously paid taxes. This article explores the mechanics, advantages, and implications of loss carryback rules.
A comprehensive overview of 'Loss Carryover', a tax mechanism allowing businesses to apply a net operating loss to future profits.
An in-depth exploration of the Loss Denial Rule, commonly referred to under the term 'Hobby Loss,' which pertains to the deductibility of expenses in activities not deemed profit-driven.
An in-depth analysis of luxury automobiles and their depreciation limitations under tax regulations, including the criteria for listed property and tax implications.
A depreciation method in the United States for tax purposes that allows businesses to recover the cost of property over a specified life span.
Comprehensive guide to Marginal Tax Rates, including how they are applied, examples, historical context, and related terms.
Detailed explanation of how marital status affects tax returns.
A comprehensive guide on the Married Filing Jointly status, its benefits, considerations, and potential drawbacks including the marriage penalty.
An overview of the 'Married Filing Separately' tax filing option for married taxpayers who wish to file their tax returns separately.
Understanding the definition, implications, and filing status options for married taxpayers.
Understanding the tax implications and qualifications for deducting meals and entertainment expenses in business.
A detailed definition of the Medical Expense Deduction, which allows individuals to itemize unreimbursed payments for medical care, prescription drugs, and medical insurance premiums exceeding 7.5% of their Adjusted Gross Income (AGI).
An in-depth overview of Medicare Tax, its calculations, applicability, and obligations for both employees and self-employed individuals under the Federal Insurance Contributions Act.
A comprehensive guide to the millage rate, a critical tax rate applied to property. Learn how each mill represents $1 per $1,000 of assessed property value, and how it impacts property taxes.
Miscellaneous itemized deductions refer to job expenses and other miscellaneous expenses that are deductible by individual taxpayers but are not categorizable under specified major expense categories. These deductions are subject to specific limitations.
An in-depth look at Modified Adjusted Gross Income (MAGI), how it differs from Adjusted Gross Income (AGI), and its significance in tax calculations.
A comprehensive guide to the Mortgage Interest Deduction, its benefits, eligibility criteria, and impact on taxpayers.
A comprehensive guide to moving expense deductions, including eligibility criteria, allowable expenses, examples, and historical context.
Net Estate is the portion of a decedent's estate subject to estate tax after all allowable deductions under federal and state statutes, including debts, funeral, and administrative expenses, are subtracted from the gross estate.
Understanding the concept, application, and regulations surrounding the Net Operating Loss Deduction in the context of tax filings.
Nexus refers to a sufficient presence within the jurisdiction of a taxing authority, determining the taxable income of a multistate corporation that may be apportioned to a specific state.
An in-depth exploration of Nonbusiness Income, its taxation implications, types, and related considerations in multistate corporations.
Nontaxable interest refers to the interest on state and municipal debt obligations, such as municipal bonds, which is generally excluded from federal taxable income. Explore the nuances, types, special considerations, and more.
An in-depth examination of the IRS Notice of Deficiency, its significance, and how taxpayers should respond.
