Individual Income Tax Flashcards
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Terms in this set
- Gross Income All income from whatever source derived, unless specifically excluded by the tax law.
- Adjusted Gross Income Gross income reduced by specific above-the-line deductions, a key figure for many tax limitations.
- Tax Deductions Amounts subtracted from income that reduce the taxable base, such as the standard or itemized deductions.
- Tax Credits Amounts that reduce tax liability dollar for dollar, sometimes refundable.
- Individual Taxation The federal income taxation of individual taxpayers and their filing of personal returns.
- Taxable Income The amount of income subject to tax after subtracting allowable deductions from gross income.
- Alternative Minimum Tax A parallel tax that adds back certain preferences to ensure taxpayers pay a minimum amount of tax.
- Estimated Taxes Periodic prepayments of tax required when withholding does not cover the expected liability.