Income Tax Definition Quizlet

The definition of an income tax return is a document you file with the internal revenue service or the state tax board reporting your income profits and losses of your business and other deductions as well as details about your tax refund or tax liability.

Income tax definition quizlet. The amount of income that is used to calculate an individual s or company s income tax due. Total income minus exemptions and deductions tax return an annual report to the irs summarizing total income deductions and the taxes withheld by employers. Learn income tax with free interactive flashcards. The is a tax on the transfer of property by one individual to another while receiving nothing or less than full value in return business or license tax fee paid for a license permit or stamp to operate certain kinds of businesses.

Taxation rates may vary by type or characteristics of the taxpayer. How to use income tax in a sentence. Income on which tax must be paid. A 1040 form is an example of a federal income tax return.

An income tax is a tax imposed on individuals or entities taxpayers that varies with respective income or profits taxable income. Income tax generally is computed as the product of a tax rate times taxable income. Income includes earnings from employment profits from a trade carried on by an individual either alone or in partnership income from pensions and investment income such as. Income tax is a type of tax that governments impose on income generated by businesses and individuals within their jurisdiction.

Standard deduction a dollar amount that a taxpayer must exceed in income to be required to file a tax return. The financial times glossary of terms has the following definition of income tax. Income tax definition is a tax on the net income of an individual or a business. This is a tax on the earned and unearned income of individuals and trusts.

Proportional regressive definition.