Z-Tax and Accounting
Glossary of Tax Terms
A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
FAQ's - Tax Professionals, Consultants and Accountants
Part 1- Personal Tax
Part 2- Business & Corporate Tax
The purpose of Income Tax planning is to reduce the income taxes paid to federal, state, and local governments. Individuals and families can use two Income Tax Planning strategies to reduce their income tax burdens.
(1) They can Invest in available Tax Advantaged Investment Alternatives.
For example, the investment return provided by investments in municipal bonds is not taxable by the federal government and might also be exempt from state and local income taxes. Various retirement plans allow people to accumulate funds for use in retirement on a tax-deductible and tax deferred basis. People should carefully consider each type of Investment that provides tax advantages.
(2) They can take advantage of tax deductions and tax credits.
The federal Income Tax code allows individuals and families to deduct certain expenses and other amounts from their annual income before calculating their federal income tax liability. Interest paid on their home mortgages, medical expenses that exceed a certain percentage of annual income, contributions to qualifies retirement plans, and amounts contributed to charitable organizations are examples of such deductions. The Federal Income Tax code also allows certain credits to be deducted from an Individual's or a Family's Income Tax Liability. For example, low income workers raising children might be able to use the earned income credit to reduce the amount of federal income tax they must pay.
Income Tax planning can help Individuals and Families increase their current standard of living and increase the amount they can accumulate for retirement and other long term needs. It is an important part of most people's financial planning.
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Personal Income Tax
- Federal Income Tax
- State Income Tax
- Sales Tax
- County, Municipality Tax
- Property Tax
- Personal Property Tax
- Payroll Tax
- Franchise Tax
- Inheritance & Estate Tax
Exemptions & Credits
- Qualifying Dependents
- The Standard Deduction
- Itemized Deduction
- Adjustment to Income
- Earned Income Tax Credit
- American Opportunity Tax Credit
- Child and Dependent Care Credit
- Child tax Credit
Form 1040 (Individual Income Tax, Forms and Schedules)
Schedule A (Form 1040), Itemized Deductions
Schedule B (Form 1040), Interest and Ordinary Dividents
Schedule C (Form 1040), Profit or Loss from a Sole Proprietorship Business
Schedule C-EZ (Form 1040), Net Profit from a Sole Proprietorship Business
Schedule D (Form 1040), Capital Gains and Losses
Schedule E 1040), Supplemental Income and Loss
Schedule EIC (1040), Earned Income Credit
Schedule F (1040), Profit or Loss from Farming
Schedule H (1040), Household Employment Taxes
Schedule J (1040), Income Averaging for Farmers and Fisherman
Schedule R (1040), Credit for the Elderly or the Disabled
Schedule SE (1040), Self Employment Tax
Schedule 8812 (1040), Child Tax Credit
Schedule 1 (1040) Additional Income and Adjustment to Income
Schedule 2 (1040) Additional Taxes
Schedule 3 (1040) Additional Credits and Payments
Schedule 4 (1040) Other Taxes
Schedule 5 (1040) Other Payments and Refundable Credits
Schedule 6 (1040) Foreign Address and Third Party Designee
Personal Income Tax FAQ's
1.1- What are Tax Credits?
1.2- What is a Refundable Tax Credit?
1.3- What is a Non-Refundable Tax Credit?
1.4- What are Tax deductions?
1.5- What is an Earned Income Tax Credit?
1.6- What is a Child and dependent Care Credit?
1.7- What is Adoption Credit?
1.8- What is Child Tax Credit and Credit for Other Dependents?
1.9- What is Credit for Elderly or Disabled?
1.10- What is the American Opportunity Credit and Lifetime Learning Credit?
1.11- What is Residential Energy Efficient Property Credit?
1.12- What is Non-Business Energy Property Credit?
1.13- What is Low Income Housing Credit (for owners)?
1,14- What is Saver's Credit?
1.15- What is Foreign Tax Credit?
1.16- What is Excess Social Security and RRTA Tax Withheld?
1.17- What is Credit for Tax on Undistributed Capital Gains?
1.18- What is nonrefundable credit for prior year minimum tax?
1.19- What is credit to Holders of Tax Credit Bonds?
1.20- What is Premium Tax Credit (Affordable Care Act)?
1.21- What is Health Coverage Tax Credit?
1.22- What are Employee Business Expenses?
1.23- What are Home Office Expenses?
1.24- What are Business Entertainment expenses?
1.25- What are Deductible Taxes?
1.26= What is the State and Local Tax deduction Limit?
1.27- What are Property Taxes and how is it claimed?
1.28- What are Real Estate Taxes and how are they claimed?
1.29- What is Sales tax and how is it claimed?
1.30- What are Charitable Contributions are how are they claimed?
1.31- What are Gambling Losses, what are the limits and how are they claimed?
1.32- What are Miscellaneous Expenses and how are they claimed?
1.33- What are Interest Expenses and how are they claimed?
1.34- What is a Home Mortgage Interest expense and how is it claimed?
1.35- What are Union/Club/Moving expenses and how are they claimed?
1.36- What is student loan interest and how is it claimed?
1.37- What are Work Related Educational expenses and how are they claimed?
1.38- What are Teacher Educational Expenses and how are they claimed?
1.39- What is the Deduction for a Sale of Home and how is it claimed?
1.40- What are Individual retirement Arrangements and how is the deduction Claimed?
1.41- What are Capital Losses and How are the Deductions Claimed?
1.42- What is Bad debt and how is the deduction claimed?
1.43- What Medical and dental Expenses can be deducted?
1.44- What is a "Health Saving Account" HSA and how is it deducted?
1.45- Is a Stock that became Worthless last year considered Bad Debt and how is it reported?
1.46- Is the Loss on the Sale of a Home Deductible?
1.47- If I receive a 1099-DIV showing a Capital Gain, is that amount reported on my Tax return although I never sold any shares?
1.48- How are the average basis calculated for Mutual Fund Shares?
1.49- Are there any taxes due on the additional stock I received due to stock split?
1.50- How do I report a form 1099-B received from my employer for selling a stock that was received under the Employee Stock Purchase Plan?
1.51- How is the cost basis figured for shares that were purchased during different times and different prices?
1.52- How is the Sale of a second home reported on a Tax Return?
1.53- Are the Proceeds received from the Sale of a Home to pay off the Mortgage Taxable?
1.54- How is the basis of a property calculated that was received as a gift?
1.55- If the gain from the sale of a principle residence is excluded this year, can the exclusion be claimed in the future for the sale of new principle residence?
1.56- What are the scenarios for excluding the gains from a property in case it was partially a principle residence and partially a rental property?
1.57- How is the Sale of a second property reported on the tax return?
1.58- How are reinvested dividends reported on a tax return?
1.59- How does the return of principle payments affect my cost basis in my mutual funds?
1.60- What is the Manufacturer's Energy Efficient Appliance Credit?
1.62- What is Plug-in Electric Drive Vehicle Credit (IRC 30D)?
1.63- What is Research credit?
1.64- What qualifies as Deductible Business credit including depreciation?
1.65- How is the IRS notified of an address change?
1.66- What is the age limit on claiming a child as a dependent?
1.67- What is the Income limit for an unmarried dependent student before he or she must file an Income Tax return?
1.68- Do I have to claim a child as a dependent to claim a Head of Household status?
1.69- If I make a mistake on a tax return and file it, how can I make the correction?
1.70- What is the meaning of a "Split Refund"?
1.71- Who should make quarterly estimated tax payments and in what amounts?
1.72- Does the IRS figure Tax and Credits for the Taxpeyers?
1.73- What should I do if my check to IRS for Tax payment does not clear?
1.74- What is a Private Letter Ruling and how do I receive One?
1.75- What should I do if I am unable to pay IRS delinquent Taxes?
1.76- What is the Interest and Penalties for filing and not paying IRS tax on time?
1.77- Can I get a copy of W2 from IRS?
1.78- What is the two month automatic extension for Tax filers filing a return from Overseas?
1.79- What is Injured Spouse Allocation?
1.80- How can I correct the spellings of my name with IRS?
1.81- Is there a need to change my name for "Married filing Jointly"?
1.82- If I change my name, how do I file a Tax Return?
1.83- If I update my name on my Social Security card and my W2 and or 1099 shows my old name, what should I do?
1.84- If I loose my refund check, can I receive a replacement check?
1.85- How do I find out if my Refund Check was cashed?
1.86- When fling a Joint Tax Return with spouse, can the refund be deposited in either filer's account or a Joint Account only?
1.87- What are the issues that can change the amount of my Tax Refund?
1.89- If I key in a wrong accout number or routing number on the return, can I fix it?
1.90- How canI collet child support from a non-custodial parent?
1.91- If someone files a return with my Social Security Number, how do I notify the IRS?
1.92- How do I file a deceased persons Tax Return?
1.93- Can the Employer provide a W@ electronically?
1.94- if I receive an incorrect W2 and my employer does not correct it, what should I do?
1.95- Are full time students exempt from Fderal Income Tax?
1.96- Whom can I claim as a dependent?
1.97- Are the proceeds from Life Insurance Policy taxable?
2.1- Wages and Salaries
2.2- Interest Received
2.4- Business Income
2.5- Capital Gains and Losses
2.6- Pensions and Annuities
2.7- Lump-sum Distributions
2.8- Rollovers from Retirement Plans
2.9- Rental Income and Expenses
2.10- Renting Residential and Vacation Property
2.11- Farming and Fishing Income
2.12- Earnings for Clergy
2.13- Unemployment Compensation
2.14- Gambling Income and Losses
2.15- Bartering Income
2.16- Scholarship, Fellowship Grants and other Grants
2.17- Social Security and equivalent Railroad Retirement Benefits
2.18- 401(k) Plans
2.19- Passive Activities - Losses and Credits
2.20- Stock Options
2.21- Traders in Securities
2.22- Receipt of Stock in a Demutualization
2.23- Cancelled Debt
2.24- Form 1099-A (Acquisition or Abandonment of Secured Property)
2.25- Form 1099-C (Cancellation of Debt)
3.1- Individual Retirement Arrangements (IRAs)
3.3- Bad Debt Deduction
3.4- Moving Expenses for Members of the Armed forces
3.5- Student Loan Interest Deduction
3.6- Educator Expense Deduction
4.1- Who Should Itemize Deductions?
4.2- Medical and Dental Expenses
4.3- Deductible Taxes
4.4- Home Mortgage Points
4.5- Interest Expense
4.6- Charitable Contributions
4.7- Business Use of Home
4.8- Business Use of Car
4.9- Business Travel Expenses
4.10- Work Related Education Expenses
4.11- Casualty, Disaster and Theft Losses
5.1- Standard Deduction
5.2- Tax and Credits figured by IRS
5.3- Tax on Child's Investment and other Unearned Income (Kiddie Tax)
5.4- Self-Employment Tax
5.5- Aternative Minimum Tax (AMT)
5.6- Additional Tax on Early Distributions from Traditional and Roth IRA's
5.7- Additional Tax on Early Distributions from Retirement plans other than IRA's
5.8- Net Investment Income Tax
5.9- Additional Medicare Tax
5.10- Individual Shared Responsibility Provision
6.1- Earned Income Credit
6.2- Child and Dependent Care Credit
6.3- Adoption Credit and Adoption Assistance Programs
6.4- Excess Social Security and RRTA Tax Withheld
6.5- Retirement Savings Contributions Credit
6.6- Repayment of the First Time Home buyer Credit
6.7- The Premium Tax Credit
Basis of Assets, Depreciation, and Sale of Assets
7.1- Sale of Home
7.2- Basis of Assets
7.4- Installment Sales
Tax Information for US Resident Aliens and Citizens Living Abroad
8.1- Resident and Non Resident Aliens
8.2- Foreign Tax Credit
8.3- Individual Taxpayer Identification Number (ITIN)
8.4- Alien Tax Clearance
Tax Information for Residents of Puerto Rico
9.1- Is there a requirement to file a US Federal Income Tax return for an Individual with Income from Puerto Rico?
9.2- Credits and Deductions for Individuals with Income from Puerto Rico
9.3- US Employment Tax in Puerto Rico
9.4- Tax Assistance for Residents of Puerto Rico
Corporate and Business Taxes
11.1- Social Security and Medicare Withholding Rates
11.2- Filing Forms W-2 and W-3
11.3- Form W-4 -- Employees Withholding Allowance Certificate
11.4- Employer Identification Number (EIN)
11.5- Employment Taxes for Household Employees
11.6- Forms 941 and 944, Deposit Requirements
11.7- Form 941, Employers Quarterly Federal Tax Return
11.8- Form 944- Employer's Annual Federal Tax Return
11.9- Form 940- Employer's Annual Federal Unemployment (FUTA) Tax Return (Filing and Deposit Requirements)
11.10- Form 943- Reporting and Deposit Requirements for Agricultural Employers
11.11- Withholding and Reporting Requirements
11.12- The Affordable Care Act
(12) Sole Proprietorships
(13) Business Partnerships
(15) S Corporations
(16) Limited Liability Company (LLC)
(17) Self Employment Tax
(18) Employment Taxes
(19) Excise Tax
(20) Estimated Tax
(21) Information Returns
(22) Categorized Industrial and Professional Tax Centers
(23) Corporate Executive Compliance
(24) Foreign Account Tax Compliance Act (FATCA)
(25) Report of Foreign Bank and Financial Accounts (FBAR)
(26) Tax Treaties with Other Countries
(27) Federal, State and Local Governments Tax Information
(28) Indian Tribal Governments (ITG) Tax Information
(29) Tax Exempt Bonds (TEB)
(30) Governmental Liaisons (GL)
United States Tax Treaties with Other Countries
26.1- United States Tax Treaty with Armenia
26.2- United States Tax Treaty with Australia
26.3- United States Tax Treaty with Austria
26.4- United States Tax Treaty with Azerbaijan
26.5- United States Tax Treaty with Bangladesh
26.6- United States Tax Treaty with Barbados
26.7- United States Tax Treaty with Belarus
26.8- United States Tax Treaty with Belgium
26.9- United States Tax Treaty with Bulgaria
26.10- United States Tax Treaty with Canada
26.11- United States Tax Treaty with China
26.12- United States Tax Treaty with Cyprus
26.13- United States Tax Treaty with Czech Republic
26.14- United States Tax Treaty with Denmark
26.15- United States Tax Treaty with Egypt
26.16- United States Tax Treaty with Estonia
26.17- United States Tax Treaty with Finland
26.18- United States Tax Treaty with France
26.19- United States Tax Treaty with Georgia
26.20- United States Tax Treaty with Germany
26.21- United States Tax Treaty with Greece
26.22- United States Tax Treaty with Hungary
26.23- United States Tax Treaty with Iceland
26.24- United States Tax Treaty with India
26.25- United States Tax Treaty with Indonesia
26.26- United States Tax Treaty with Ireland
26.27- United States Tax Treaty with Israel
26.28- United States Tax Treaty with Italy
26.29- United States Tax Treaty with Jamaica
26.30- United States Tax Treaty with Japan
26.31- United States Tax Treaty with Kazakhstan
26.32- United States Tax Treaty with Korea
26.33- United States Tax Treaty with Kyrgyzstan
26.34- United States Tax Treaty with Latvia
26.35- United States Tax Treaty with Lithuania
26.36- United States Tax Treaty with Luxembourg
26.37- United States Tax Treaty with Malta
26.38- United States Tax Treaty with Mexico
26.39- United States Tax Treaty with Moldova
26.40- United States Tax Treaty with Morocco
26.41- United States Tax Treaty with Netherlands
26.42- United States Tax Treaty with New Zealand
26.43- United States Tax Treaty with Norway
26.44- United States Tax Treaty with Pakistan
26.45- United States Tax Treaty with Philippines
26.46- United States Tax Treaty with Poland
26.47- United States Tax Treaty with Portugal
26.48- United States Tax Treaty with Romania
26.49- United States Tax Treaty with Russia
26.50- United States Tax Treaty with Slovak Republic
26.51- United States Tax Treaty with Slovenia
26.52- United States Tax Treaty with South Africa
26.53- United States Tax Treaty with Spain
26.54- United States Tax Treaty with Sri Lanka
26.55- United States Tax Treaty with Sweden
26.56- United States Tax Treaty with Switzerland
26.57- United States Tax Treaty with Tajikistan
26.58- United States Tax Treaty with Thailand
26.59- United States Tax Treaty with Trinidad
26.60- United States Tax Treaty with Tunisia
26.61- United States Tax Treaty with Turkey
26.62- United States Tax Treaty with Turkmenistan
26.63- United States Tax Treaty with Ukraine
26.64- United States Tax Treaty of Union of Soviet Socialist Republics (USSR)
26.65- United States Tax Treaty with United Kingdom
26.66- United States Tax Treaty with Uzbekistan
26.67- United States Tax Treaty with Venezuela