Taxation Financial Terms & Definitions

29 terms in this topic

Taxation encompasses all laws, regulations, and processes governing the assessment and collection of taxes. It includes various tax types such as income, corporate, sales, and property taxes, as well as rules on tax rates, deductions, credits, and compliance.

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1099

A 1099 form is a series of tax documents issued by the Internal Revenue Service (IRS) and used to report…

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C

Cost basis

Cost basis is the original value of an asset for tax purposes, usually the purchase price plus any associated costs…

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I

IRS Form 1040

IRS Form 1040, officially titled the “U.S. Individual Income Tax Return,” is the standard federal income tax form used by…

Full Definition
1099 A 1099 form is a series of tax documents issued by the Internal Revenue Service (IRS) and used… Above-the-line deduction An above-the-line deduction is a type of tax deduction that you can subtract directly from your gross income… Adjusted gross income (AGI) Adjusted Gross Income (AGI) is a key number used in the United States tax system. It represents your… AMT (Alternative Minimum Tax) The Alternative Minimum Tax, commonly known by its acronym AMT, is a separate tax system in the United… Below-the-line deduction A below-the-line deduction is an expense that you can subtract from your adjusted gross income (AGI) to reduce… Cost basis Cost basis is the original value of an asset for tax purposes, usually the purchase price plus any… Effective tax rate The effective tax rate is the average rate at which an individual or a corporation is taxed on… Estate tax The estate tax is a federal tax imposed on the transfer of a deceased person’s assets to their… Estimated tax Estimated tax is a method of paying taxes on income that is not subject to withholding. Instead of… FICA / payroll tax FICA, which stands for the Federal Insurance Contributions Act, is a United States federal law that requires a… Gift tax The gift tax is a federal tax in the United States imposed on the transfer of property or… IRS Form 1040 IRS Form 1040, officially titled the “U.S. Individual Income Tax Return,” is the standard federal income tax form…