Understanding Basic Tax Terms

If your like many, you don't always understand what people are talking about when it comes to Taxes. It's important to know the main tax terminology, especially when tax season comes around. Knowing the basics will make tax season less of a hassle for you, and maybe even save you some money. There are hundreds of terms; Below are some of the most important:

Tax Form
A Tax Form is the form that is filled out and submitted to your government to report all of your tax information for the past year.

Audit
An audit refers to an unbiased examination and evaluation of the financial statements of an individual or organization such as a business. Audit's are performed for the purpose of ensuring that accounting records are fair and consistent, and are following the guidelines laid out for the individual or organization.

Capital Gain
Capital Gain refers to the amount of money made on Capital during a given tax period. For example if you own a house, and over the past year the value of your house increased by twenty thousand dollars, you would have to claim this twenty thousand dollars as a capital gain in your income taxes.

Capital Loss
Capital Gain refers to the amount of money Lost on Capital during a given tax period. For example if you own a house, and over the past year the value of your house decreased by twenty thousand dollars, you would have to claim this twenty thousand dollars as a capital loss in your income taxes.

Child Tax Credit
Child tax credits are tax credits that are given to the caregivers for each dependent child, that at the end of the tax year is under 17.

Flat Tax
Flat tax refers to a system where everyone is taxed at the same rate, regardless of how much they earn.

Gross Income
Gross income is an individuals or corporations total income before any taxes or deductions have been applied to the sum.

Net Income
Net Income is the total amount of income after all deductions and expenses.

Property Tax
Property tax is a tax that is assessed on real estate value by a local government.

Feel free to reprint this article as long as you keep the following caption and author biography in tact with all hyperlinks.

Ryan Fyfe is the owner and operator of Taxes Area. Which is a great web directory and information center on Taxes and related issues like Income tax and property tax.

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Income tax officials conduct searches on four businessmen’s premises in Chennai, other places  Times of IndiaIncome tax officials on Thursday morning began searches on 31 premises -- in Chennai and nearby districts – of four businessmen, in connection with ta.
Lyft donates $700,000 to Oakland after quietly battling city taxes  The GuardianDonation will aid transportation in low-income neighborhoods, but tax could have generated far more money. Darwin BondGraham in Oakland. Wed 13 Feb ...
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Lawmakers consider fixes for costly tax miscalculation  krcgtv.comHigh-ranking state lawmakers on Wednesday said they're still trying to figure out how much the average taxpayer will pay due to a mistake at the Department of ...
These New Deductions Can Get You Your Biggest Refund This Tax Season  Refinery29These important tax deductions and exemptions to keep in mind so that you can make sure you get the refund you deserve this year.
LIers react to federal tax code changes  NewsdayEarly tax filers are finding out exactly how the new federal code affects them.
Richest in U.S. Have a Few Tricks to Avoid Democrats' Tax Plans  BloombergIf Democrats want the wealthy to pay more into the U.S. Treasury, they'll need to contend with one fact: the rich are very good at dodging taxes.
California lawmakers propose soda tax, outlawing super-size sugary drinks  Los Angeles TimesCalifornians would be prohibited from buying “Big Gulp”-style sodas at restaurants and shops, and would face taxes on sugar-sweetened soft drinks under bills ...
Did you believe these myths on tax deductions?  Economic TimesSchemes like health insurance, term plans, ULIPs allows tax payers to claim deductions.
For Democrats Aiming Taxes at the Superrich, ‘the Moment Belongs to the Bold’  The New York TimesThe only thing more startling than the flurry of tax proposals Democrats have unveiled in recent weeks is the full-throttle response they've gotten from the public.
People are getting smaller IRS refunds because they didn't adjust their paycheck withholding, says Trump's tax law writer GOP Rep. Kevin Brady  CNBCGOP Rep. Kevin Brady says Americans are seeing smaller 2018 refunds because they got more of their own money in their paychecks.
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Tax queries: How much of my gratuity amount is tax-exempt?  Economic TimesDilip Lakhani, Senior Chartered Accountant, answers queries from our readers on income tax and other levies. I retired from a bank on Oct 1, 2018. My gratuity ...
Tax ombudsmen abolished: Experts raise concern  LivemintIn the absence of the tax ombudsmen, taxpayers should be alert to the structure of the available alternative grievance systems and their limitationsGovt said the ...

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