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.

In The News:

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Withdrawing Rs 10 lakh a year may attract 3-5% tax: Finance Ministry  India TodayWithdrawing a cumulative Rs 10 lakh a year can attract 3-5 per cent tax if a proposal going around in the Finance Ministry takes shape in the Budget to track high ...
Digital economy taxation: OECD’s roadmap and implications for India  Economic TimesBy Ajay Rotti In today's world, with technology seeping into virtually every section of the economy, the 'digital economy' is becoming intertwined with the ...
Eco-taxes on the anvil to induce ‘green’ behaviour: GST official  The Hindu'The revenue will be spent for an environmental cause.'
G20 countries agree to close tax loopholes for tech companies  EngadgetTech giants are already finding themselves on the hook for more taxes in parts of Europe, but there could now be a much more coordinated effort to have them ...
New York Can Tell Congress Lots About Trump’s Taxes  The New York TimesHis state returns will give the House a glimpse of past I.R.S. audits, before and after he entered the Oval Office.
Most millionaires support a tax on wealth above $50 million, CNBC survey says  CNBCA majority of millionaires support Sen. Elizabeth Warren's proposed tax on large wealth, according to the CNBC Millionaire survey.
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IT industry, startups meet Anurag Thakur to discuss data protection, tax issues  YourStoryAhead of the Budget, representatives of tech sector and industry bodies like Nasscom, IAMAI, and MAIT met Minister of State for Finance Anurag Thakur on ...
No taxes owed by GMR from $270-million arbitration award: Maldives  LivemintThe Maldivian government in 2017 had slapped a notice seeking $20.5 million.The arbitration ruling indemnified the Indian developer from any tax liabilities.
Martin Feldstein, economist who nudged Ronald Reagan to raise taxes, dies  Business StandardMartin Feldstein, the former chairman of the Council of Economic Advisers who successfully persuaded President Ronald Reagan to cut budget deficits by ...
A Former Business Partner Alleges the Trumps Evaded Taxes in Panama  The New York TimesThe owners of a luxury hotel in Panama City that ousted the Trump Organization as property managers last year accused it on Monday of evading taxes in ...
Bring down corporate tax to 18 pc sans exemptions: CII  Economic TimesCII wants the govt to bring down the corp tax rate to 18 per cent along with elimination of all exemptions.
ITR filing: Don't make these mistakes to avoid getting tax notice  Economic TimesFind out what you should do to avoid getting a notice for small errors on income tax returns.
New York Offers Up Trump's State Tax Returns—But One Lawmaker Stands in the Way  BloombergHouse Democrats clamoring for Donald Trump's tax information have eagerly awaited a newly passed New York law allowing limited access to the president's ...
CM Arvind Kejriwal raises statehood demand, hike in tax share at NITI meet  Times of IndiaChief minister Arvind Kejriwal raised the pitch for full statehood for Delhi and an increase in the share of central taxes at the fifth governing coun.
Millionaire’s Plan to Cut Danish Taxes Lies in Tatters  BloombergLars Seier Christensen, a Danish multimillionaire who co-founded Saxo Bank and owns the nation's best restaurant and a piece of its top football team, suffered ...
Big businesses paying even less than expected under GOP tax law  POLITICOFederal tax payments by big businesses are falling much faster than anticipated in the wake of Republicans' tax cuts, providing ammunition to Democrats who ...
Got a tax notice? Here’s what you should do  Economic TimesMistakes while filing ITR can fetch you a tax notice. Here's how you can respond to such tax notices.
Feds block tax breaks for donating to these charitable state funds  CNBCThe Internal Revenue *Service* and the Treasury Department have issued final rules blocking certain states' attempts to work around the new $10,000 cap for ...
Estate tax amnesty scheme starts today  INQUIRER.netThe Bureau of Internal Revenue (BIR) today starts accepting applications for the much-awaited reprieve for heirs who have yet to pay the taxes due from their ...
Budget 2019: Tax officials likely to seek up to Rs 1.5 lakh crore reduction in collection target  India TodayOfficials from the tax department are likely to ask the finance ministry for a reduction in the tax collection target up to 6 per cent, translating to Rs 1.5 lakh crore, ...
Rich New Yorkers are fleeing to Miami to escape high taxes. I spent 3 days there, and it was immediately clear why so many people are making the move.  Business InsiderNew York millionaires can save more than $1 million in taxes by relocating to Florida, and money goes further in Miami than it does in New York City.
Tax tips 2019: Filing your very first GSTR-9? Avoid these 8 common mistakes  Zee BusinessOne of the forms taxpayers need to keep track of is titled 'annual returns - this comes under Goods and Services Tax (GST) system. For annual returns, filing ...
Erdoğan touts tax-free forex sales for exporters  Hurriyet Daily NewsTurkey's president on June 16 touted the benefits for Turkish exporters in their being exempt from taxes over foreign currency purchases.
Boris Johnson’s proposed income tax cut for those earning over £50,000 is a stinker for the average Brit  The SunBORIS Johnson's first big policy announcement is a stinker. We're all for tax cuts . . . Tories should be tax cutters, above all. But what possessed Boris to think his ...
Paying for the Welfare State Without Raising Taxes | by Roger E.A. Farmer  Project SyndicateDespite the old economic adage that there's no such thing as a free lunch, there is a way for governments to finance social-welfare programs without imposing a ...
Karnataka Wants Goods and Services Tax Compensation Extended Beyond 2022  NDTV NewsKarnataka on Saturday sought extension of the Compensation Act beyond 2022 to bridge the revenue gap likely to arise out of a shortfall in the collection of the ...
G20 Ministers agree to find a common method to tax tech giants  BusinessLineFinance Ministers from Group of 20 nations agreed they need to find a common method to tax technology giants, whose digital business models have grown ...
What to Expect When the IRS Alters Its Bitcoin Tax Policy  CoinDeskThe Takeaway. Coming guidance from the IRS will address longstanding questions about the tax treatment of cryptocurrency. The tax collector has identified ...
GOP leader concedes tax cuts may not pay for themselves as 2019 deficit grows  The Washington PostRep. Kevin Brady (R-Tex.), a lead architect of the GOP tax bill, suggested Tuesday the tax cuts may not fully pay for themselves, contradicting a promise ...
Bring down corporate tax, simplify taxation, revive infra investment: Industry to FM  Economic TimesCII President suggested that a simplified taxation regime is pivotal for improving the revenue flows and help government stick to fiscal prudence without ...
Budget 2019: Will the new direct tax law find a mention in the FM’s speech?  The Financial ExpressBudget 2019-20: The original Direct Taxes Code (DTC) had proposed personal tax rates and income slabs which would lead to higher disposable income for ...
Germany's grand coalition to present bill on property tax reform  Deutsche WelleGermany's grand coalition has reached an agreement regarding property tax reform, according to a joint statement from coalition leaders on Monday.
Boris Johnson promises tax cut for 3m higher earners  The GuardianFormer foreign secretary says he will raise the 40p threshold from £50000 to £80000 if he becomes prime minister.
A step-by-step guide to filling salary details in your income tax return  Business StandardSalaried individuals can file income tax returns (ITR) using the forms ITR-1 or ITR-2. ITR-1 applies to individual resident taxpayers with a total income of up to Rs ...

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