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Alimony Paid Deduction You receive a deduction for the amount of alimony you pay to your former spouse. Alimony does not in...
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Allocated Tips These are tips that your employer is required to pay to you if you work in a restaurant, cocktail lo...
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Deduction Any item or expenditure subtracted from gross income to reduce the amount of income subject to tax. ...
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Dependency Exemption Amount that taxpayers can claim for their eligible dependents. Each exemption reduces the income sub...
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Dependent As of 2005 the term dependent means either a Qualifying Child or a Qualifying Relative. You are al...
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Earned Income includes wages, salaries, tips, and net income from a business; it also includes taxable scholarship...
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Electronic Filing (e-file) The transmission of tax information directly to the IRS using telephones or computers. Electronic fi...
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Electronic Preparation Electronic preparation means that tax preparation software and computers are used to complete tax re...
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Estimated Tax If you're an employee, your employer withholds a part of your salary as taxes and sends it to the IR...
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Exemption Amount that taxpayers can claim for themselves, their spouses, and eligible dependents. There are tw...
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Filing Status The category defining the type of tax-return form an individual will use. The filing status is close...
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Financial Records Spending and income records and items to keep for tax purposes, including paycheck stubs, statements...
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Hope Credit The Hope Credit allows up to $1650 for 2007 or $1800 ($3600 if a student in a Midwestern disaster ar...
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Itemized Deductions It allows a portion of certain expenses to be deducted from your AGI much like the Standard Deductio...
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Lifetime Learning Credit The Lifetime Learning Credit allows up to $2000 of credit for a student enrolled in at least one cou...
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Medical Expenses Amounts paid for qualified medical expenses that exceed 7.5% of AGI may be deducted. To qualify for ...
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Moving Expenses Deduction If you move for work related purposes, you can deduct travel costs, lodging, shipping of household i...
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Ordinary Dividends Dividends are what shareholders of a company get, as their part of the share of the company's profit...
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Out of Pocket Job Expenses You can take a deduction for job expenses you incur throughout the tax year that exceed 2% of your A...
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Personal Exemption Can be claimed for the taxpayer and spouse. Each personal exemption reduces the income subject to ta...
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Principal Residence Your primary place of residence, where you live more than half the year, discounting vacation and tr...
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Property Tax Deductible personal property taxes are only those based on the value of personal property such as a ...
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Property Tax Deduction You may be eligible to take a deduction of up to $2,500 of the Indiana property taxes (residentia...
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Qualified Dividends Those dividends for which the issuing company has already paid a certain amount of taxes. You will t...
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Qualifying Child In order to be considered a Qualifying Child, the child must meet the 4 tests set out by the IRS's U...
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Qualifying Relative A qualifying relative is similar to a qualifying child in that it must meet several tests. Generall...
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Self-employment Tax Similar to Social Security and Medicare taxes. The self-employment tax rate is 15.3 percent of self-...
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Single filing status If on the last day of the year, you are unmarried or legally separated from your spouse under a divo...
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Support For dependency test purposes, support includes food, clothing, shelter, education, medical and denta...
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Tax Avoidance An action taken to lessen tax liability and maximize after-tax income.
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Tax basis The tax basis of property you buy is usually its cost. The cost is the amount you pay in cash, debt ...
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Tax Bracket The rate at which an individual is taxed due to a particular income level. Generally a higher income...
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Tax Evasion A failure to pay or a deliberate underpayment of taxes, punishable by IRS sanction and prosecution, ...
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Tax Liability The amount of tax that must be paid. Taxpayers meet (or pay) their federal income tax liability thro...
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Tax-exempt Interest Income Interest income that is not subject to income tax. Tax-exempt interest income is earned from bonds i...
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Taxable Interest Income Generally, any interest that you receive, or that is credited to your account and can be withdrawn, ...
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Tip Income This refers to cash tips you get directly from customers, tips from customers using charge cards tha...
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Tuition and Fees Deduction The Tuition and Fees deductions may reduce your tax liability by up to $4000 dollars. The tuition an...
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Unearned Income includes interest, dividends, capital gains, unemployment compensation, taxable Social Security bene...
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