- Allowable Deductions? - Deductions or expenditures allowed by IRS to be subtracted from gross income to reduce the taxable income for income tax are called allowable deduction.
- A Medical Savings Account or an MSA? - MSA stands for Medical Savings Account. Medical saving Account is a type of savings account in which tax-deferred deposits can be made and used only for medical expenses.
- AGI - Adjusted Gross Income is an individual's total gross income after the deduction of allowable expenses.
- Child Tax Credit? Federal Income Tax Return - Child Tax Credit is a provision of US Federal Income Tax Law, where parents having dependent children under the age of 17 can claim a tax credit up to $1000 per qualifying child. Like other tax credits, the Child Tax Credit is a type of credit which reduces your tax liability and help the parent or guardians to easily raise their dependent children.
- Federal Income Tax Brackets For The Year 2017 - Definition – Federal Income Tax Brackets Federal Income Tax Brackets are the range of income according to which the percentage of the tax rate is decided and paid to the government by the taxpayer on his taxable income. The taxpayer doesn’t pay taxes on his total income but pays on his taxable income which is […]
- Itemized Deductions? - Itemized Deductions are a type of Allowable deductions in the federal income tax, in which actual expenses are considered instead of Standard Deduction.
- IRA? - An IRA (individual retirement account or individual retirement arrangement) is a tax-favored savings account designed to help individuals save and grow funds for their retirement.
- MAGI - t is calculated by taking your AGI (Adjusted Gross Income) and adding back several deductions. These deductions can be student loan deductions, Deductions of IRA contributions, foreign income, deductions of foreign-housing, adoption expenses and deductions for higher-education costs.
- Pease Limitation On Itemized Deductions? - Pease Limitation on Itemized Deduction is a provision of Internal Revenue Code that reduces non-exempt itemized deductions for taxpayers with high AGI.
- Standard Deduction? - Under the US Tax Law, a fixed amount allowed by the IRS to be deducted from gross income for the purpose of Income tax is called Standard Deduction.
- Tax Exemptions? - What are Tax Exemptions? Tax Exemptions are a form of deduction that IRS allows to every taxpayer in the federal income tax. These tax exemptions reduce your taxable income similar to the allowable deductions. Taxpayer often either don’t pay attention to these tax exemptions and tend to pay higher taxes. Knowing these exemptions will help […]
- Withholding Tax? - Withholding Tax is the amount of income taxes deducted from your paycheck by your employer and directly paid to the government on your behalf. Withholding taxes is a way to collect tax at the source of income instead collecting income tax later.
- 401k Retirement Plan? Contribution Limits & Benefits - A 401k retirement plan is a type retirement plan that can only be sponsored by an employer, in which employees can save and invest a specific portion of their paycheck before taxes.