Exempt (from withholding) Free from withholding of federal income tax. A person must meet certain income, tax liability, and dependency criteria. This does not exempt a person from other kinds of tax withholding, such as the Social Security tax.
Excise Tax
Excise Tax A tax on the sale or use of specific products or transactions.
Employee
Employee Works for an employer. Employers can control when, where, and how the employee performs the work.
Electronic Return Originator (ERO)
Electronic Return Originator (ERO) The Authorized IRS e-file Provider that originates the electronic submission of an income tax return to the IRS. EROs may originate the electronic submission of income tax returns they either prepared or collected from taxpayers. Some EROs charge a fee for submitting returns electronically.
Electronic Preparation
Electronic Preparation Electronic preparation means that tax preparation software and computers are used to complete tax returns. Electronic tax preparation helps to reduce errors.
Electronic Filing (e-file)
Electronic Filing (e-file) The transmission of tax information directly to the IRS using telephones or computers. Electronic filing options include (1) Online self-prepared using a personal computer and tax preparation software, or (2) using a tax professional. Electronic filing may take place at the taxpayer’s home, a volunteer site, the library, a financial institution, the… Continue reading Electronic Filing (e-file)
Earned Income Credit
Earned Income Credit A tax credit for certain people who work, meet certain requirements, and have earned income under a specified limit.
Earned Income
Earned Income Includes wages, salaries, tips, includible in gross income, and net earnings from self-employment earnings.
Direct Tax
Direct Tax A tax that cannot be shifted to others, such as the federal income tax.
Direct Deposit
Direct Deposit This allows tax refunds to be deposited directly to the taxpayer’s bank account. Direct Deposit is a fast, simple, safe, secure way to get a tax refund. The taxpayer must have an established checking or savings account to qualify for Direct Deposit. A bank or financial institution will supply the required account and… Continue reading Direct Deposit