Tax Preparation Software Computer software designed to complete tax returns. The tax preparation software works with the IRS electronic filing…
Tax Liability (or total tax bill) The amount of tax that must be paid. Taxpayers meet (or pay) their federal…
Tax-Exempt Interest Income Interest income that is not subject to income tax. Tax-exempt interest income is earned from bonds issued…
Tax Deduction An amount (often a personal or business expense) that reduces income subject to tax.
Tax Credit A dollar-for-dollar reduction in the tax. Can be deducted directly from taxes owed