Tag: tax

Taxable interest income Interest income that is subject to income tax. All interest income is taxable unless specifically excluded.

Tariff A tax on products imported from foreign countries.

Support For dependency test purposes, support includes food, clothing, shelter, education, medical and dental care, recreation, and transportation. It also includes welfare, food stamps, and housing provided by the state. Support includes all income, taxable and nontaxable.

Standard Deduction Reduces the income subject to tax and varies depending on filing status, age, blindness, and dependency.

Software Developer Develops software for the purposes of (1) formatting electronic tax return information according to IRS specifications, and/or (2) transmitting electronic tax return information directly to the IRS.

Social Security Tax Provides benefits for retired workers and their dependents as well as for the disabled and their dependents. Also known as the Federal Insurance Contributions Act (FICA) tax.

Sin Tax A tax on goods such as tobacco and alcohol.

Single Filing Status If on the last day of the year, you are unmarried or legally separated from your spouse under a divorce or separate maintenance decree and you do not qualify for another filing status.

Self-Employment Tax Similar to Social Security and Medicare taxes. The self-employment tax rate is 15.3 percent of self-employment profit. The self-employment tax is calculated on Schedule SE—Self-Employment Tax. The self-employment tax is reported on Form 1040, U.S. Individual Income Tax Return.

Self-Employment Profit Self-employment income minus self-employment expenses, when self-employment income is greater than self-employment expenses.