Tag: TERM

Transmitter Sends the electronic return data directly to the IRS.

Transmit To send a tax return to the IRS electronically. Tax returns prepared on paper can be sent through the mail.

Transaction Taxes Taxes on economic transactions, such as the sale of goods and services. These can be based on a set of percentages of the sales value (ad valorem-sales taxes), or they can be a set amount on physical quantities (“per unit”-gasoline taxes).

Tip Income Money and goods received for services performed by food servers, baggage handlers, hairdressers, and others. Tips go beyond the stated amount of the bill and are given voluntarily.

Telephone Tax Refund Taxpayers are eligible to file for refunds of all excise tax they have paid on long-distance service billed to them after Feb. 28, 2003.

Tax Shift The process that occurs when a tax that has been levied on one person or group is in fact paid by others.

Tax Preparation Software Computer software designed to complete tax returns. The tax preparation software works with the IRS electronic filing system.

Tax Liability (or total tax bill) The amount of tax that must be paid. Taxpayers meet (or pay) their federal income tax liability through withholding, estimated tax payments, and payments made with the tax forms they file with the government.

Tax Exemption A part of a person’s income on which no tax is imposed.

Tax-Exempt Interest Income Interest income that is not subject to income tax. Tax-exempt interest income is earned from bonds issued by states, cities, or counties and the District of Columbia.