Tag Archives: AD

Adverse Living Conditions

Adverse Living Conditions

Description and Definition of Adverse Living Conditions

The term Adverse Living Conditions relates to the waiver of time requirements for the foreign earned income exclusion. Adverse Living Conditions are war, civil unrest, and similar conditions that prevent a taxpayer from staying in a country. You must show that you would have otherwise stayed in the country long enough to meet the time requirements for the foreign earned income exclusion. The IRS has a strict definition of adverse living conditions, and it publishes a list of qualifying countries.

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Adoption Taxpayer Identification Number

Adoption Taxpayer Identification Number

Description and Definition of Adoption Taxpayer Identification Number (ATIN)

An Adoption Taxpayer Identification Number is applied for and used for a taxpayer's child if the child's adoption is pending. If an authorized adoption agency places a child in your home, you may be able to claim the child as your dependent and also claim the child and dependent care credit.

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Adjustment

Adjustment

Description and Definition of Adjustment

An adjustment is a reduction of your income for expenses, such as IRAs, up to $1,000 of interest on higher education loans, alimony, medical savings accounts, job-related moving expenses, any penalty paid on the early withdrawal of savings, the deduction for 50% of the self-employment tax, and SIMPLE and Keogh deductions.

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Adjusted Gross Income

Adjusted Gross Income

About Adjusted Gross Income:

Adjusted Gross Income (AGI) is the Gross income (including all taxable sources) reduced by a percentage of income (because of certain adjustments), for example charitable contributions, deductible IRA contribution, student loan interest and miscellaneous itemized deductions.

AGI may be defined as an intermediate step in calculating taxable income. It is the key to determining the taxpayer eligibility for certain tax benefits and the phase-out of the taxpayer eligibility for others. It is also the amount used for personal and dependent exemptions and computing deductions (the standard deduction or itemized deductions) based on, or limited by, certain items, such as medical expenses, arriving, then, to the amount of taxable income, the amount on which you income tax bill will be based. See Above-the-line deductions.

In other words, AGI is also the amount from which deductions are deducted. AGI is subtracted by the value of personal and dependency exemptions and by either the standard deduction or the total of the taxpayer itemized deductions. The resulting amount is your taxable income, which will actually be taxed.

In the 1980s, the Adjusted Gross Income amount was determined by the taxpayer from gross income minus business expenses and other deductions, such us alimony payments, IRA contributions and Keogh payments. Itemized deductions for such items as medical expenses, interest payments, and real estate taxes were not reduced to derive adjusted gross income. Former IRC (check if this IRC provision is current here) §62. See Adjusted Gross Income and Adjusted Gross Income in the World Legal Encyclopedia.

Adjusted Gross Income and State Tax

AGI is, from state perspective, the taxpayer federal adjusted gross income from all sources reduced or increased by all state income adjustments. For example, in California. For more information about taxes in California, click here.

In Massachusetts, the Adjusted gross income is the state gross income reduced by business expenses and certain amounts claimed on the state Schedule Y, Lines 1-10, such as alimony paid or student loan interest.

State Income Tax

See Tax exemption and Tax exemption.

Description and Definition of Adjusted Gross Income (AGI)

Your Adjusted Gross Income (AGI) is your gross income less allowable adjustments, such as IRAs, up to $1,000 of interest on higher education loans, alimony, medical savings accounts, job-related moving expenses, any penalty paid on the early withdrawal of savings, the deduction for 50% of the self-employment tax, and SIMPLE and Keogh deductions. AGI is the key to determining your eligibility for certain tax benefits and the phase-out of your eligibility for others such as personal exemptions, itemized deductions, and the rental loss allowance.

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Adjusted Basis

Adjusted Basis

Description and Definition of Adjusted Basis

Your adjusted basis in property is the starting point for determining taxable gain or loss. It is generally your original cost, increased by capital improvements, and decreased by depreciation, depletion, and other capital write-offs. Special rules apply to assets you inherit or receive as a gift. Subtract your adjusted basis in property from its net sales price to determine your gain or loss.

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Adoption Credit

Adoption Credit

Description and Definition of Adoption Credit

An Adoption Credit is a tax credit for qualifying expenses of adopting a child under 18 or adopting a person who is physically and mentally unable to care for himself or herself. This credit effectively refunds to you the first $5,000 for expenses paid to adopt a qualifying child. The credit increases to $6,000 if you adopt a “special needs” child.

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Advanced Earned Income Credit

Advanced Earned Income Credit

About Advanced Earned Income Credit:

advance payment of the refundable earned income tax credit by an employer before the eligible taxpayer files his or her return to claim the credit. Any difference between the advance payment and the actual credit will result in a refund to the taxpayer or the tax due to the U.S. Internal Revenue Service. Former IRC (check if this IRC provision is current here) §32(g).

See State Income Tax in the American Encyclopedia of Law.

Adjusted Current Earnings

Adjusted Current Earnings

About Adjusted Current Earnings:

Or ACE. It may be defined as an adjustment in arriving at a corporation's alternative minimum taxable income. This adjustment increases (or decreases) taxable income by an amount equal to 75% of the excess of ACE over (under) alternative minimum taxable income (determined without regard to the ACE adjustment). In computing ACE before 1994, depreciationwas generally computed using the rules for individuals. Adjusted current earnings include items that are not included in taxable income but are included in earnings and profits, such as tax-exempt interest income and death benefits from life insurance contracts. Former IRC (check if this IRC provision is current here) § 56(g).

See Depreciation in the United States Encyclopedia of Law and Depreciation in the World Encyclopedia of Law.

See Inheritance Tax and Inheritance Tax.

Administrator

Administrator

Administrator means:
a court-appointed individual or bank charged with carrying out the court's decisions with respect to a decedent's estate until it is fully distributed to all claimants. An administrator is appointed when a person dies without having made a will or without having named an executor, or when the named executor cannot or will not serve.