Direct Tax

Description and Definition of Direct Tax A tax that is paid directly. A direct tax cannot be shifted to others. Indirect taxes, such as tariffs and business taxes, can be shifted to others. A good example of a direct tax is the Federal income tax. Resources See Also Further Reading Direct Tax […]


Description and Definition of Disabled A person is permanently and totally disabled if both of the following apply: he or she cannot engage in any substantial gainful activity because of a physical or mental condition; and a physician determines that the condition has lasted or can be expected […]

Defined Benefit Plan

Description and Definition of Defined Benefit Plan A retirement plan that pays benefits based on actuarial projections. The amount of contributions to the plan are determined by the present value of the amount of funds necessary to provide the benefits that are to be paid. Resources See Also […]

Declining Balance Method

Description and Definition of Declining Balance Method A method of depreciation which uses a constant percentage based upon the useful life of the asset. The percentage is applied to the adjusted basis of the asset each year to determine the deduction. Resources See Also Further Reading […]


Deficiency means:
the excess of a taxpayer's correct tax liability for the taxable year over the amount of taxes previously paid for that year. It is a concept used in the United States. The U.S. Internal Revenue Service is authorized to assess deficiencies during an audit of the […]

Deferred Gain on the Sale of Your Home

Description and Definition of Deferred Gain on the Sale of Your Home Prior to May 7, 1997, if you sold your personal residence for a profit you could defer paying income tax on the gain if the next house you bought was more expensive than the one you sold. The law changed in 1997. With the new […]

Direct Deposit

Direct Deposit means:
an arrangement whereby a taxpayer who files electronically and meets certain eligibility requirements can elect to have his or her refund deposited directly into a savings or checking account. This allows tax refunds to be deposited directly to the taxpayer's […]

Dependency Exemption

About Dependency Exemption: Amount that taxpayers can claim for a "qualifying child" or "qualifying relative". Each exemption reduces the income subject to tax. The exemption amount is a set amount that changes from year to year. One exemption is allowed for each qualifying […]


Deduction means: an amount allowed to taxpayers under the Internal Revenue Code as an offset against gross income or Adjusted Gross Income. See also other Tax Terms and Definitions in U.S.A. itemized deductions; standard deduction. Either the standard deduction or the itemized deduction is […]


Decedent means:
a person who has died. Description and Definition of Decedent A person who has died. Resources See Also Further Reading Decedent in the West's Tax Law Dictionary Decedent in "A Dictionary of Taxation"