Tax

Category: I

  • Insurance Contributions

    Description and Definition of Federal Insurance Contributions Act (FICA) The Federal Insurance Contributions Act (FICA) consists of both a Social Security (retirement) tax and a Medicare (hospital insurance) tax. The tax is levied on employers, employees, and certain self-employed individuals. […]

  • Inventory

    Inventory means:property held for sale or for use in the manufacture of goods held for sale. Such property does not qualify for capital gains treatment. Examples of inventory are: • raw materials. • work-in-progress. • supplies used in operations. • finished goods. […]

  • Independent Contractor

    Independent Contractor means:a contractor who is self-employed. The contracting party need not withhold Social Security taxes and federal income tax; the independent contractor is subject to the self-employment tax. Former Revenue Ruling (check if this Rev. Rul. interpretation is […]

  • Interest Income

    Interest Income may have one of the following meanings, depending the context of the term: 1. income derived from an investment on which the payments reflect the time value of money. 2. income derived from transactions in which the payments are for the use or forbearance of money. Description […]

  • Inflation

    Inflation means:a rise in the prices of goods and services, as happens when spending increases relative to the supply of goods on the market-in other words, too much money is chasing too few goods. Inflation constitutes a silent tax increase because taxpayers are pushed into higher tax […]

  • Income Exclusion

    Foreign Earned Income Exclusion Issue You may find information about Foreign Earned Income Exclusion in this Tax Platform of the American Encyclopedia of Law.

  • Innocent Spouse Rule

    Innocent Spouse Rule means:an exception to the general rule that both spouses are jointly and severally liable for the tax liability on a joint return. Under certain circumstances, an innocent spouse does not have joint tax liability. Four requirements must be met for a spouse to obtain […]

  • Individual Taxpayer Identification Number

    Description and Definition of Individual Taxpayer Identification Number (ITIN) A taxpayer identification number for persons who do not qualify for a social security number. It is usually assigned to aliens. Resources See Also Further Reading Individual Taxpayer Identification Number (ITIN) in […]

  • Investment in the Contract

    Description and Definition of Investment in the Contract The total investment cost of an annuity. The portion of your annuity payment attributable to your investment in the contract is not included in your taxable income. Resources See Also Further Reading Investment in the Contract in the […]

  • Installment Sale

    Installment Sale means:a sale in which a seller accepts a mortgage for part of the sale. With an installment sale, the taxpayer agrees to have the purchaser pay him or her over a number of years, and he or she reports the profit on the sale as he or she receives the money instead of…