US Tax
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Applicable Federal Rate
Applicable Federal Rate means:an interest rate determined monthly and based on the rate paid by the federal government on borrowed funds. An AFR is provided for short-term, mid-term, and long-term debt. If a seller-financed mortgage provides a rate that is less than the AFR, interest […]
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Trade
Trade means:a business, profession, or occupation; but also may be a commerce transaction. A trade often implies (or may imply) a skilled handicraft, which is pursued on a continuing basis, such as carpentry. Trade or business expenses are deductible, in contrast to nondeductible […]
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Married Filing Jointly
Married Filing Jointly means:a filing-status option for married couples who agree to report their combined income and deductions. In a Married Filing Joint filing status, the taxpayer is married and both he/she and his/her spouse agree to file a joint return. (On a joint return, the […]
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Form 1040
Description and Definition of Form 1040 The U.S. Individual Income Tax Return Form 1040 is the basic "long" form taxpayers file annually with the Internal Revenue Service. Taxpayers with simple returns can use the "short" Form 1040 A or Form 1040 EZ. Description and […]
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Section 1231 Property
Description and Definition of Section 1231 Property Long term depreciable property used in a trade or business such as equipment, vehicles, and rental real estate. Provided Section 1231 assets are held for the required period of time capital gain treatment is available on a profit upon the […]
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Tax Tables
Description and Definition of Tax Tables Tables of tax amounts published by the IRS for taxpayers with taxable income of less than $100,000 to use to compute their income tax. If your taxable income is more than $100,000 you must use the tax rate schedules. Resources See Also Further Reading […]
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Debt Cancellation
Bankruptcy and Other Debt Cancellation Issue You may find information about Bankruptcy and Other Debt Cancellation in this Tax Platform of the American Encyclopedia of Law.
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Hope Scholarship Tax Credit
Description and Definition of Hope Scholarship Tax Credit A tax credit of up to $1,500 based on qualified educational expenses for the first two tax years of post secondary education. Resources See Also Further Reading Hope Scholarship Tax Credit in the West's Tax Law Dictionary Hope […]
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Medicare Tax
Medicare Tax means:the hospital insurance portion of the tax assessed on compensation and self-employment earnings under the Federal Insurance Contributions Act. Medicare tax is an amount paid by individuals during the period in which they earn wages for purposes of providing them with […]
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Foreign Earned Income Exclusion
Foreign Earned Income Exclusion means:an allowed exclusion of up to $70,000 of foreign earned income by a qualifying person working abroad for at least 330 full days out of any period of 12 consecutive months. The person must have a tax home in a foreign country and meet either a bona […]
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