Tag: Tax Meanings
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Section 457 Plan
Section 457 Plan means:a deferred-compensation plan established by state and local governments and tax-exempt organizations that allows tax-free deferral of salary up to the lesser of $7,500 or one-third of salary. Description and Definition of Section 457 Plan A deferred compensation […]
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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 […]
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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 […]
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Return of Capital
Return of Capital means:a distribution that is not paid out of the earnings and profits of a corporation. Rather, it is a return of the shareholder's investment in the stock of the company. A return of capital is first applied to reduce the basis of the shareholder's stock to […]
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Executor
About Executor: Executor (executrix) is a person designated to cany out the wishes expressed in a will as to the administration of a decedent's estate and the distribution of the assets in it. An executor may be a bank trust officer, a family member, or a trusted friend. Executrix is the […]
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Net Income
About Net Income: In general. The sum remaining after all expenses have been met or deducted; synonymous with net earnings and with net profit or net loss (depending on whether the figure is positive or negative). Net income is gross income less deductible income-related expenses. Many […]
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Head of Household
About Head of Household: for tax filings, an unmarried taxpayer who maintains a household that is the principal residence of a designated dependent. A filing status with lower tax rates for unmarried or some married persons considered unmarried (for purposes of this filing status) who pay more […]
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Taxable Income
Taxable Income may have one of the following meanings, depending the context of the term: 1. Individuals. Gross income reduced by deductions allowable in obtaining Adjusted Gross Income and further reduced by the standard deduction or itemized deductions and allowed personal exemptions. Former […]
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Mid-month Convention
Mid-month Convention is used. with respect to depreciating residential and nonresidential real property and railroad grading or tunnel bore, a convention whereby property is deemed placed in service or disposed of at the midpoint of the calendar month in which it was placed in service or […]
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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 […]