Understanding Basic Tax Terms


If your like many, you don't always understand what people are talking about when it comes to Taxes. It's important to know the main tax terminology, especially when tax season comes around. Knowing the basics will make tax season less of a hassle for you, and maybe even save you some money. There are hundreds of terms; Below are some of the most important:

Tax Form
A Tax Form is the form that is filled out and submitted to your government to report all of your tax information for the past year.

Audit
An audit refers to an unbiased examination and evaluation of the financial statements of an individual or organization such as a business. Audit's are performed for the purpose of ensuring that accounting records are fair and consistent, and are following the guidelines laid out for the individual or organization.

Capital Gain
Capital Gain refers to the amount of money made on Capital during a given tax period. For example if you own a house, and over the past year the value of your house increased by twenty thousand dollars, you would have to claim this twenty thousand dollars as a capital gain in your income taxes.

Capital Loss
Capital Gain refers to the amount of money Lost on Capital during a given tax period. For example if you own a house, and over the past year the value of your house decreased by twenty thousand dollars, you would have to claim this twenty thousand dollars as a capital loss in your income taxes.

Child Tax Credit
Child tax credits are tax credits that are given to the caregivers for each dependent child, that at the end of the tax year is under 17.

Flat Tax
Flat tax refers to a system where everyone is taxed at the same rate, regardless of how much they earn.

Gross Income
Gross income is an individuals or corporations total income before any taxes or deductions have been applied to the sum.

Net Income
Net Income is the total amount of income after all deductions and expenses.

Property Tax
Property tax is a tax that is assessed on real estate value by a local government.

Feel free to reprint this article as long as you keep the following caption and author biography in tact with all hyperlinks.

Ryan Fyfe is the owner and operator of Taxes Area. Which is a great web directory and information center on Taxes and related issues like Income tax and property tax.



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MORE RESOURCES:

CTV.ca

Dion touts 'green shift' in taxation
National Post, Canada - 1 hour ago
In a speech to the Canadian Club of Toronto, Mr. Dion mounted a passionate defence of his "green shift" proposal, which would cut taxes on income but impose ...
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guardian.co.uk, UK - 22 minutes ago
TALLINN, May 16 (Reuters) - Estonia needs new taxes in order to fund the budget for 2009 and cannot rely solely on cutting public sector costs to make ends ...


Taxes catch up to online sales
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Times Online

Stability and certainty in business taxes are just as important as ...
Scotsman, United Kingdom - 9 hours ago
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guardian.co.uk - Times Online
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Indianapolis Star, United States - 1 hour ago
Please point me to a directive that I must pay for the death of people of foreign lands and for the devices developed, manufactured and utilized to kill. ...


The Province

Metro hit hardest by gas taxes
Vancouver Sun,  Canada - May 15, 2008
While consumers know the pump price includes taxes, just how much isn't clearly set out. That's why once a year the taxpayers federation likes to remind ...
Gasoline taxes denounced The Province
Canadian Taxpayers Federation calling for lower gas taxes and more ... 680 News
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Inside NoVA

Tax the fellow behind the tree
Roanoke Times, VA - 1 hour ago
That is the dilemma facing all levels of government when it comes to levying taxes. People expect governmental services but are too often reluctant to pay ...
Kaine's tax plan gets tepid backing from Democrats The Virginian-Pilot
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Brazil halts taxes on wheat, bread
Houston Chronicle, United States - 14 hours ago
2008 AP SAO PAULO, Brazil — The Brazilian government is suspending sales taxes on wheat, wheat flour and bread until the end of 2008 to counter soaring ...


The Southern Ledger

Schwarzenegger Hints at Raising Taxes
U.S. News & World Report, DC - 16 hours ago
Arnold Schwarzenegger, a longtime foe of one solution—raising taxes—has decided to give voters here a dramatic choice. To close the state's $17 billion ...
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Mankato Free Press - Appeal-Democrat
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Customs broker evades $4.7 million in taxes and duties
Winnipeg Sun, Canada - 16 hours ago
By THE CANADIAN PRESS TORONTO — A Toronto customs broker who evaded $4.7 million in duties and taxes has been sentenced to prison on 16 charges. ...

Taxes - Google News

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