Ability to Pay: A concept of tax fairness that states that people with different amounts of wealth or different amounts of income should pay tax at different rates. Wealth includes assets such as houses, cars, stocks, bonds, and savings accounts. Income includes wages, interest and dividends, and other payments.
Benefits Received: A concept of tax fairness that states that people should pay taxes in proportion to the benefits they receive from government goods and services.
Citizen or Resident Test: Assuming all other dependency tests are met, the citizen or resident test allows taxpayers to claim a dependency exemption for persons who are U.S. citizens for some part of the year or who live in the United States, Canada, or Mexico for some part of the year.
Deficit: The result of the government taking in less money than it spends.
Earned Income: Includes wages, salaries, tips, includible in gross income, and net earnings from self-employment earnings.
Federal/State E-File: A program sponsored by the IRS in partnership with participating states that allows taxpayers to file federal and state income tax returns electronically at the same time.
Gasoline Excise Tax: An excise tax paid by consumers when they purchase gasoline. The tax covers the manufacture, sale, and use of gasoline.
Head of Household Filing Status: You must meet the following requirements: 1. You are unmarried or considered unmarried on the last day of the year. 2. You paid more than half the cost of keeping up a home for the year. 3. A qualifying person lived with you in the home for more than half the year. However, a dependent parent does not have to live with the taxpayer.
Income Taxes: Taxes on income, both earned and unearned. Income taxes can be levied on both individuals and businesses.
Lobbyist: A person who represents the concerns or special interests of a particular group or organization in meetings with lawmakers. Lobbyists work to persuade lawmakers to change laws in the group's favor.
Contact a Tax Attorney today for more information.
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