income tax

Definition of income tax in English English dictionary: A tax levied on earned and unearned income, net of allowed deductions; Tax on a person's income and profits; Taxes levied on net income, that is, on gross income less certain deductions permitted by law These taxes can be levied on individuals or on corporations or unincorporated businesses where the income is taxed distinctly from individual income; The annual tax on income that is levied by the federal government and by certain state and local governments; annual government tax levied on the net income of a person or business; The main source of revenue for the federal government and many states The tax is based on your earned and unearned income You are allowed certain deductions, allowances and credits to reduce your tax, based on laws made by Congress; This is tax you pay on the income you earn each year above a certain amount As well as your salary, income tax is also charged on interest and dividends you receive The amount of tax you pay depends on the amount of money you earn and on your allowances; A payment to federal, state, and local governments based on individual or company earnings; A tax on the income you receive For 1999/2000, there are five different rates of income tax (10%, 20%, 23%, 32 5% and 40%) based on how much income you earn and from what source; This a percentage of your earnings that is taken by the government to pay for national services The amount depends on how much you earn and is graded by earning bands; A tax levied on the incomes of individuals and/or corporations; may be applied to gross (total) income or net income (gross income less deductions for certain expenses); also adjusted gross income; A state or federal government's levy on individuals as personal income tax and on the earnings of corporations as corporate income tax; A tax that is levied on income that a person or business earns; A tax on income; personal income tax is a tax on the income of individuals, and company tax is a tax on the income of incorporated enterprises; is the amount of income paid to the Commonwealth Government which is used to meet its expenses; tax on people's income, and also on business profits in the US; money that wage earners pay the government to run the country The amount of the tax depends upon how much you earn; refers to the tax levied on individual income from various sources like salaries, investments, interest, etc; Tax which is deducted from taxable income in accordance with the taxation laws •Taxation; Money paid to the government based on the taxable income of an entity Governmental tax accounting rules differ, sometimes significantly, from GAAP so an entity's net income for financial reporting may be very different than its taxable income Income tax is usually computed as a percentage of taxable income; A tax based on the amount of a person's annual income The Federal government collects income tax through the Internal Revenue Service (IRS) Some states and cities also collect income tax; If you earn or receive income over a certain amount in a tax year - which runs from 6 April in one year to 5 April in the next - you pay income tax The more you earn the more you pay Your employer will usually take the tax direct from your earnings each time you are paid, and pass it on to us You receive the rest This way of deducting tax is known as PAYE (Pay As You Earn); TRA retirement benefits are taxable as ordinary income, however, the portion of a retirement benefit that represents your cost paid toward the benefit is not taxable; Income tax is a certain percentage of your income that you have to pay regularly to the government. A tax levied on net personal or business income. tax paid on the money that you earn. Levy imposed by public authority on the incomes of persons or corporations within its jurisdiction. In nations with an advanced system of private enterprise, income taxes represent the chief source of government revenue. Income tax levied on individuals or family units is known as personal income tax. In 1799 Britain enacted a general income tax to finance the Napoleonic Wars. In the U.S. an income tax was first tried during the Civil War; the Supreme Court held it to be constitutional in 1881 but declared another income tax unconstitutional in 1894. In 1913 the 16th Amendment to the Constitution made the personal income tax permanent. The fairness of personal income taxation is based on the premise that one's income is the best single index of one's ability to contribute to the support of the government; most personal income taxes are conceived on the theory that when people's financial circumstances differ, their tax liabilities should also differ. Thus U.S. income taxes are progressive taxes, falling more heavily on those who earn more money, and individual income tax deductions are allowed for items such as interest paid on home mortgage debt, unusual medical expenses, philanthropic contributions, and state and local income and property taxes. Enforcement has been facilitated by withholding the tax from wages and salaries. See also capital gains tax; capital levy; corporate income tax; regressive tax; sales tax; value-added tax; The federal government's annual tax which assessed to individuals as personal income tax and on the earnings of corporations as corporate income tax; a personal tax levied on annual income; Annual tax levied by the federal government, most states, and some local governments on individual’s income or corporation’s net profit
income tax return: An official document that income tax payers are required to complete to state income amounts, deductions, contributions and related financial information for tax purposes
income tax returns: plural form of income tax return
income tax bracket: a category of taxpayers based on the amount of their income
income tax clerk: official involved in the processing of annual government tax levied on the net income of a person or business
income tax declaration: form given to the tax authorities stating one's income within one tax year
income tax reform: fundamental change in the method for computing income taxes passed in 1975
income tax return: document giving the tax collector information about the taxpayer's tax liability; "his gross income was enough that he had to file a tax return"
future income tax: Deferred tax is an accounting concept (also known as future income taxes), meaning a future tax liability or asset, resulting from temporary differences or timing differences between the accounting value of assets and liabilities and their value for tax purposes
adjustment of the income tax scales: change in the salary classification system which dictates the estimated taxes to be paid on salaries
corporate income tax: Tax imposed by public authorities on the incomes of corporations. Virtually all countries assess taxes on the net profits of corporations; most are flat-rate levies rather than extensively graduated taxes. A corporate income tax was adopted by the U.S. government in 1909; three-fourths of the states also levy corporate income taxes. See also capital gains tax; income tax
marginal income tax: tax paid on every additional unit of income
negative income tax: payment made by a country to a citizen in order to provide him with the minimum income
tax income: government income due to taxation