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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.


MORE RESOURCES:

Boston.com

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By Joe Schneider on May 24, 2012 New Zealand, which aims to be a smoke-free nation by 2025, will increase cigarette taxes by 10 percent in each of the next four years in a bid to reduce tobacco consumption, the Pacific nation's finance minister said.
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Allentown Morning Call

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NBCSports.com

Former Giants, Eagles player Will James pleads guilty to not paying taxes
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Marketplace.org

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Jerry Brown on Tuesday pitched his proposal to raise the state sales and income taxes to an audience that traditionally opposes tax increases -- members of the California Chamber of Commerce. The Democratic governor wants voters to approve the ...
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NOLA.com

Bills allowing property tax breaks for recruiting companies pass Senate
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By Jeff Adelson, The Times-Picayune BATON ROUGE -- A pair of heavily amended bills allowing local government to opt in to a program that would allow the state to recruit companies by promising to exempt them from property taxes for a limited time ...

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The Star-Ledger - NJ.com

Revenue shortfall imperils tax cut
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Telegraph.co.uk

Even Fewer Greeks Pay Taxes as Crisis Worsens
CNBC.com
Greeks are notoriously reluctant to pay taxes, but even those that do are holding off at the moment until they are sure their country stays in the euro zone. Two tax officials who declined to be named told Reuters that May revenues fell by 15-30 ...
Euro exit worry prompts more Greeks not to pay taxEmirates 24/7

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The Seattle Times

Swiss brace for flood of tax-leery French
The Seattle Times
President François Hollande's proposed 75 percent tax on income exceeding 1 million euros may push rich French citizens to relocate to Switzerland and lower their taxes through the forfait system, a lump-sum cost for foreigners based on expenditure ...

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Bartlesville Radio

Oklahoma lawmakers hit stalemate on tax plan; alternative plan dead on arrival ...
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OKLAHOMA CITY - With less than three days left in the legislative session, House Republican leaders on Wednesday scrapped a highly touted tax-cut plan and came up with another one. But it was dead on arrival in the Senate. Senate President Pro Tem ...
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Like an Anorexic, US Sees Itself Fat With Taxes
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NEW YORK — Are your taxes too high? When Gallup asked that question in April , tax month in the United States, 46 percent said they were. An additional 47 percent said their taxes were “about right.” Just 3 percent said their taxes were too low.


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