H to M


April 9, 2018 Facebook Twitter LinkedIn Google+ Tax Terms


H

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 (except temporary absences, such as school). However, a dependent parent does not have to live with the taxpayer.
horizontal equity
The concept that people in the same income group should be taxed at the same rate. “Equals should be taxed equally.”

I

income taxes
Taxes on income, both earned (salaries, wages, tips, commissions) and unearned (interest, dividends). Income taxes can be levied on both individuals (personal income taxes) and businesses (business and corporate income taxes).
independent contractor
Performs services for others. The recipients of the services do not control the means or methods the independent contractor uses to accomplish the work. The recipients do control the results of the work; they decide whether the work is acceptable. Independent contractors are self-employed.
indirect tax
A tax that can be shifted to others, such as business property taxes.
infant industry
A new or developing domestic industry whose costs of production are higher than those of established firms in the same industry in other countries.
inflation
The simultaneous increase of consumer prices and decrease in the value of money and credit.
informal tax legislation process
Individuals and interest groups expressing and promoting their opinions about tax legislation.
interest
The charge for the use of borrowed money.
interest income
The income a person receives from certain bank accounts or from lending money to someone else.
Intermediate Service Provider
Assists in processing tax return information between the ERO (or the taxpayer, in the case of online filing) and the Transmitter.
Internal Revenue Service (IRS)
The federal agency that collects income taxes in the United States.
investment income
Includes taxable and tax-exempt interest, dividends, capital gains net income, certain rent and royalty income, and net passive activity income.
IRS e-file
Refers to the preparation and transmission of tax return information to the IRS using telephone lines or a computer with a modem or Internet access.

L

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.
long-distance telephone tax refund
Taxpayers are eligible to file for refunds of all excise tax they have paid on long-distance service billed to them after Feb. 28, 2003.
luxury tax
A tax paid on expensive goods and services considered by the government to be nonessential.

M

market economy
An economic system based on private enterprise that rests upon three basic freedoms: freedom of the consumer to choose among competing products and services, freedom of the producer to start or expand a business, and freedom of the worker to choose a job and employer.
Married Filing Joint filing status
You are married and both you and your spouse agree to file a joint return. (On a joint return, you report your combined income and deduct your combined allowable expenses.)
Married Filing Separate filing status
You must be married. This method may benefit you if you want to be responsible only for your own tax or if this method results in less tax than a joint return. If you and your spouse do not agree to file a joint return, you may have to use this filing status.
mass tax
A broad tax that affects a majority of taxpayers.
Medicare tax
Used to provide medical benefits for certain individuals when they reach age 65. Workers, retired workers, and the spouses of workers and retired workers are eligible to receive Medicare benefits upon reaching age 65.