Author: Carol Parker

  • Dual-Status Taxpayer

    United States Tax Concept of Dual-Status Taxpayer An alien who is a resident part of the tax year and a non-resident the other part of the tax year.

  • Market Discount

    United States Tax Concept of Market Discount The difference between what you pay for a bond and its higher face value, attributable to rising interest rates. Bonds are sold for less than their face value when rising interest rates make their stated interest rate less competitive. If you buy a […]

  • Formal Tax

    United States Tax Concept of Formal Tax Legislation Process The process of Congress passing a tax bill and the President signing it into law.

  • Moving Expenses

    United States Tax Concept of Moving Expenses For a qualified job-related move, deductible moving expenses include the reasonable costs of moving yourself, your family, and your possessions if distance and time tests are met.

  • Business Taxes

    United States Tax Concept of Business Taxes Businesses pay taxes on their profits to federal, state and local governments. Businesses also pay unemployment insurance, worker’s compensation, social security and Medicare insurance.

  • Form 1099-INT

    United States Tax Concept of Form 1099-INT A statement that you receive from banks, savings institutions, and other payers of interest income that summarizes your interest income for the year. This form is also used to report other tax items, such as early withdrawal penalties, federal tax […]

  • Itemized Deductions

    United States Tax Concept of Itemized Deductions Items such as deductible interest, medical expenses, state and local taxes, charitable contributions, casualty and theft losses, unreimbursed employee expenses, and miscellaneous deductions that are claimed on Schedule A of Form 1040. These […]

  • Wage Base

    United States Tax Concept of Wage Base The level of earnings to which the full Social Security tax applies. For 1999 the full 15.30% tax applies to the first $72,600 of wages or self-employment income and the 2.9% Medicare portion applies to all income over that level.

  • Patronage Dividend

    United States Tax Concept of Patronage Dividend Taxable distributions of a cooperative’s profits to its members or patrons.

  • Form 1099-DIV

    United States Tax Concept of Form 1099-DIV An annual tax statement that summarizes the dividends you received or that were reinvested for you. The main purpose of this form is to report the dividends you received, income tax withheld from dividends, and foreign taxes paid on dividends.

  • Commuting Expense

    United States Tax Concept of Commuting Expense The cost of traveling from your home to your principal place of work or business. Commuting expenses are generally not deductible. However, there are exceptions for temporary work locations and multiple work locations.

  • Benefits Received

    United States Tax Concept of Benefits Received A Benefits Received system of taxation occurs when people pay taxes in relation to the amount of government benefits they receive. Some of the benefits U.S. citizens receive include welfare, Medicare, and Medicaid. Some people believe […]

  • Direct Transfer

    United States Tax Concept of Direct Transfer A method of moving funds directly from one retirement plan to another. With a direct transfer, you order one sponsor to transfer the funds directly to the other sponsor – you do not take possession of the funds. There is no limit on the number of […]

  • Business Expenses

    United States Tax Concept of Ordinary and Necessary Business Expenses A legal requirement for the deductibility of a business expense. Business expenses must be ordinary and necessary to be fully deductible as current expenses, as opposed to unreasonable expenses.

  • Home Equity Debt

    United States Tax Concept of Home Equity Debt Debt secured by a principal residence or second home to the extent of the excess of the loan above the loan used to buy, build or substantially improve the property. You can deduct as an itemized deduction the interest on home equity debt up to […]