Income Tax Help

2007-03-08 10:33:40

( Financial )



Taxes help a lot in building structures, providing health care, etc. As a citizen, it is your duty to pay taxes. If you have income tax questions, go and seek income tax help if you do not understand some of the terms related to tax.

When you seek income tax help, you will encounter some of these terms to remember in your income tax preparation. First is adjusted gross income. This refers to your gross income which you have accumulated within a year.

Second is the tax credit. This refers to the amount that will be credited to you on your tax bill. When you seek income tax help, it will be explained to you that you may sometimes even receive a refund on your federal income tax return because of tax credits.

Third is the deduction. This is the deduction the state will make from your gross income from which you will be taxed.

Fourth is the standard deduction. Fifth is the itemized deduction. You may want to ask income tax help to guide you in doing this. Some of your state taxes, your medical expenses, and other expenses are deducted from your income before it will be taxed.

Sixth is the exemption. This corresponds to the number of your dependents. The more dependents you have, the greater will be your exemption.

Seventh is the progressive taxation. Your income will fall under a specific level. Different levels will be subjected to different tax rates.

Eighth is the taxable income. After all the deductions and credits you have made to your gross income, the result will be your taxable income.

Ninth is the voluntary compliance. You don’t need to seek income tax help for this. This is your chance to perform your duty which is to voluntarily and honestly declare your income.

Tenth and last is the withholding tax. This is the tax amount withheld from your income during the course of the year.


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