Still have to file taxes?

Some key terms to know when filing taxes, and the definitions provided by the Internal Revenue Service:

Adjusted gross income: gross income reduced by certain amounts, such as a deductible IRA contribution or student loan interest.

Dependent: a qualifying child or relative, other than the taxpayer or spouse, who entitles the taxpayer to claim a dependency exemption.

Electronic filing (e-file): the transmission of tax information directly to the IRS using telephones or computers.

Exemptions: amount that taxpayers can claim for themselves, spouses and eligible dependents. There are two types of exemptions: personal and dependency. Each exemption reduces the income subject to tax. While each is worth the same amount, different rules apply to each.

Filing status: determines the rate at which income is taxed. The five filing statuses are: single, married filing a joint return, married filing a separate return, head of household, and qualifying widow(er) with dependent child.

Standard deduction: reduces the income subject to tax, and varies depending on filing status, age, blindness and dependency.

Tax credit: a dollar-for-dollar reduction in the tax. Can be deducted directly from taxes owed.

Tax deduction: an amount (often a personal or business expense) that reduces income subject to tax.

Withholding ("pay-as-you-earn" taxation): money, for example, that employers withhold from employees' paychecks. This money is deposited for the government, and will be credited against the employees' tax liability when they file their returns. Employers withhold money for federal income taxes, Social Security taxes, and state and local income taxes in some states and localities

On the Net:

IRS Glossary: www.irs.gov/app/understandingTaxes/student/glossary.jsp

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