A joint tax return is a tax return that both members of a married couple file together (or jointly). It combines the incomes and tax deductions of the two spouses.
Archive for the ‘Daily Definition’ Category
A Joint Tax Return is…
Monday, August 3rd, 2009A Municipal Bond is…
Monday, August 3rd, 2009A Pledge is…
Monday, August 3rd, 2009A pledge is an asset or assets given to a lender as collateral (that is, the lender basically holds the pledge hostage until you pay back your loan, and he gets to keep it if you don’t).
A pledge is also a promise to donate money to a charity or other fundraising cause (so if you “pledge” $5,000, you haven’t actually given it, but you’ve promised to do so).
A Personal Exemption is…
Monday, August 3rd, 2009A personal exemption is a tax deduction that is designed to represent the amount of money you’d need to survive at subsistence level – you subtract this amount from your taxable income. You can claim personal exemptions for yourself, your dependents, and (in certain situations) your spouse.
Cash is…
Monday, August 3rd, 2009Cash is hard currency – money you can hold in your hands. Some businesses don’t accept credit or debit cards, so it makes sense to have some cash on hand if you’re passing through an unfamiliar place.
Form 1099 is…
Monday, August 3rd, 2009Form 1099 is an information return form, a document used to report income that doesn’t come from wages, salaries, or tips to the IRS. There are many different versions of the form, depending on what specific type of income you have to report, for example, to report income from unemployment benefits, you use a form 1099-G.
A Tax Base is…
Monday, August 3rd, 2009A tax base is the total value of everything that can legally be taxed in a particular geographic area. For example, in the United States, the federal tax base is the total value of all taxable assets, property, possessions, and income in the whole country.
A Tax Shelter is…
Monday, August 3rd, 2009A tax shelter is any financial arrangement that minimizes the amount of income taxes you have to pay. For example, if you arrange your company’s expenses so that you qualify for certain tax deductions, you’ve just created a tax shelter.
A Tax Credit is…
Monday, August 3rd, 2009A tax credit is a dollar value you can subtract from your income taxes. For example, if you owe $20,000 in income taxes and you’re entitled to a $2,000 tax credit, you only have to pay $18,000.
An Itemized Deduction is…
Monday, August 3rd, 2009An itemized deduction is an expense that you can report on your tax return that decreases the amount you have to pay in income taxes. There are many expenses that can qualify as itemized deductions (if certain qualifications are met) – medical expenses, losses due to theft, investment interest, and so on.