AGI - ANSWER Adjusted gross income is the gross income LESS deductions
which are allowable, regardless if personal deductions are itemized.
Refundable Credits - ANSWER Credits where the IRS will REFUND the
taxpayer for any amount over the tax liability.
Credits (Nonrefundable) - ANSWER Credits that can only reduce tax liability
to ZERO. Some credits may be carried to other tax years.
Earned Income - ANSWER • Income from PERSONAL SERVICES as
distinguished from income generated by property or other sources.
• Includes all amounts received as wages, tips, bonuses, other employee
compensation, and self-employment income, whether in the form of money,
services or property.
Exemption - ANSWER $3,650 for 2009, allowed by law as a deduction of
income that would otherwise be taxed.
Federal Income Tax Withheld - ANSWER The amount deducted from income
by the payer and paid to the IRS as an advance payment of the taxpayer's
federal income tax.
Gross Income - ANSWER Total WORLDWIDE income received in the form
of money, property, or services that is SUBJECT TO TAX.
which are allowable, regardless if personal deductions are itemized.
Refundable Credits - ANSWER Credits where the IRS will REFUND the
taxpayer for any amount over the tax liability.
Credits (Nonrefundable) - ANSWER Credits that can only reduce tax liability
to ZERO. Some credits may be carried to other tax years.
Earned Income - ANSWER • Income from PERSONAL SERVICES as
distinguished from income generated by property or other sources.
• Includes all amounts received as wages, tips, bonuses, other employee
compensation, and self-employment income, whether in the form of money,
services or property.
Exemption - ANSWER $3,650 for 2009, allowed by law as a deduction of
income that would otherwise be taxed.
Federal Income Tax Withheld - ANSWER The amount deducted from income
by the payer and paid to the IRS as an advance payment of the taxpayer's
federal income tax.
Gross Income - ANSWER Total WORLDWIDE income received in the form
of money, property, or services that is SUBJECT TO TAX.
