Taxation of Individuals and Business
Entities
Taxation - ANSWER ✓Imposition of taxes on individuals and
business entities
Individual taxpayer - ANSWER ✓Person subject to taxation as an
individual
Taxes due - ANSWER ✓Amount of taxes owed by an individual
taxpayer
Tax refund - ANSWER ✓Amount of money returned to an
individual taxpayer when taxes paid exceed taxes owed
Dependent - ANSWER ✓Person who qualifies as a taxpayer's
dependent and affects filing status and tax benefits
Filing status - ANSWER ✓Designation used to determine tax
rates and eligibility for tax benefits
Gross income - ANSWER ✓Total income before deductions
AGI deductions - ANSWER ✓Deductions taken to calculate
adjusted gross income
Adjusted gross income (AGI) - ANSWER ✓Income after
subtracting AGI deductions from gross income
From AGI deductions - ANSWER ✓Deductions taken after
calculating AGI
, Standard deduction - ANSWER ✓Fixed deduction amount based
on filing status
Itemized deductions - ANSWER ✓Deductions based on specific
expenses incurred
Deduction for qualified business income - ANSWER ✓Deduction
based on income from a qualified business
Taxable income - ANSWER ✓Income after subtracting
deductions from AGI
Tax rates - ANSWER ✓Rates used to calculate income tax
liability
Income tax liability - ANSWER ✓Amount of tax owed based on
taxable income and tax rates
Other taxes - ANSWER ✓Additional taxes imposed on income,
such as alternative minimum tax and self-employment tax
Total tax - ANSWER ✓Sum of income tax liability and other taxes
Credits - ANSWER ✓Amounts that reduce tax liability dollar for
dollar
Prepayments - ANSWER ✓Payments made toward tax liability,
including income taxes withheld and estimated tax payments
Taxes due or (refund) - ANSWER ✓Amount of taxes owed or
refunded after subtracting credits and prepayments from total tax
Form 1040 - ANSWER ✓IRS form used to report taxable income
Entities
Taxation - ANSWER ✓Imposition of taxes on individuals and
business entities
Individual taxpayer - ANSWER ✓Person subject to taxation as an
individual
Taxes due - ANSWER ✓Amount of taxes owed by an individual
taxpayer
Tax refund - ANSWER ✓Amount of money returned to an
individual taxpayer when taxes paid exceed taxes owed
Dependent - ANSWER ✓Person who qualifies as a taxpayer's
dependent and affects filing status and tax benefits
Filing status - ANSWER ✓Designation used to determine tax
rates and eligibility for tax benefits
Gross income - ANSWER ✓Total income before deductions
AGI deductions - ANSWER ✓Deductions taken to calculate
adjusted gross income
Adjusted gross income (AGI) - ANSWER ✓Income after
subtracting AGI deductions from gross income
From AGI deductions - ANSWER ✓Deductions taken after
calculating AGI
, Standard deduction - ANSWER ✓Fixed deduction amount based
on filing status
Itemized deductions - ANSWER ✓Deductions based on specific
expenses incurred
Deduction for qualified business income - ANSWER ✓Deduction
based on income from a qualified business
Taxable income - ANSWER ✓Income after subtracting
deductions from AGI
Tax rates - ANSWER ✓Rates used to calculate income tax
liability
Income tax liability - ANSWER ✓Amount of tax owed based on
taxable income and tax rates
Other taxes - ANSWER ✓Additional taxes imposed on income,
such as alternative minimum tax and self-employment tax
Total tax - ANSWER ✓Sum of income tax liability and other taxes
Credits - ANSWER ✓Amounts that reduce tax liability dollar for
dollar
Prepayments - ANSWER ✓Payments made toward tax liability,
including income taxes withheld and estimated tax payments
Taxes due or (refund) - ANSWER ✓Amount of taxes owed or
refunded after subtracting credits and prepayments from total tax
Form 1040 - ANSWER ✓IRS form used to report taxable income
