Term
| Adjusted Gross Income (AGI) |
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Definition
Total income - total adjustments
Example:
$19,702.50 - $2,000.00=$17,702.50 (AGI) |
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Term
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Definition
| Adjustments to your total income are current year moving expenses, Archer MSA contributions, IRA deductions, self-employment health insurance deductions, penalty for early withdrawal of savings, student loan interest listed on the 1040 form, one-half of self-employment tax, and alimony paid. |
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Term
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Definition
| If you do not have any qualifying children, you earned less than $10,700, and you or your spouse were at least 25 years old and meet other qualifications or if you have one qualifying child and you earned less than $32,121, you may qualify for additional credit. You must complete schedule EIC (earned income credit). |
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Term
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Definition
| The taxpayer is allowed one exemption per dependent. You may subtract a deduction of $3,000 from your taxable income in 2002 for each dependent. |
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Term
| Federal Unemployment Tax Act (FUTA) |
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Definition
| This tax helps fund the state's employment offices. It is set by Congress and can be as low as 0.8% or as high as 6.2% on the first $7,000 earnings per year for each employee. |
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Term
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Definition
| Amounts subtracted from adjusted gross income before tax is computed. Deductions are listed on Schedule A. Examples of allowed deductions are on page 256-257. |
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Term
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Definition
| If you do not itemizeyour deductions, you may take a standard deduction - see page 257 for amounts. Additional amounts are allowed if you or your spouse is blind and/or over the age of 65. |
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Term
| State Unemployment Tax Act (SUTA) |
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Definition
| This tax is levied on a certain portion of an employer's payroll on the basis of the gross wages paid to the employees. This tax helps fund what the state pays as unemployment compensation. |
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Term
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Definition
| The amount of income subject to tax. |
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Term
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Definition
| Includes all the income you receive, such as wages, salaries, tips, dependent care benefits, see page 257 for list....... |
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