Income Tax N Definition

Income tax generally is computed as the product of a tax rate times taxable income.

Income tax n definition. Meaning pronunciation translations and examples. Definition long term capital gains tax is a tax on the sale of assets held longer than a year. Income tax is a type of tax that governments impose on income generated by businesses and individuals within their jurisdiction. Definition alternative minimum tax amt is a supplemental income tax that applies to certain individuals in.

An income tax is a tax imposed on individuals or entities taxpayers that varies with respective income or profits taxable income. Importantly capital gains are usually excluded from income taxes and are subject to their own system of taxation. An income tax may be a flat tax which means that all citizens pay the same percentage of their incomes to the government most of the time however an income tax refers to a. A tax on a person s individual income from wages and salary gambling winnings and some other sources.

Long term capital gains tax is often lower than ordinary income tax many investors hold assets for longer than a year in order to qualify for the lesser tax burden of long term capital gains. Income tax definition is a tax on the net income of an individual or a business. Taxation rates may vary by type or characteristics of the taxpayer. A tax on an individual s net income after deductions for various expenses and payments such as charitable gifts calculated on a formula which takes into consideration whether it is paid jointly by a married couple the number of dependents of the taxpayers special breaks for ages over 65 disabilities and other factors.

How to use income tax in a sentence.