income tax Hear it!

income tax Definition

income tax

noun

a tax on income or on that part of income which exceeds a certain amount

income tax Finance Definition

An annual federal tax that U.S. citizens, residents, and corporations have to pay on income. Some state and local governments have income taxes as well. Income tax was created in 1913 by the Sixteenth Amendment to the Constitution. The federal tax is progressive, meaning that it taxes an increasingly large percentage of personal income as individuals become wealthier.

income tax Law Definition

n

A tax on the net income of an individual or business entity.

income tax Usage Examples

Converse of object

  • pay: Citizens and Corporations must pay income tax on ALL earned money, even if it is earned overseas.
  • cut: The green tax switch - taxing gas-guzzlers and planes to cut income tax - is essential.
  • include: Work in this area includes income tax and capital planning work for individuals and for companies, their shareholders and executives.
  • have: Nevada has no business income tax, corporate shares taxes, state corporation tax, franchise tax, or inheritance tax.
  • change: We'll change income tax to help the less well off and we'll ask the very wealthy to contribute more.

Preposition: at

rate: Otherwise interest will be paid after deduction of income tax at the appropriate rate.

Adjective modifier

  • local: But would a local incomes tax actually hurt poorer areas?
  • corporate: For example, there is no corporate income tax on retained earnings.

Preposition: on

earning: For example, there is no corporate income tax on retained earnings.

Noun used with modifier

business: Nevada has no business income tax, corporate shares taxes, state corporation tax, franchise tax, or inheritance tax.

Modifies a noun

  • purpose: Do I really need to keep books because I know I am below the limit for income tax purposes?
  • charge: A " pre-owned assets " , legislation commenced on 6 April 2005 and imposes an income tax charge on individuals who have such arrangements.
  • rate: To start with corporation tax rates are much lower than income tax rates.
  • incentive: Adopt polluter pays principle Income tax incentives to homes that are energy efficient.