Topic: Taxes, Tax-related vocabulary 2

VOCABULARY REVIEW: Taxes

Need to review common terms relating to taxes, filing your tax return, etc.? We've got you covered!

Deduction
Definition:
A deduction is an expense that can be subtracted from total income to reduce the amount of income that is taxed.
Example:
Work-related expenses may qualify as tax deductions.

Taxable income
Definition:
Taxable income is the portion of income that is actually subject to tax after deductions and allowances are applied.
Example:
His taxable income was lower because of several deductions.

Tax return
Definition:
A tax return is an official form that taxpayers submit to the government, reporting their income, deductions, and taxes paid.
Example:
She filed her tax return online before the deadline.

Tax refund
Definition:
A tax refund is money returned by the government when a taxpayer has paid more tax than required during the year.
Example:
He received a tax refund because too much tax was taken from his salary.

Tax deadline
Definition:
A tax deadline is the final date by which a tax return must be submitted to avoid penalties or fines.
Example:
Missing the tax deadline can result in extra fees.

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