The federal government levies a tax on personal income. The federal income tax provides for national programs such as defense, foreign affairs, law enforcement, and interest on the national debt.

Provides benefits for retired workers and their dependents as well as for disabled workers and their dependents. Also known as the Social Security tax.

A program sponsored by the IRS in partnership with participating states that allows taxpayers to file federal and state income tax returns electronically at the same time.

The Federal Insurance Contributions Act consists of payments to the Social Security retirement supplement system and the Medicare hospital insurance program. A tax for each component is levied on employers, employees and certain self-employed individuals. These taxes are taken out of your paycheck separately from your income taxes.

An individual, company or association responsible for managing someone else's assets. Fiduciaries include executors of wills and estates, trustees, receivers in bankruptcy and those responsible for managing the finances of a minor.

To mail or otherwise transmit to an IRS service center the taxpayer's information, in specified format, about income and tax liability. This information-the return-can be filed on paper, electronically (e-file), or by telephone (TeleFile).

Your filing status determines your tax bracket and amount of taxes you must pay. The five filing statuses are: single, married filing a joint return, married filing a separate return, head of household, and qualifying widow(er) with dependent child.

Spending and income records and items to keep for tax purposes, including paycheck stubs, statements of interest or dividends earned, and records of gifts, tips, and bonuses. Spending records include canceled checks, cash register receipts, credit card statements, and rent receipts.

This is another term for a proportional tax.

The strict Constitutional steps a proposed tax bill must pass through before it becomes law.

An excise tax paid by consumers when they purchase gasoline. The tax covers the manufacture, sale, and use of gasoline.

This is all the money, goods and property you receive during the year before you reduce it by using adjustments, deductions, or exemptions. People who use the barter system have to include the value of whatever they've received in exchange for services as part of their gross income.

You must meet the following requirements: 1. You are unmarried or considered unmarried on the last day of the year. 2. You paid more than half the cost of keeping up a home for the year. 3. A qualifying person lived with you in the home for more than half the year (except temporary absences, such as school). However, your dependent parent does not have to live with you. A foster child must live with you all year.

A part of your home or other structure on your property for which you qualify to take a deduction for its business use. Strict guidelines are set as to how the room is used if you are claiming home office space on your tax return.

The concept that people in the same income group should be taxed at the same rate. "Equals should be taxed equally."

Taxes on income, both earned (salaries, wages, tips, commissions) and unearned (interest, dividends). Income taxes can be levied on both individuals (personal income taxes) and businesses (business and corporate income taxes).

Performs services for others. The recipients of the services do not control the means or methods the independent contractor uses to accomplish the work. The recipients do control the results of the work; they decide whether the work is acceptable. Independent contractors are self-employed.

A tax that can be shifted to others, such as business property taxes.

A new or developing domestic industry whose costs of production are higher than those of established firms in the same industry in other countries.

The simultaneous increase of consumer prices and decrease in the value of money and credit.

Individuals and interest groups expressing and promoting their opinions about tax legislation.

The IRS usually holds that both signers of a joint return are individually liable for the entire tax due plus penalties and interest. That means that when you sign a joint return you are liable for the entire tax due, even if you later divorce your spouse, did not earn the income that generated the tax and did not know about the omission of income or claiming of erroneous deductions. Under the innocent spouse rule, a spouse may claim not to be jointly liable if he or she did not know about the errors and did not benefit from them.

Nonphysical resources or rights to other assets. Patents, goodwill, permits and computer programs are examples of intangible assets.

Property that does not have value itself, but represents something else. Stocks, bonds and franchises are examples of intangible property. Business furniture and equipment are examples of intangible personal property.

The charge for the use of borrowed money.