There are currently 12 Definitions in this directory beginning with the letter E.
Any income received for work, such as wages or business income. Earned income also includes net earnings from self-employment and other income received for personal services.
Earned Income Credit (EIC)
A credit that can be paid to low-income workers, even if no income tax was withheld from the worker's pay. To receive the credit, a taxpayer must file a tax return. Unemployment income is not considered earned income for the purposes of calculating EITC.
Credits that reduce the amount of tax due and are based on qualified education expenses that the taxpayer paid during the tax year.
Earned Income Tax Credit. See EIC.
Electronic Filing (e-file)
The computer transmission of a tax return directly to the IRS.
Under common-law rules, anyone who performs services for you is your employee if you can control what will be done and how it will be done. This is so even when you give the employee freedom of action. What matters is that you have the right to control the details of how the services are performed.
Coverdell Education Savings Account
Income that is not included in the taxpayer's gross income and therefore exempt from federal income tax. Certain income may be exempt from tax but must be reported on the tax return.
Exempt (from withholding)
Free from withholding of federal income tax. Must meet certain income, tax liability, and dependency criteria. Does not exempt a person from other kinds of tax withholding, such as social security tax.
The dollar amount that can be deducted from an individual's total income, thereby reducing the taxable income.
Exemptions (Personal or Dependency)
Amount that taxpayers can claim for themselves, their spouses, and eligible dependents. An exemption is a dollar amount that can be deducted from an individual's total income, thereby reducing the taxable income.