tax

(redirected from Tax brackets)
Also found in: Dictionary, Thesaurus, Medical, Financial, Encyclopedia.
Related to Tax brackets: head of household, Tax deductions

tax

n. a governmental assessment (charge) upon property value, transactions (transfers and sales), licenses granting a right, and/or income. These include Federal and state income taxes, county and city taxes on real property, state and/or local sales tax based on a percentage of each retail transaction, duties on imports from foreign countries, business licenses, Federal tax (and some states' taxes) on the estates of persons who have died, taxes on large gifts, and a state "use" tax in lieu of sales tax imposed on certain goods bought outside of the state. (See: income tax, estate tax, gift tax, use tax, unified estate and gift tax, franchise tax)

tax

a levy made by national or local government to pay for services provided by public bodies. There is no inherent power in the Crown to raise money in this way; express provision must be made by statute. Changes to tax law are made annually in the Finance Act(s); periodically the law is consolidated, as for example in the Income and Corporation Taxes Act 1988 or the Taxation of Chargeable Gains Act 1992. See TAXATION.
References in periodicals archive ?
Table 3 includes 5 statements that rate the level of taxpayer satisfaction regarding income tax brackets and rates based on the income tax law No.
The short version is that Alexandria Ocasio-Cortez is proposing a new 70% tax bracket on income above $10 million.
A will owe tax of $430 on this $4,300 since the entire amount fits within the 10% single tax bracket amount of $9,525.
In many cases this does work out (especially if the combined tax bracket is greater than 25%); however, each client's situation is unique and must be considered separately.
For those in the 25 percent tax bracket, the tax is 15 percent.
Taxpayers in higher tax brackets are more likely to receive a higher benefit from this option.
Basically, income smoothing strategies involve (1) reducing taxable income in high-income years by maximizing deductions and shifting income to lower-income years; and (2) increasing income in low-income years by deferring deductions and increasing taxable income to fill up the lower tax brackets. Put another way, the idea is to "fly below the radar," i.e., to keep taxable income below the 3.8% net investment income tax applicable threshold level, and, if that is not possible, to keep taxable income below the PEP and Pease applicable threshold, and, if that is not possible, to keep taxable income below the 39.6% tax bracket.
The only argument we would be left with is how many tax brackets should there be, what income amounts should be associated with each bracket, and the actual tax amount per bracket.
The three most important factors to consider under the quantitative approach are: (i) the portion of the account that consists of after-tax contributions; (ii) the client's adjusted marginal income tax bracket at conversion and the projected marginal tax bracket when distributions are ultimately taken; and (iii) whether the tax is paid from the IRA itself or from outside sources.
If you are in a 25% or higher individual marginal tax bracket, the 0% long-term capital gains tax rate for those in the 10 or 15% bracket (in 2008 through 2010) may provide an incentive for you to transfer appreciated assets to relatives in those lower tax brackets.
This will give the participant the opportunity to withdraw amounts in the zero and lowest tax brackets, which means that deductions are taken out of the highest tax brackets while working and placed into the lowest tax brackets in retirement.