Income Tax Preparation - E

Electronic filing (e-file)

admin — Tue, 12 Oct 2010 03:47:32 +0000

The transmission of tax information directly to the IRS using telephones or computers.

Electronic preparation

admin — Tue, 12 Oct 2010 03:47:32 +0000

Electronic preparation means that tax preparation software and computers are used to complete tax returns. Electronic tax preparation helps to reduce errors.

Electronic Return Originator (ERO)

admin — Tue, 12 Oct 2010 03:47:32 +0000

The Authorized IRS e-file Provider that originates the electronic submission of an income tax return to the IRS.

Employee

admin — Tue, 12 Oct 2010 03:47:32 +0000

Works for an employer. Employers can control when, where, and how the employee performs the work.

Excise tax

admin — Tue, 12 Oct 2010 03:47:32 +0000

A tax on the sale or use of specific products or transactions.

Exempt (from withholding)

admin — Tue, 12 Oct 2010 03:47:32 +0000

Free from withholding of federal income tax. A person must meet certain income, tax liability, and dependency criteria.

Exemptions

admin — Tue, 12 Oct 2010 03:47:32 +0000

Amount that taxpayers can claim for themselves, their spouses, and eligible dependents. There are two types of exemptions-personal and dependency. Each exemption reduces the income subject to tax.

Earned income

admin — Tue, 12 Oct 2010 03:47:32 +0000

Includes wages, salaries, tips, includible in gross income, and net earnings from self-employment earnings.

Earned Income Credit

admin — Tue, 12 Oct 2010 03:47:32 +0000

A tax credit for certain people who work, meet certain requirements, and have earned income under a specified limit.