Section 5 Explanation of Terms
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Financial and Economic Terms Dean Mccorkle and Danny Klinefelter*
EAG- 035 February 2017 Risk Management Series Financial and Economic Terms Dean McCorkle and Danny Klinefelter* General Accounting and Financing flow budget can be compared to the state- ment Terms of cash flows periodically to determine if, when, and where the actual cash flows vary significantly Generally accepted accounting principles from the budgeted amounts. (GAAP) — Concepts, philosophies and Cash flow statement — a financial statement procedures that guide accounting practices that shows the dollars flowing in and out of the and standards for different industries, but business. The cash flow statement is usually not a precise set of accounting rules. Several divided into operating, investing and financing authoritative organizations and boards of the activities. Cash flows are usually presented by the accounting profession are sources of GAAP, week, month, quarter or year for each income and the most authoritative being the Financial expense category. This statement is particularly Accounting Standards Board (FASB). valuable for analyzing the management of cash in Pro forma statements — a financial statement the business. or presentation of data that represents financial Liquidity — the ability of the business to performance based on projections of events and generate sufficient cash to meet total cash conditions. Examples are a pro forma balance demands without disturbing the on-going sheet and a pro forma income statement. operation of the business. Cash and Cash Flow Terms Net cash flow from operations — the amount Cash — cash and funds in checking accounts, of cash available after cash operating expenses are savings accounts and certificates of deposit. It subtracted from cash operating income. is generated by business sales and other receipts Repayment capacity — measures the ability to minus cash operating expenses, debt payments, repay debt from both farm and non-farm income. -
The Standard Deduction and Personal Exemption
The Standard Deduction and Personal Exemption Richard Auxier February 5, 2017 any households reduce their taxable income through the standard deduction and personal This year, Congress will consider what may M exemptions. Both President Donald Trump be the biggest tax bill in decades. This is one and House Republicans have proposed increasing the of a series of briefs the Tax Policy Center has standard deduction and eliminating personal exemptions. prepared to help people follow the debate. Each These changes would simplify tax filing but may benefit focuses on a key tax policy issue that Congress some households and hurt others. and the Trump administration may address. CURRENT STANDARD DEDUCTION AND PERSONAL EXEMPTION AMOUNTS When filing federal income taxes, a taxpayer may claim This is because the largest itemized deductions are for the standard deduction or itemize deductible expenses state and local taxes–which benefits higher earners–and from a list that includes state and local taxes paid, mortgage interest, which only benefits homeowners. mortgage interest, and charitable contributions. Both options lower the tax filer’s taxable income (and thus tax). The standard deduction amount varies by filing type, with married couples filing jointly and heads of households Most Americans (70 percent) use the standard deduction (single filers with dependents) receiving larger benefits because it is larger than the value of the deductions they than single filers (table 1). Filers who are ages 65 and can itemize. In particular, taxpayers with income below older or blind also receive an additional standard $100,000 typically use the standard deduction (figure 1). deduction ($1,250 in 2016). -
Download Income of Families and Persons in the United States: 1960
U. S. DEPARTMENT OF COMMERCE BUREAU OF THE CENSUS Richard M. Scammon, Director tr H. Hodges, Secretary CURRENT POPULATION REPORTS CONSUMER INCOME January 17, 1962 Washington 25, D .C . Series P-60, No. 37 INCOME OF FAMILIES AND PERSONS IN THE UNITED STATES: 1960 (Advance data on the 1960 income of families and persons were issued in June 1961 in Current Population Reports, Series P-60, No. 36. Data for 1959 and 1960 include Alaska and Hawaii which were not covered in earlier years) For the country as a whole, the average (median) of approximately 3+ percent. This was about 1 per- income of familiesin1960 was $5,600; but, for families centage point more than the corresponding average rate headed by persons 65 years and over, the average was for the 13-year period since 1947, reflecting the only $2,900, according to estimates released today by marked upswing in economic activity and the introduc- the Bureau of the Census, Department of Comnerce. The tion of a full-employment economy that took place dur- all-family average was $200, or 4 percent, higher than ing the early 1940's. in 1959, despite the downturn in economic activity in In 1960, about 6 million families (groups Of two "-e closing months of 1960. Since prices rose some- or more related persons residing together) received ft between 1959 and 1960, the gain inreal purchasing money incomes of less than $2,000. They comprised power of the median family in the United States, how- 13 percent of the 453 million families in the Nation. -
Household Income Forecast DRAFT 08.12.2020
Household Income Forecast DRAFT 08.12.2020 HOUSEHOLD INCOME FORECAST Thurston County DRAFT 08.12.2020 Thurston Regional Planning Council Household Income Forecast DRAFT 08.12.2020 Title VI Notice Thurston Regional Planning Council (TRPC) hereby gives public notice that it is the agency’s policy to assure full compliance with Title VI of the Civil Rights Act of 1964, the Civil Rights Restoration Act of 1987, and related statutes and regulations in all programs and activities. Title VI requires that no person shall, on the grounds of race, color, sex, or national origin, be excluded from the participation in, be denied the benefits of, or be otherwise subjected to discrimination under any Federal Highway Aid (FHWA) program or other activity for which TRPC receives federal financial assistance. Any person who believes they have been aggrieved by an unlawful discriminatory practice under Title VI has a right to file a formal complaint with TRPC. Any such complaint must be in writing and filed with the TRPC’s Title VI Coordinator within one hundred and eighty (180) days following the date of the alleged discriminatory occurrence. American with Disabilities Act (ADA) Information Materials can be provided in alternate formats by contacting the Thurston Regional Planning Council at 360.956.7575 or email [email protected]. For more information contact: Michael Ambrogi, Senior GIS Analyst Thurston Regional Planning Council 2424 Heritage Court SW, Suite A Olympia, WA 98502 360.956.7575 [email protected] This report was funded by the cities of Lacey, Olympia, and Tumwater through grants from the Washington State Department of Commerce. -
MAGI 2.0 Part 2: Income Counting
MAGI 2.0: Building MAGI Knowledge Part 2: Income Counting Last Updated: December 11, 2020 Introduction Setting the Stage 3 . In 2020, the Centers for Medicare and Medicaid Services (CMS) updated a training manual originally developed in 2013 to help states and eligibility workers understand and apply Modified Adjust Gross Income (MAGI)-based rules for Medicaid and the Children’s Health Insurance Program (CHIP). The manual is available at https://www.medicaid.gov/state-resource-center/mac- learning-collaboratives/downloads/household-composition-and-income-training.zip. This MAGI 2.0: Building MAGI Knowledge slide deck serves as a companion to the Household and MAGI Income Training Manual, providing more details on how to apply the MAGI-based income counting rules. The issues and scenarios reviewed in this slide deck were developed in response to frequently asked technical assistance questions raised by states and revised based on updated guidance that was released. Two-Part Resource 4 Determining Household Composition Calculating Household Income Focus of This Resource Determining Household Income 5 Key Questions When Determining Household Income: Whose income is counted? What income is counted? Over what period is income counted? Whose Income Is Counted? 6 Generally, to determine MAGI-based household income: . Count the MAGI-based income of adults in the household. Do not count the MAGI-based income of children in the household. Let’s discuss this rule… Income Counting Rules 7 Regulatory Requirements . Household income includes the Relevant Regulatory Language: MAGI-based income of all 42 CFR 435.603(d)(1) individuals in the MAGI-based Household income is the sum of the MAGI-based income…of every household, with specific individual included in the individual’s household [unless an exception exceptions. -
Form W-4, Employee's Withholding Certificate
Employee’s Withholding Certificate OMB No. 1545-0074 Form W-4 ▶ (Rev. December 2020) Complete Form W-4 so that your employer can withhold the correct federal income tax from your pay. ▶ Department of the Treasury Give Form W-4 to your employer. 2021 Internal Revenue Service ▶ Your withholding is subject to review by the IRS. Step 1: (a) First name and middle initial Last name (b) Social security number Enter Address ▶ Does your name match the Personal name on your social security card? If not, to ensure you get Information City or town, state, and ZIP code credit for your earnings, contact SSA at 800-772-1213 or go to www.ssa.gov. (c) Single or Married filing separately Married filing jointly or Qualifying widow(er) Head of household (Check only if you’re unmarried and pay more than half the costs of keeping up a home for yourself and a qualifying individual.) Complete Steps 2–4 ONLY if they apply to you; otherwise, skip to Step 5. See page 2 for more information on each step, who can claim exemption from withholding, when to use the estimator at www.irs.gov/W4App, and privacy. Step 2: Complete this step if you (1) hold more than one job at a time, or (2) are married filing jointly and your spouse Multiple Jobs also works. The correct amount of withholding depends on income earned from all of these jobs. or Spouse Do only one of the following. Works (a) Use the estimator at www.irs.gov/W4App for most accurate withholding for this step (and Steps 3–4); or (b) Use the Multiple Jobs Worksheet on page 3 and enter the result in Step 4(c) below for roughly accurate withholding; or (c) If there are only two jobs total, you may check this box. -
Section 471.--General Rule for Inventories
1 Part I Section 471.--General Rule for Inventories 26 CFR 1.471-3: Inventories at Cost. (Also '' 61; 111; 472; 1.472-2.) Rev. Rul. 2001-8 ISSUE What is the proper method of accounting for payments made or received with respect to “floor stocks”? BACKGROUND A floor stocks provision, which applies to a designated type of goods held in inventory (floor stocks) on a particular date (the “floor stocks date”), is sometimes enacted in conjunction with a tax, change in tax rate, or subsidy that is imposed upon similar goods purchased or produced on or after that date. The purpose of a floor stocks provision is to ensure that all goods sold on or after the floor stocks date are subjected to the same total amount of tax or subsidy, regardless of whether the items sold were goods held as floor stocks on the floor stocks date or goods purchased or produced after that date. This equal treatment is achieved by imposing with respect to goods held on the floor stocks date an amount, to be either paid or received, that will serve to eliminate any differential in total tax or subsidy that would otherwise exist relative to goods subsequently purchased or produced. The Internal Revenue Service, in two previous revenue rulings, has addressed the proper tax treatment of payments received with respect to floor stocks. Rev. Rul. 2 88-95, 1988-2 C.B. 28, and Rev. Rul. 85-30, 1985-1 C.B. 20, generally provide that payments received with respect to floor stocks should be treated as either an item of gross income or a reduction in inventory, depending on whether the cost of the goods to which the payments relate remains in ending inventory under the taxpayer’s cost flow assumption. -
Overview of the SWISS TAX SYSTEM
OVERVIEW OF THE SWISS TAX SYSTEM 10.1 Taxation of Corporate Taxpayers ...................................... 109 10.2 Tax Rate in an International Comparison ........................ 112 10 10.3 Taxation of Individual Taxpayers ..................................... 113 10.4 Withholding Tax ................................................................ 116 10.5 Value Added Tax................................................................ 117 10.6 Other Taxes........................................................................ 120 10.7 Double Tax Treaties .......................................................... 121 10.8 Corporate Tax Reform III .................................................. 121 10.9 Transfer Pricing Rules....................................................... 121 Image Tax return, stock image The Swiss tax system mirrors Switzerland’s federal struc- 10.1 TAXATION OF CORPORATE TAXPAYERS ture, which consists of 26 sovereign cantons with 2,352 10.1.1 Corporate Income Tax – Federal Level independent municipalities. Based on the constitution, all The Swiss federal government levies corporate income tax at a flat rate of 8.5% on profit after tax of corporations and cooperatives. cantons have full right of taxation except for those taxes For associations, foundations, and other legal entities as well as that are exclusively reserved for the federal government. As investment trusts, a flat rate of 4.25% applies. At the federal level, no capital tax is levied. a consequence, Switzerland has two levels of taxation: the -
Itep Guide to Fair State and Local Taxes: About Iii
THE GUIDE TO Fair State and Local Taxes 2011 Institute on Taxation and Economic Policy 1616 P Street, NW, Suite 201, Washington, DC 20036 | 202-299-1066 | www.itepnet.org | [email protected] THE ITEP GUIDE TO FAIR STATE AND LOCAL TAXES: ABOUT III About the Guide The ITEP Guide to Fair State and Local Taxes is designed to provide a basic overview of the most important issues in state and local tax policy, in simple and straightforward language. The Guide is also available to read or download on ITEP’s website at www.itepnet.org. The web version of the Guide includes a series of appendices for each chapter with regularly updated state-by-state data on selected state and local tax policies. Additionally, ITEP has published a series of policy briefs that provide supplementary information to the topics discussed in the Guide. These briefs are also available on ITEP’s website. The Guide is the result of the diligent work of many ITEP staffers. Those primarily responsible for the guide are Carl Davis, Kelly Davis, Matthew Gardner, Jeff McLynch, and Meg Wiehe. The Guide also benefitted from the valuable feedback of researchers and advocates around the nation. Special thanks to Michael Mazerov at the Center on Budget and Policy Priorities. About ITEP Founded in 1980, the Institute on Taxation and Economic Policy (ITEP) is a non-profit, non-partisan research organization, based in Washington, DC, that focuses on federal and state tax policy. ITEP’s mission is to inform policymakers and the public of the effects of current and proposed tax policies on tax fairness, government budgets, and sound economic policy. -
Chapter 2: What's Fair About Taxes?
Hoover Classics : Flat Tax hcflat ch2 Mp_35 rev0 page 35 2. What’s Fair about Taxes? economists and politicians of all persuasions agree on three points. One, the federal income tax is not sim- ple. Two, the federal income tax is too costly. Three, the federal income tax is not fair. However, economists and politicians do not agree on a fourth point: What does fair mean when it comes to taxes? This disagree- ment explains, in large measure, why it so difficult to find a replacement for the federal income tax that meets the other goals of simplicity and low cost. In recent years, the issue of fairness has come to overwhelm the other two standards used to evaluate tax systems: cost (efficiency) and simplicity. Recall the 1992 presidential campaign. Candidate Bill Clinton preached that those who “benefited unfairly” in the 1980s [the Tax Reform Act of 1986 reduced the top tax rate on upper-income taxpayers from 50 percent to 28 percent] should pay their “fair share” in the 1990s. What did he mean by such terms as “benefited unfairly” and should pay their “fair share?” Were the 1985 tax rates fair before they were reduced in 1986? Were the Carter 1980 tax rates even fairer before they were reduced by President Reagan in 1981? Were the Eisenhower tax rates fairer still before President Kennedy initiated their reduction? Were the original rates in the first 1913 federal income tax unfair? Were the high rates that prevailed during World Wars I and II fair? Were Andrew Mellon’s tax Hoover Classics : Flat Tax hcflat ch2 Mp_36 rev0 page 36 36 The Flat Tax rate cuts unfair? Are the higher tax rates President Clin- ton signed into law in 1993 the hallmark of a fair tax system, or do rates have to rise to the Carter or Eisen- hower levels to be fair? No aspect of federal income tax policy has been more controversial, or caused more misery, than alle- gations that some individuals and income groups don’t pay their fair share. -
Gross Income Eligibility Chart
BUS PASS INFORMATION GROSS INCOME ELIGIBILITY CHART House- Gross Income Gross Income Gross Income Bus Pass hold size* Per Week Per Month Per Year Price $322 or less $1,396 or less $16,744 or less No Charge 1 $323 through $459 $1,397 through $1,986 $16,745 through $23,828 Reduced Price $460 or more $1,987 or more $23,829 or more Full Price $436 or less $1,888 or less $22,646 or less No Charge 2 $437 through $620 $1,889 through $2,686 $22,647 through $32,227 Reduced Price $621 or more $2,687 or more $32,228 or more Full Price $549 or less $2,379 or less $28,548 or less No Charge 3 $550 through $782 $2,380 through $3,386 $28,549 through $40,626 Reduced Price $783 or more $3,387 or more $40,627 or more Full Price $663 or less $2,871 or less $34,450 or less No Charge 4 $664 through $943 $2,872 through $4,086 $34,451 through $49,025 Reduced Price $944 or more $4,087 or more $49,026 or more Full Price $776 or less $3,363 or less $40,352 or less No Charge 5 $777 through $1,105 $3,364 through $4,786 $40,353 through $57,424 Reduced Price $1,106 or more $4,787 or more $57,425 or more Full Price $890 or less $3,855 or less $46,254 or less No Charge 6 $891 through $1,266 $3,856 through $5,486 $46,255 through $65,823 Reduced Price $1,267 or more $5,487 or more $65,824 or more Full Price $1,003 or less $4,347 or less $52,156 or less No Charge 7 $1,004 through $1,428 $4,348 through $6,186 $52,157 through $74,222 Reduced Price $1,429 or more $6,187 or more $74,223 or more Full Price $1,117 or less $4,839 or less $58,058 or less No Charge 8 $1,118 through $1,589 $4,840 through $6,886 $58,059 through $82,621 Reduced Price $1,590 or more $6,887 or more $82,622 or more Full Price * Household Size refers to the number of people living in the same house, condominium, apartment, etc. -
Individual Income Tax: Arin / Istock © Sk the Basics and New Changes
PAGE ONE Economics® Individual Income Tax: arin / iStock © sk The Basics and New Changes Jeannette N. Bennett, Senior Economic Education Specialist GLOSSARY “In this world nothing can be said to be certain, except death and taxes.” Adjusted gross income: Gross income minus —Ben Franklin specific adjustments to income. (Gross income is the total amount earned before any adjustments are subtracted.) Earned income: Money you get for the work Introduction you do. There are two ways to get earned income: You work for someone who pays Taxes are certain. One primary tax is the individual income tax. Congress you, or you own or run a business or farm. initiated the first federal income tax in 1862 to collect revenue for the Income: The payment people receive for pro- expenses of the Civil War. The tax was eliminated in 1872. It made a short- viding resources in the marketplace. When lived comeback in 1894 but was ruled unconstitutional the very next year. people work, they provide human resources (labor) and in exchange they receive income Then, in 1913, the federal income tax resurfaced when the 16th Amend- in the form of wages or salaries. People also ment to the Constitution gave Congress legal authority to tax income. earn income in the form of rent, profit, and And today, the federal income tax is well established and certain. interest. Income tax: Taxes on income, both earned (salaries, wages, tips, commissions) and 16th Amendment to the U.S. Constitution (1913) unearned (interest, dividends). Income taxes can be levied on both individuals The Congress shall have the power to lay and collect taxes on incomes, from whatever (personal income taxes) and businesses source derived, without apportionment among the several States, and without regard (business and corporate income taxes).