Is it Good for ALL Kids?
Tax & Budget
Glossaries
| Term | Definition |
|---|---|
| Effective Tax Rate |
The share of income a family spends on taxes. This is calculated by dividing the amount families pay in taxes by their annual household...
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| Excise Tax |
A tax directly levied on certain goods by a state, such as fuel, liquor, or cell phone plans. They are paid by the merchant before the goods can be...
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| Nonrefundable Tax Credit |
Reduces the taxes owed -allows a taxpayer to only receive a reduction of their tax liability until it reaches zero.
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| Refundable Tax Credit |
Allows a taxpayer to receive a refund if the credit they receive is greater than their tax liability.
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| Tax Credit |
A dollar-for-dollar amount that a taxpayer claims on their tax return to reduce the income tax they owe. You can use this to reduce yourtax bill and...
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| Tax Liability |
The amount of taxes owed by a taxpayer to the government before taking into account allowable tax credits.
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| Tax Policy |
Policies that determine how we collect taxes.
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