ECON 2D03 Lecture Notes - Lecture 11: Earned Income Tax Credit, Standard Deduction, Net Income
Document Summary
The value of income, earnings, property, sales, or other valued items to which a tax rate is applied. In the case of the personal income tax, the tax base in incremental income. Amounts of money for each household member. That can be deducted from household income before personal income tax rates are applied. Amounts of money by which the income taxes payable to the government can be directly reduced. A person or business must meet certain criteria to be eligible for a credit. Federal tax credit for eligible low income working individuals and families. State gov"t may also utilize an eitc for their personal income taxes. A refund is available even if an income earner doesn"t pay taxes, as long as he or she files a tax form. Net income received when an asset is bough at a particular price and sold at a higher price. Usually deducted directly form the paycheck or paid by your employer.
