Common Tax Terms

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Property Tax

is an annual or semi annual charge levied by a local govt. and paid by the owners of real estate within its jurisdiction.

Income Tax

levied directly on personal income, investments, rental income, business, profits, or other income sources.

Tax Deduction

is an expense or other item that’s subtracted from your taxable income.

Tax Exemption

excludes certain income, revenue, or even taxpayers from tax altogether. For example, non profits that fulfill certain req, are granted tax-exempt status by IRS preventing them from having to pay income tax.

Assesment

an official evaluation or determination of the value, amount, or eligibility of something for tax purposes. In simpler terms its how the govt. calculatees how much tax you owe based on property, income, or other taxable items.

Deliquent Tax

only tax obligation that remains unpaid after its due date.

Payment Plan

different ways to pay off a payment like once a month or every 2 months.

IRS (Internal Revenue Service)

the U.S government agency being responsible for enforcing federal tax laws and collecting taxes.