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Vocabulary --> Financing and Budgeting --> Taxes --> Word to learn


Study the following definitions and examples.

 

1.      calculation n., computation; estimate

a.     It took my accountant some time to complete the calculations on my income tax.

b.     According to my calculations, I'll owe less money on my income taxes this year.

 

2.      deadline n., a time by which something must be finished

a.      The deadline for paying this year's taxes is just two weeks away.

b.      My best work is done with strict deadlines.

 

3.      file v., to enter into public record

a.      If you file your taxes late, you will have to pay a fine.

b.      If you believe the tax preparer gave you incorrect information, you should file a complaint with her boss.

 

4.          fill out v., to complete

a.      I usually ask someone to help me fill out my tax form.

b.      Don't forget to sign the tax form after you have filled it out.

 

5.          give up v., to quit; to stop

a.      Bruce gave up trying to prepare his tax return himself and now hires an accountant to do it.

b.      Ms. Gomez is so optimistic that she never gives up.

 

6.      joint adj., together; shared

a.     We opened a joint bank account five years ago.

b.     The couple no longer files joint tax returns.

 

7.          owe v., to have a debt; to be obligated to pay

a.     People are often surprised to discover that they owe more money in income taxes at the end of the year.

b.     As the business grew, the owner paid back loans and owed less money.

 

8.          penalty n., a punishment; a consequence

a.      Anyone who pays less than they should in taxes will face a penalty.

b.      Penalties are imposed to discourage underpayment of taxes by adding a percentage to the taxes you already owe.

 

9.      preparation n., the act of making something ready

a.      Income tax preparation can take a long time.

b.      It is important to do some preparation on your own before hiring an accountant to work on your tax form.

 

10.      refund n., the amount paid back; v., to give back

a.     With the tax refund, we bought two plane tickets.

b.     The government will refund any money that you overpaid.

 

11.      spouse n., a husband or wife

a.      You can claim your spouse as a dependent on your tax return if he or she doesn't earn an income.

b.      My spouse prepares the tax return for both of us.

 

12.      withhold v., to keep from; to refrain from

a.      My employer withholds money from each paycheck to apply toward my income taxes.

b.      Do not withhold any information from your accountant or he will not be able to prepare your tax form correctly.

 
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