- Canceled Debt
- Forgiven debt on a mortgage or other loan. Canceled debt is generally considered taxable income.
- Capital Gain
- Profit from the sale or trade of an investment property such as stock or real estate.
- Casualty Loss
- A deduction taken for property damage suffered during a disaster or other such event.
- Child Support
- Payments made to an ex-spouse or legally separated spouse for the
care of a child. Child support payments are generally neither taxable
nor deductible.
- COBRA
- The part of the Consolidated Omnibus Budget Reconciliation Act of
1985 that, in many cases, provides continuation of employer sponsored
health insurance for workers who have lost their jobs.
- Combat Pay
- Income earned while serving in a federally declared combat zone. Combat pay is generally nontaxable.
- Community Property
- A law in certain states pertaining to married couples which
stipulates that income and property are owned equally by both spouses.
- Constructive Receipt
- The legal concept that income is taxed at the time it is received,
whether or not you have actually cashed the check or withdrawn the funds
from your account.
- Coverdell Education Savings Account (ESA)
- A tax deductible savings account containing funds for educational
expenses. Interest and qualified withdrawals are generally nontaxable.
- Credit
- A dollar-for-dollar reduction of your taxes owed. Some credits are refundable.
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