T

Tariff
A tax on imports.
Tax Avoidance
Using legal tax planning strategies to reduce your tax bill.
Tax Base
All resources available to the government for taxation. All of the nation's taxable income added together.
Tax Bracket
A range of incomes that is taxed at a specified tax rate. Also, the bracket into which the last dollar of one's income falls.
Tax Break
A general term for exemptions, credits, deductions, or any legal way to reduce your taxes.
Tax Burden
The total amount of taxes owed by the American people, or by a particular segment of the population.
Tax Code
The entire body of tax laws, regulations, and procedures.
Tax Cut
A reduction of tax rates.
Tax-Deferred
When taxes levied now are owed at a later time, such as interest on IRA contributions.
Tax Evasion
Illegally hiding income from the IRS. Deliberately underpaying taxes or using an abusive tax scheme.
Tax Liability
The total amount of taxes you owe.
Tax Rate
The percentage of income that is owed as tax.
Tax Shelter
An investment, business, or other activity designed primarily to avoid or evade taxes.
Tax Shift
When a tax is levied on one group of people but is in practice paid by another group. Tax shift can also refer to the process of lowering some taxes and making up the revenue by raising or implementing other taxes.
Tax Year
The 12-month period covered by a tax return. Returns for a specific Tax Year are usually filed in the subsequent year. For example, Tax Year 2010 Tax Returns are due to the IRS in 2011.
Taxable Income
Your Adjusted Gross Income reduced by all applicable exemptions, credits, and deductions. The amount of income that is taxed.
Taxpayer Advocate
The Taxpayer Advocate Service is an independent organization within the IRS in charge of resolving problems that may arise between a taxpayer and the IRS. Taxpayer advocates provide free and confidential advice, guidance, and representation. The IRS calls the Advocate Service "your voice inside the IRS". There is at least one taxpayer advocate stationed in every state, as well as in Washington, D.C. and Puerto Rico.
Trust
A type of tax entity that manages a person's assets during their life or after their death. A trust is a separate entity from an individual and is managed by an appointed trustee.