Investor Glossary-total taxInvestor Glossary-total taxInvestor Glossary-total taxInvestor Glossary-total taxInsightful stock market charts - Click here
investor
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Total Tax

The HTML to link to this page
 

Total tax represent the total federal taxes a specific taxpayer owes in a given tax year. The equation for total tax is:

Total tax
=
Income tax (based on taxpayer's taxable income)
+
Alternative minimum tax (if applicable)
+
Additional taxes owed (e.g. self-employment tax, IRA or retirement plan tax, unreported social security or medicare taxes, etc.)
-
Tax credits (e.g. education credits, child tax credit, retirement savings contributions credit, etc.)

Total tax is not used to refer to other types of taxes such as sales taxes, estate tax, or property tax. Total tax does not take into account what a taxpayer may have already paid to the US Treasury (e.g. via estimated tax payments or payroll withholding). For individuals, total tax is calculated on Form 1040. To determine whether taxes are owed or a refund is in order, compare total tax to tax payments already made. Estimating total tax is helpful to determine proper withholding and/or estimated tax payments which can minimize tax refund or tax underpayment.



Rate this Total Tax definition...

Learn about investing with the Investor Glossary Term of the Day


Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.


Popular Terms: in escrow, irrevocable trust, FICO score, labor relations, required rate of return, current ratio, debt service coverage, margin rate, risk management, retained earnings, covered put, 1035 exchange, average price per share, phantom income, 144a, Key Rate Duration, implied volatility, quality assurance, cancelled check, reverse mortgage, stock market close, limit order, inflation, liquidity ratio, diluted share, command economy, option premium, EBITDA, ex-dividend, minority interest, FTSE, annual return, 401a, LIBOR, balance sheet, wholly-owned subsidiary, per diem, ex-dividend date, Zero Cost Collar, deferred revenue, stock split, 1031 exchange, VIX, real GDP, deferred tax, class C shares, open position, dividends payable, APR


Investor Glossary | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
Investor Glossary Index >>> # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
©2004-2014 Investor Glossary - All rights reserved - Terms of Use