What Is “Standard mileage rate”?
05/27/2026
The standard mileage rate is a flat, per-mile dollar amount set by the IRS that taxpayers can use to calculate the deductible costs of operating a vehicle. Instead of saving receipts for every drop of gas and oil change, you simply multiply this IRS-approved rate by the number of eligible miles you drove for business,
What Is “Standard deduction”?
05/27/2026
The standard deduction is a specific, flat-rate dollar amount set by the IRS that automatically reduces your taxable income. It acts as a no-questions-asked tax write-off available to almost all taxpayers, shielding a portion of your earnings from federal income tax. By lowering your overall taxable income, the standard deduction directly reduces the amount of
What Is “ Social Security benefits ”?
05/27/2026
Social Security benefits are monthly financial payments made by the U.S. federal government to eligible retirees, disabled individuals, and their surviving family members. These benefits are funded by taxes collected from workers and employers over the course of a person’s career. Depending on your overall income level, a portion of your Social Security benefits may
What Is “ Small Business Health Care Tax Credit ”?
05/27/2026
Small Business Health Care Tax Credit Glossary The Small Business Health Care Tax Credit is a federal tax benefit designed to help small employers offset the cost of providing health insurance to their employees. If you are a small business owner or a tax-exempt organization that pays at least half of your employees’ health insurance
What Is “Single filing status”?
05/27/2026
What Is Single Filing Status? Single filing status is a tax category used by the IRS for taxpayers who are unmarried or legally separated as of the last day of the tax year. It determines your tax brackets and your standard deduction, which is generally lower than the amounts available to other filing statuses. 1.
What Is a “ Short-term payment plan ”?
05/27/2026
What Is a Short-term Payment Plan? A short-term payment plan is an agreement with the IRS that gives you up to 180 days to pay your tax liability in full. It is designed for taxpayers who cannot pay immediately but have a clear path to settling their balance within a few months. 1. Meaning of
What Is “Short-Term Capital Gain”?
05/27/2026
What Is “Short-Term Capital Gain”? A short-term capital gain is the profit earned from the sale of an asset, such as a stock, bond, or real estate, that was held for one year or less. These gains are typically taxed at the same rate as your regular “ordinary” income, rather than the lower preferential rates
What Is “ Severance pay ”?
05/27/2026
Severance pay is compensation or benefits offered by an employer to an employee when they are laid off, fired, or otherwise terminated from a job. For U.S. tax purposes, the IRS considers severance pay to be fully taxable earned income, and it is subject to the same income and payroll taxes as your regular wages.
What Is “Self-employed health insurance deduction”?
05/27/2026
The self-employed health insurance deduction is an IRS tax break that allows eligible self-employed individuals to deduct up to 100% of their health insurance premiums from their taxable income. It is considered an “above-the-line” deduction, meaning you can use it to lower your Adjusted Gross Income (AGI) even if you take the standard deduction. This
What Is “Section 199A Deduction”?
05/27/2026
What Is “Section 199A Deduction”? The Section 199A deduction, commonly known as the Qualified Business Income (QBI) deduction, allows eligible self-employed individuals and small business owners to deduct up to 20% of their qualified business income from their federal tax return. This tax break was designed to provide a significant benefit to “pass-through” entities, helping