income-tax

A man files his income-tax return online.

Definition

1. Noun:
   • A tax on income: "income-tax" refers to a levy imposed by a government on the financial earnings of individuals, businesses, or other legal entities within its jurisdiction. It is typically calculated as a percentage of taxable income and is used to fund public services.

Usage Examples

• (She must submit the official document reporting her earnings and tax owed to the government.)
• (The government increased the percentage of tax applied to the income of people with large salaries.)
• (He got money back from the government because his tax payments exceeded the amount he actually owed.)

Advanced Usage

• "Income-tax bracket": a range of income levels that determines the rate at which income-tax is applied.
  • Moving into a higher income-tax bracket means paying a larger percentage of your earnings in tax. (As your income increases, you may be taxed at a higher rate.)
• "Income-tax deduction": an expense that can be subtracted from total income to reduce the amount of income-tax owed.
  • Charitable donations are a common income-tax deduction. (Donating to charity lowers your taxable income, thus reducing your tax bill.)
• "Income-tax evasion": the illegal practice of not paying income-tax owed to the government.
  • The businessman was arrested for income-tax evasion after hiding millions in offshore accounts. (He broke the law by deliberately avoiding paying the taxes he was required to pay.)

Variants and Related Words

• Income (n): money received, especially on a regular basis, from work, investments, or business.
  • Her annual income from her job is $50,000. (The money she earns each year from employment.)
• Tax (n): a compulsory contribution to state revenue, levied by the government on workers' income and business profits.
  • Everyone must pay tax on their earnings. (A mandatory payment to the government based on what you earn.)
• Taxable (adj): subject to being taxed.
  • Some of your investment gains are taxable. (The government can collect tax on those profits.)
• Taxpayer (n): a person or organization that pays taxes.
  • Every taxpayer must file a return each year. (Anyone who pays taxes must submit a report.)

Synonyms

• Earnings tax: a tax imposed on wages, salaries, and other compensation.
• Revenue tax: a broad term for taxes collected by the government to generate revenue.
• Direct tax: a tax paid directly to the government by the person on whom it is imposed (e.g., income-tax).

Related Idioms

• "Pay your fair share of income-tax": to pay the amount of tax that is considered appropriate based on one's earnings.
  • The debate is about whether the wealthy are paying their fair share of income-tax. (Whether high-income individuals contribute proportionally to the tax system.)
• "A tax on success": a metaphorical phrase sometimes used to describe income-tax, especially when rates are high for high earners.
  • Some argue that high income-tax rates are a tax on success, discouraging hard work. (Critics claim that taxing high incomes unfairly penalizes achievement.)

Phrasal Verbs

• "To tax someone on something": to impose a tax on a specific type of income or transaction.
  • The government will tax you on your rental income. (You must pay income-tax on money earned from renting property.)
• "To deduct from income-tax": to subtract an allowable expense from taxable income.
  • You can deduct mortgage interest from your income-tax. (You can lower your taxable income by the amount of mortgage interest paid.)