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Self-employed taxpayers must make quarterly estimated tax payments. Reserve withholdings are funds set aside for tax purposes on withdrawn investment income. Capital gains tax is payable only after the sale of the investment. Capital losses that exceed capital gains for the year may be used to offset normal taxable income of up to $3,000 in any tax year. A child tax credit is a refundable tax credit claimed by completing Form 1040 and attaching Form 8812 to the return. A corporation is a legal entity separate and distinct from its owners. Corporations have many of the same legal rights and obligations as individuals. A custodian is a bank that holds financial assets in safe custody to minimize the risk of theft or loss. Taxation deadweight loss measures the total economic loss caused by a new tax on a product or service. Deductible taxes are expenses that a taxpayer or business can deduct from their adjusted gross income, which reduces their income, thereby reducing the total tax they must pay. A deduction is an expense that can be deducted from taxable income to reduce the amount owed.