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Tax incentives such as credits and deductions reduce your overall tax liability. A tax credit is the amount of money that taxpayers can deduct, dollar by dollar, from their income taxes. Tax deductions are deducted from your taxable income, thereby reducing the amount of tax you have to pay. The Tax Act grants ownership of real estate to a government agency when the owner fails to pay the appropriate property taxes. Tax deferred status refers to investment income such as interest, dividends or capital gains that accumulate without paying taxes until the investor earns a constructive profit. The Fair Taxation and Accountability Act of 1982 was the largest tax increase in US history adjusted for inflation. Tax evasion can be both illegal non-payment and underpayment of actually due tax liabilities. Tax expenses are the total amount of taxes owed by an individual, corporation or other legal entity to the taxing authority. Tax fraud costs the government millions of dollars a year. Tax havens encourage foreign savers by offering tax breaks to corporations and the wealthy.