A List of Important Tax Act Legislation
Understanding Taxes
Taxes are classified as payments required by individual citizens that may be incurred in tandem with financial, commercial, employment, and consumer activity. Within a society that required its residents and citizens to satisfy required tax payments, taxes may be fulfilled through a variety of facilities, in addition to variety of means of payment.
This being said, taxes can range in their collection process, procedure of payment, and applicable rates; while certain taxes may be required by the entire populace, other Taxes may be required by a specific group of individuals.
What is a Tax Act?
Within the legal realm of taxation, various tax-based legislative statutes – also known as a ‘tax act’ have been instated; a tax act may vary with regard to any or all applicable locations, countries, nations, districts, and municipality.
Within areas in which sovereign, locational entities exist, such as the United States of America, individual sovereign entities – in the form of individual states or regions – may be permitted to not only institute, but regulate an individual tax act. Conversely, a national tax act may be passed, which may result in the required adherence to implied legislation with regard to a country or nation its entirety; the following are some examples of influential tax acts that have been passed:
Federal Unemployment Tax Act (1939)
In conjunction with economic turmoil taking place within the Great Depression, President Franklin Delano Roosevelt formed federal committees providing financial support and restitution with regard to individuals unable to find employment; refusal in lieu of inability to work would deem a prospective recipient to be ineligible.
Tax Relief Act (1997)
The passing of this tax act allowed for the number of individuals permitted to invest in their respective retirement accounts – standard individual retirement accounts are commonly referred to as ‘IRAs’; as a result, the notion of a Roth IRA account were created that lessen applicable estate taxes with regard to larger initial investments.
Hope Credit Tax Act (1997)
The passing of this tax act may allow eligible students enrolled in collegiate degree programs to receive tax credits with regard to the financing of their respective education; this tax act allows for the tax relief to be undertaken by a spouse, parent, or additional dependent.
An Additional Meaning of TaxACT
TaxACT may also refer to the tax preparation service that shares the same name.TaxACT is electronic tax filing software owned by the Intuit Company that may be facilitated by its users in order to prepare their respective income tax reports:
TaxACT operates with regard to a multitude of functions, ranging from the preparation of income tax withholding reports to calculations of individual tax returns;Tax ACT is fashioned as a ‘field-input’ program, in which users are prompted to input applicable figures and information in order to finalize the calculation of their respective income tax reports
E-File is an online-based tax preparation system that operates through the usage of the Internet, which does not require the user to purchase any additional software; TaxACT offers the opportunity for individuals to utilize online-based tax filing methodology
NEXT: Different Income Tax Acts Across the World
