Taxes in any form refers to a stipulated and mandatory payment due to the government of a country. The collection of taxes forms a part of the primary resource of every state and country. The timely and accurate collection of taxes enables the efficient operation of entities as well as the maintenance of many state-owned properties and businesses. This fee and the amount to be paid are primarily determined by the income of the employed or self-employed individual.
The term taxpayer is used to refer to any individual who earns an income and are required by law to make payments based on the taxable portion of this income. This taxable portion refers to the figure used to determine the amount that an individual is expected to pay taxes on for a given year. Deductions, however, are those expenses that minimize the amount of one’s salary that is considered to be taxable. The varied deduction ranges from business expanse such as toll, gas, maintenance, accounting fees and employee salaries and benefits to personal expenses. Personal expenses refer to items such as dental payments, insurance payments and additional income earned.”