Tax Terms Glossary | Gain Power With Knowledge

Imputed Interest: Interest that for tax purposes a taxing authority considers to have been paid, even though none was.
Income Splitting: A tax strategy that is used by a family to move income from a person in a higher tax bracket to a different member of the family who is in a lower tax bracket.
Income Tax: A tax levied on money earned, whether through wages or business profits.
Independent Contractor: A person or entity that provides goods or services to another who does not control them.
Independent Personal Services: A person who is hired as an independent contractor and is not controlled by the person who hired him. The line between an independent contractor and an employee can sometimes be blurred.
Index Option: A call or put based on an index.
Inflation: Inflation is the rise in prices, or an increase in the money supply. Keynesian economist generally believe inflation is properly defined as an increase in price levels. Austrian economists define inflation as an increase in the money supply.
Information Return: A tax return that provides information to a taxing authority, but does not compute the tax liability.
Inheritance Tax (Estate Tax): A tax imposed on the transfer of an estate upon the death of a person.
In Kind: A distribution or payment in other than currency.
Insolvent: A debtor is insolvent if (1) the sum of the debtor's debts is greater than all of the debtor's assets, or (2) a debtor who is generally not paying his or her debts as they become due. See California Civil Code §3439.02.
Insurance: A contract to compensate a person and make them whole after a loss, damage, or destruction in exchange for a premium.
Insurance Company: An insurance company is a company that is engaged in the business of issuing insurance and/or annuity contracts. See 18 USC §831(c)
Insurance Policy: A contract between the policyholder and an insurance company that describes the conditions that require payment to the policyholder.
Interest: The price paid for borrowing currency, usually expressed as a percentage of what was borrowed.
Internal Revenue Bulletin: A weekly publication produced by the IRS summarizing recent administrative rulings.
Internal Revenue Code (IRC): The body of laws that governs taxation in the United States.
Internal Revenue Service (IRS): The government institution that enforces and collects tax in the United States.
Inventory: Goods and materials held in stock for a business. For securities dealers, their inventory may include stock commodities, futures, forwards, options, or other assets.
Investor: A person or entity that makes an investment.
Investment: Laying out money or capital with the expectation of profits.
Investment Income: Gross income earned from passive investments
Investment Interest Expense: Interest that is paid for the production of investment income, such as interest paid on a margin loan.
Issue: To supply or distribute a thing of value.
Issuer: A corporation or government that sells its own securities to investors.
Itemized Deductions: Eligible expenses that individuals can report on their tax return to reduce their tax liability.