Taxable Meaning: Definition, Examples, and Translations
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taxable
[ˈtæksəbl ]
Definition
financial context
Taxable refers to income or transactions that are subject to taxation by government authorities. This includes wages, salaries, and other forms of earnings that must be reported for tax purposes. Certain conditions must be met for income to be considered taxable, such as exceeding a specific threshold set by tax regulations. Understanding what is taxable is crucial for compliance with tax laws and ensuring proper financial planning.
Synonyms
Examples of usage
- Your taxable income determines how much you owe in taxes.
- Not all income is taxable; some sources may be tax-exempt.
- Keep track of your taxable deductions to reduce your tax bill.
Translations
To see the translation, please select a language from the options available.
Interesting Facts
Economics
- Taxable income includes wages, bonuses, and investments – essentially any money you earn.
- Different countries have varying rules about what is considered taxable; for example, some gifts or inheritances may not count.
- Taxable items help governments fund public services like education, healthcare, and infrastructure.
History
- The concept of taxation dates back to ancient civilizations; the Egyptians, Greeks, and Romans all had methods to collect taxes.
- In medieval Europe, lords would tax peasants in exchange for protection and land use, evolving into modern tax systems.
- The American Revolution was partly triggered by 'taxable' policies, like the Stamp Act, which taxed printed materials and fuelled the desire for independence.
Law
- Tax laws define what income is taxable and at what rate, influencing personal and corporate financial planning.
- Certain deductions, like those for charitable donations or mortgage interest, can reduce what is deemed taxable income.
- Nonprofits and some organizations may be tax-exempt, meaning they don't pay taxes under specific conditions.
Pop Culture
- Taxable income often appears in movies and TV shows as characters manage their finances or deal with the IRS.
- Comedians frequently joke about taxes, illustrating common frustrations with tax systems in relatable ways.
- Shows like 'The Office' have scenes involving tax discussions, highlighting the universal challenge of navigating finances.
Origin of 'taxable'
Main points about word origin
- The word 'taxable' comes from the Middle English word 'tax' combined with the suffix '-able', meaning capable of being taxed.
- In the 15th century, the word was first used to describe income or property that could be taxed by authorities.
The word 'taxable' originates from the late 14th century, deriving from the Old French word 'taxer' meaning to assess or impose a tax. This, in turn, comes from the Latin 'taxare', which means to touch, estimate, or evaluate. The concept of taxation has existed since ancient civilizations, where rulers imposed taxes on goods, land, and income to fund public services and government operations. Over time, the term evolved to specifically denote income or property that can be subjected to tax assessments. The growth of government and its need for revenue led to more formalized tax structures, particularly during the Renaissance and into the modern era, resulting in specific legislation that defines what constitutes taxable income in contemporary society.