returns and allowances define tax return
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- Definition: The Sales Return & Allowances Journal is a special journal that is used to record the returns and allowances of merchandise sold on account.
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Returns inwards and returns outwards Returns inwards are goods returned to the selling entity by the customer, such as for warranty claims or outright returns of goods for a credit. For the customer, this results in the following accounting transaction: 1  A debit (reduction) of accounts payable. 2  A credit (reduction) of purchased inventory.
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What Is the Standard Deduction Per Child on Taxes? Standard Deductions vs. Exemptions. The standard deduction is a tax break you can claim on your tax return instead of claiming itemized deductions, which include things like property taxes, mortgage interest and gifts to charity. Standard deductions don't depend on whether you have children or other dependents; they depend only on your tax filing status.
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- This excerpt taken from the WPI 10-K filed Mar 1, 2007. Provisions for Sales Returns and Allowances. As customary in the pharmaceutical industry, the Companys gross product sales are subject to a variety of deductions in arriving at reported net product sales.hen the Company recognizes revenue from the sale of its products, an estimate of sales returns and allowances (SRA) is recorded which reduces product sales and accounts receivable. These adjustments include estimates for chargebacks, rebates, cash discounts and returns and other allowances.
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What is a 'Standard Deduction' Standard Deduction. What is a 'Standard Deduction'. A base amount of income that is not subject to tax and that can be used to reduce a taxpayer's adjusted gross income (AGI). A standard deduction can only be used if the taxpayer does not choose the itemized deduction method of calculating taxable income.
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- What are allowances against income tax. This information gives details of the different types of allowances and when they can be claimed. Personal Allowance and Blind Person's Allowance are fixed amounts that are set against your income, allowing you to receive that much income free of tax in any one tax year.
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Definition of Valuation Allowance Valuation Allowance. A contra-or reduction account to deferred tax assets. The valuation allowance represents that portion of total deferred tax assets that the firm judges is unlikely to be realized. The probability threshold applied in evaluating realization is 50%.
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Definition of Valuation Allowance Definition of Valuation Allowance Valuation AllowanceA contra-or reduction account to deferred tax assets. The valuation allowance represents that portion of total deferred tax assets that the firm judges is unlikely to be realized. The probability threshold applied in evaluating realization is 50%.
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What Are Allowances on a W-4? Claim one allowance and you will most likely see a refund after filing your tax return, without having the maximum tax withheld from your pay. Claiming two allowances will most likely get you the closest to your tax obligations, but when everything is said and done you may end up owing the IRS a small amount.
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What is a 'Deduction' What is a 'Deduction'. A deduction is any item or expenditure subtracted from gross income to reduce the amount of income subject to income tax. For example, if you earn $40,000 and claim a deduction for $1,000, then your taxable income is reduced to $39,000.
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Withholding Allowances or Exemptions Withholding allowances free approximately the same amount of wages from income tax withholding and therefore approximate the employee's tax liability at the end of the year.
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withholding tax withholding tax. Definition. An amount of an employee's income that an employer sends directly to the federal, state, or local tax authority as partial payment of that individual's tax liability for the year.
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- The entry to establish a tax valuation allowance debits Income Tax Expense and credits the Deferred Tax. Asset Valuation Allowance. The tax valuation allowance is a “contra asset” meaning that its balance is. subtracted from the deferred tax asset account to establish the balance sheet value for deferred tax assets. Firms carrying a “full valuation” allowance report no deferred tax assets on their balance sheets.
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carryback A technique for receiving a refund of back taxes by applying a deduction or credit from a current year to a prior year. also called tax loss carryback. “ If you want to make sure that you are using all the tools available some times you should try a carryback.
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Sales Returns and Allowances In the sales revenue section of an income statement, the sales returns and allowances account is subtracted from sales because these accounts have the opposite effect on net income. Therefore, sales returns and allowances is considered a contra‐revenue account, which normally has a debit balance. Recording sales returns and allowances in a separate contra‐revenue account allows management to monitor returns and allowances as a percentage of overall sales.
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Flexible Spending Accounts (FSA) When your Federal income tax withholding is calculated, you are allowed to claim allowances to reduce the amount of the Federal income tax withholding. In 2017, each allowance you claim is equal to $4,050 of income that you expect to have in deductions when you file your annual tax return.
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What is a 'Standard Deduction' DEFINITION of 'Standard Deduction'. A base amount of income that is not subject to tax and that can be used to reduce a taxpayer's adjusted gross income (AGI). A standard deduction can only be used if the taxpayer does not choose the itemized deduction method of calculating taxable income.
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Definitions &Translations Standard deduction The standard deduction, as defined under United States tax law, is a dollar amount that non-itemizers may subtract from their income and is based upon filing status. It is available to US citizens and resident aliens who are individuals, married persons, and heads of household and increases every year.
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What is an 'Income Tax' What is an 'Income Tax'. An income tax is a tax that governments impose on financial income generated by all entities within their jurisdiction. By law, businesses and individuals must file an income tax return every year to determine whether they owe any taxes or are eligible for a tax refund. Income tax is a key source of funds that the government uses to fund its activities and serve the public.
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What Are Allowances on a W-4? Your W-4 form determines how much tax is withheld from your income based on how many allowances you claim. You can claim a certain number of allowances depending on your life situation. Allowances conclude how little or how much your employer will withhold from your paychecks throughout the year for taxes. In other words, the size of your tax refund or tax due to the IRS after filing your taxes.
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DEFINITION of 'Personal Exemption' DEFINITION of 'Personal Exemption' The dollar amount that each individual taxpayer is able to deduct for him or herself or a dependent each year. A separate personal exemption is accorded to every man, woman and child in the U.S. who must file a return.
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- A tax “return” is a type of “report” that you will send to each government (Federal and State) that states how much you earned, were taxed, and should have been taxed during the year 2016. Most of you will have until April 15, 2017 to file this tax report for 2016.
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What does number of allowances mean in W-4? The number of allowances provides the basis to your employer's payroll department to withhold on your pay. The amount of withholding becomes an estimate of your income tax liabilities for your federal and state income taxes. The greater the number of allowances or exemptions the less tax is withheld. At year end, you will file your income tax return and either owe money to the tax authorities (the IRS in the case of your federal tax) or be receiving a refund relating to the income taxes withheld.
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- Definition: The Purchase Returns & Allowances Journal is a special journal that is used to record the returns and allowances of merchandise purchased on account.
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Deferred Tax Asset and Its Valuation Allowance [with Case Examples] Deferred Tax Asset and Its Valuation Allowance [with Case Examples] If accounting income was greater than taxable income in the year of origination, resulting in a deferred tax liability. If, however, accounting income is less than taxable income, a deferred tax asset results.
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- These excerpts taken from the WPI 10-K filed Feb 23, 2009. Revenue and Provision for Sales Returns and Allowances. As customary in the pharmaceutical industry, our gross product sales are subject to a variety of deductions in arriving at reported net product sales.eturns and Other Allowances  Our provision for returns and other allowances include returns, pricing adjustments, promotional allowances and billback adjustments. Consistent with industry practice, we maintain a return policy that allows our customers to return product for credit.