Direct taxes are those that are levied directly on the taxpayer, without the possibility of shifting the burden to someone else. Income tax, sales tax, and property tax are all examples of direct taxes.

Depreciation is a method of allocating the cost of an asset over its useful life, in order to match the expense of the asset with the revenue it generates.

Straight-line depreciation, declining-balance depreciation, and sum-of-the-years'-digits depreciation are all methods of calculating depreciation.

MACRS is a system for calculating depreciation for tax purposes in the United States. It allows businesses to recover the cost of certain assets more quickly than under other depreciation methods.

A capital gain is the profit from the sale of an asset, while a capital loss is the loss from the sale of an asset. Capital gains and losses are taxed differently from ordinary income and losses.

The AMT is a tax system that is designed to ensure that high-income taxpayers pay a minimum amount of taxes. The AMT is calculated using a different set of rules than the regular income tax system.

Indirect taxes are those that are levied on a transaction, rather than directly on the taxpayer. Sales tax is an example of an indirect tax.

A tax credit reduces the amount of taxes owed, while a tax deduction reduces the amount of taxable income. Tax credits are generally more valuable than tax deductions.

The IRS is the federal agency responsible for collecting taxes, enforcing tax laws, and providing tax assistance to taxpayers.

Interest on municipal bonds, Social Security benefits, and unemployment benefits are all examples of tax-exempt income.

A tax bracket is a range of taxable income, while a tax rate is the percentage of taxable income that is taxed. Taxpayers are taxed at different rates depending on their taxable income.

The standard deduction is a dollar-for-dollar reduction in taxable income. It is designed to reduce the amount of taxes owed, simplify the tax code, and make the tax system more fair.

A progressive tax is a tax where the tax rate increases as the taxable income increases. Income tax is an example of a progressive tax.

The EITC is a tax credit that is designed to reduce the amount of taxes owed by low-income taxpayers. The EITC is refundable, meaning that taxpayers can receive a refund even if they do not owe any taxes.

A regressive tax is a tax where the tax rate decreases as the taxable income increases. Sales tax is an example of a regressive tax.