Advanced English Dialogue for Business – Income tax

Listen to a Business English Dialogue About Income tax

Hailey: Hi Ellie, do you know much about income tax?

Ellie: Yes, it’s the tax you pay on the money you earn from your job or other sources.

Hailey: Right, and it’s usually calculated as a percentage of your income, right?

Ellie: Exactly, and the amount you owe depends on how much you earn and your tax bracket.

Hailey: Are there any deductions or credits that can lower the amount of income tax you owe?

Ellie: Yes, deductions and credits can reduce your taxable income, such as deductions for mortgage interest or credits for education expenses.

Hailey: That makes sense. So, it’s important to take advantage of any available deductions and credits to lower your tax bill?

Ellie: Absolutely, maximizing deductions and credits can help you keep more of your hard-earned money.

Hailey: How often do people typically pay income tax?

Ellie: In most cases, income tax is withheld from your paycheck throughout the year, but you may need to make additional payments or receive a refund when you file your tax return annually.

Hailey: Thanks for explaining, Ellie. Income tax seems like an important part of managing personal finances.

Ellie: No problem, Hailey. Understanding how income tax works can help you make informed financial decisions and minimize your tax liability.