Term
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Definition
| Money collected by the government through taxes |
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Term
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Definition
| Taxes that take a larger share of income as the amount of income grows |
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Term
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Definition
| Taxes for which the rate stays the same regardless of income; also called flat taxes |
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Term
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Definition
| Taxes that take a smaller share of income as the income grows |
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Term
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Definition
| Stated amount taxpayers may subtract from the adjusted gross income instead of itemizing their deductions |
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Term
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Definition
| Income ranges to which different tax rates apply |
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Term
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Definition
| Willful failure to pay taxes |
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Term
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Definition
| The process of listing the allowable deductions on a tax return |
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Term
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Definition
| An amount taxpayers may subtract from their income for each person who depends on their income to live |
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Term
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Definition
| All the taxable income received during the year, including wages, tips, salaries, interest, dividends, alimony, and unemployment compensation |
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Term
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Definition
| Gross income minus allowed adjustments |
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Term
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Definition
| Money paid to a former spouse to support dependent children |
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Term
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Definition
| Money paid to support a former spouse |
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Term
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Definition
| Expenses the law allows taxpayers to subtract from their adjusted gross income to determine their taxable income |
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Term
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Definition
| Income on which you will pay tax |
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Term
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Definition
| An examination of a tax return by the IRS |
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Term
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Definition
| An amount subtracted directly from the tax owed |
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Term
| What is the United State government's largest source of revenue? |
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Definition
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Term
| List five other taxes providing government revenue besides income taxes. |
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Definition
| social security, unemployment insurance, inheritance/estate, excise |
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Term
| Describe the three basic types of taxes. |
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Definition
Regressive, Progressive, Proportional
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Term
| List three services provided by the IRS. |
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Definition
| finding information and forms, printing pamphlets to aid taxpayers, furnishes tax information to schools and colleges |
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Term
| What is the purpose of the IRS? |
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Definition
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Term
| List at least five services the government provides for all citizens from taxes collected. |
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Definition
| roads, healthcare, social services, education, welfare |
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Term
| Who has the ability to levy taxes on the citizens of the United States? |
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Definition
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Term
| What is meant by a tax system based on voluntary compliance? |
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Definition
| Citizens are expected to pay taxes on their own will. |
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Term
| What can happen to you if you deliberately do not file your tax return and pay taxes due? |
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Definition
| You can be fined heavily and/or incarcerated. |
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Term
| List five types of income that are taxable. |
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Definition
| Wages, tips, salaries, alimony, child support |
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Term
| How is child support different from alimony in terms of taxation? |
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Definition
Alimony is income and child support is not taxable for the receiver or sender
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Term
| Explain the standard deduction and when you should itemize. |
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Definition
a stated amount that one may subtract from adjusted gross income instead of itemizing deductions; when you expect the amount to be exceded
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Term
| When must you file your federal income tax return? Why? |
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Definition
| April 15th; Any later date will be fined and interested |
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Term
| Under what circumstances would you file the long Form 1040 tax return? |
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Definition
If you earn more than $50,000 annually or if you have several exemptions
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Term
| Why should you file your tax return early when you expect a refund? |
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Definition
You will get your refund sooner
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Term
| What should you do if you discover an error after you have filed your tax return? |
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Definition
| Notify the IRS of the mistake |
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