| A | B |
|---|
| Alimony | Money that is paid to a former spouse for living expenses. |
| Gross Income | The total amount of money that is taxed, which includes wages, salaries, tips, etc. |
| Taxable Income | The amount of income that the government taxes. |
| Itemize | Listing your deductions. |
| Proportional Tax | Also known as Flat Tax....which doesn't increase or decrease with your income. |
| Excise Tax | Taxes specific goods. |
| Tax Evasion | When you willfully fail to pay to taxes. |
| Voluntary Compliance | This is what our tax system is based upon, which means you are 'expected' to pay your taxes on your own. |
| Congress | The power to tax is decided by this group of people. |
| IRS | Department of Treasury that enforces tax laws and collects income taxes. |
| April 15th | When taxes MUST be filed by this date unless you filed an extension though the government. |
| 6 | The number of tax brackets that people fall under when determining how much they owe. |
| Tax Credit | College Tuition is an example of this. |
| Exemption | An allowance or credit that's given to a taxpayer. |
| Deductions | Expenses that are subtracted to help keep a business "running". |
| Regressive | A type of tax that gets smaller with the more you make....a person that makes more pays less than the person that makes less. |
| Progressive | A type of tax that increases as you gross income increases. |
