| A | B |
|---|
| adjusted gross income | income minus allowable exclusions (such as iras and alimony) |
| alimony | money paid to support a former spouse |
| audit | When irs or state departnment ask question about tax records |
| child support | money paid to a former spouse for support of dependent children. |
| deductions | expenses the law allows the taxpayer to subtract from adjusted gross income |
| exemption | allowance a taxpayer claims for each person dependent on the taxpayers income. |
| gross income | all the taxable income you receive including wages tips salaries interest dividents unemployment compensation alimony workers compensation benefits and so forth. |
| itemized deductions | taxpayers are allowed to list certain expenses. |
| progressive taxes | increase in proportion to income |
| proportional taxes | flat taxes are those for which the rate remains constant even though the amount being taxed increases. |
| regressive taxes | that decrease in proportion to income. |
| revenue | money collected by the government from citizens and companies in the form of taxes. |
| standard deduction | usual deduction for your gross pay |
| taxable income | adjusted gross income minus deductions exemptions |
| tax evasion | Willful failure to pay taxes. |
| voluntary compliance | means that all citizens are expected to prepare and file income tax returns. |
