| A | B |
|---|
| progressive tax schedule | the means through which higher income is taxed at a higher rate |
| Pay-as-You-Earn | the payroll withholding feature of the income tax laws |
| tax liability | the amount of income tax you owe |
| tax tables | charts that indicate the income tax owed based on your taxable income |
| taxable income | gross income minus personal exemptions and the standard deduction or itemized deductions |
| tax rate schedules | formulas from which taxes are calculated on the basis of fixed amounts and percentages for given incomes |
| Form 1040A | basic form for calculating and filing individual or joint federal income tax |
| Form 1040EZ | simplified federal tax form for single individuals with no dependents |
| standard deduction | one of the amounts you are permitted to deduct from your income to determine your taxable income |
| adjusted gross income | total of income earned as well as income from interest and other sources minus IRA deductions |
| refund | an amount of money sent back to a taxpayer when the amount withheld is greater than the total payments due |
| tax preparation software | a computer program used to compute taxes |
