| A | B |
|---|
| Indirect Tax | A tax that can be shifted to others |
| Interest | A type of unearned income |
| FICA | Legislative foundation of Social Security |
| Withholding | Money retained from a paycheck |
| Deduction | You can subtract it before determining taxable income |
| Proportional Tax | Tax taking the same percentage of income from all income groups |
| Sin Tax | Taxes on such things as alcohol and cigarettes |
| Regressive | A tax taking a larger percentage from low- income groups |
| Social Security | Mandatory retirement fund |
| Progressive Tax | A tax taking a larger percentage from high income groups |
| Pay-as-you-go | Withholding is based on this system |
| Ability to pay | One criteria that makes tax fair |
| Dependent | Someone whom you support |
| Exemption | Income on which tax is not paid |
| Sales Tax | Percentage of the retail price imposed as a tax |
| 1099-INT | Interest income is reported on this form |
| Schedule 1 | Interest over $400 should be reported on this form |
