| A | B |
|---|
| Money collected by the government from various sources | revenue |
| A tax that increases in proportion to increases in income | progressive |
| Money earned by individuals that is subject to taxation | taxable |
| In order to avoid itemizing deductions, a person may elect to take the _____, which is a flat amount. | standard deduction |
| Money paid to a former spouse (which is taxable income) for that person’s support | alimony |
| Money paid to a former spouse (which is not taxable income) for the support of dependent children | child support |
| Expenses that can be subtracted from gross income | deductions |
| The amount remaining when adjustments are subtracted from gross income | adjusted gross income |
| When all sources of taxable income are added together, the total is called _____. | gross |
| An amount that can be subtracted from your income for each person who depends on your income to live is a(n) | exemption |
| A(n) _________ tax allows a higher-income person to pay a lower percentage of income in taxes than a lower-income person. | regressive |
| To intentionally fail to pay taxes owed is to commit a serious crime | tax evasion |
| A tax system that is based on _________ requires all citizens to be responsible for preparing and filing their tax returns on time and paying taxes due. | voluntary compliance |
| A type of tax for which the rate stays the same regardless of income | proportional |
| an amount subtracted directly from tax owed. | tax credit |
| An administrative agency of the federal government that collects taxes and enforces tax laws is the _________. | internal revenue service |
| An examination of tax returns by the IRS is called a(n) _________. | audit |
| To compute your tax liability, turn to the tax tables and look up the amount called _____. | taxable income |
| A form of flat tax | property tax |
| Tax returns must be filed by _________ of the following year. | April 15 |
| A sales tax on specific products and services is the _________ tax. | excise |
