| A | B |
|---|
| Income taxes | The largest source of government revenue in the United States. |
| Progressive | Income tax is an example of which type of tax? |
| Regressive | Sales tax is an example of which type of tax? |
| Increase | As taxable income increases, income tax rates do what? |
| Dependent | A person who lives with you and receives support. |
| April 15 | You must file your federal income tax return no later than what date? |
| Congress | According to the U.S. Constitution, the power to tax rests with whom? |
| Audit | An examination of tax returns by the IRS is called what? |
| Taxpayer, taxpayer's spouse, person who prepared the return | People who must sign a tax return. |
| Child Support | What is not considered taxable income on a tax return? |
| Earned Income | Income received as wages, tips or salaries |
| Unearned Income | Income from savings and investments |
| Gross Income | ALL taxable income received, including wages, tips, salaries, interest, dividends, unemployment compensation, alimony |
| Standard Deduction | Flat dollar amount qualified tax payers are allowed to subtract from adjusted gross income |
| Progressive Tax | Taxes that take a larger share of income as the amount of income increases |
| Regressive Tax | Taxes that take a smaller share of income as the amount of income INCREASES |
| W-4 | Form completed by the EMPLOYEE |
| W-2 | Summary of the employee's income and withholding |
| Taxable Income | To compute your tax liability, use tax tables to look this up |
| 1040EZ | Simplified Federal Income Tax Form |
| 1040A | Federal Tax Form that provides for itemized deductions |
| W-4 | Form used by employers to determine compute the amount of federal income to to withhold |
| Social Security Tax | Helps provide retirement income for the elderly and pays disability benefits. |
| Medicare Tax | Provides hospital and medical insurance to those who qualify. |
| Tax Evasion | To intentionally fail to pay taxes owed is to commit a felony |
| Alimony | Money paid to former spouse for the support of that person |
| Deductions | Medical costs and property taxes are examples of expenses allowed to be subtracted from gross income |
| Tax Credit | College tuition is an example of money that a taxpayer is able to subtract from the amount of tax that they owe to the government |
| Net Pay | Gross pay minus required and voluntary expenses |
| Voluntary Compliance | Requires all citizens to be responsible for preparing and filing their tax returns on time and paying taxes due |
| IRS | Agency within Dept. of Treasury responsible for collecting taxes and enforcing tax laws |
| Taxpayer Advocate Services | Independent of IRS, purpose is to protect taxpayer rights, to improve customer service, reduce taxpayer burden |
| Schedule 1 | Form listing interest and dividends, filed with Form 1040A |
