| A | B |
|---|
| ability to pay | concept of tax fairness |
| adjusted gross income | total income reduced by certain amounts |
| credits | direct reduction of tax owed |
| dependent | a person who relies on someone else for support |
| dividends | distributions from corporations |
| earned income | wages, salaries, tips |
| e-file | automated method of tax filing |
| exempt (from withholding) | free from withholding of federal income tax |
| gross income | money, goods, property received that must be reported |
| interest income | income received from financial accounts such as savings accounts |
| standard deduction | amount based on filing status that taxpayers may deduct from their adjust gross income |
| tax withholding | money that employers hold back from your paycheck for taxes |
| taxable income | income on which tax is figured |
| unearned income | income other than pay for work performed |
| withholding allowance | claimed by an employee on Form W-4 |
