personal finance ch. 10
audit
The IRS make conduct an __________ of a persons tax return to check the accuracy of the figures
*Standard deduction
The dollar amount people can subtract from their income before the tax is calculated
tax bracket
The income ranges in which tax rates apply
minimum wage
The smallest amount that employers can legally pay their employees per hour of work
sales tax
The taxes you pay for snacks and other items at a gas station or an example of
National debt
The total amount the U.S. owes to other countries and companies is called what
tax liability
The total tax a person or business has to pay
Standard deduction
due to recent tax reforms, most tax filers can just take the_________ _________ when filing their taxes
tax return
each year, taxpayers submit a(n) ___________ _____________ to the IRS with the goal of getting as close to zero as possible
is money you make from working at your job
earned income
wage
money paid by the hour and for an agreed number of hours per week; especially for unskilled or manual labor
deficit spending
planning to spend more money than you actually have coming in is called
property tax
taxes paid by anyone who owns properties such as land, a home, or commercial real estate
excise tax
taxes you pay on the fuel you purchase for your car at a gas station
income tax
text Paid out by anyone who earns an income
FICA
what federal payroll tax goes towards Social Security and Medicare?
Gross income
what is your total pay before taxes and withholdings are taken out
25 to 30%
what percentage of their income should a self-employed person set aside for taxes?
form W-4
which form is used to calculate how much income tax withheld from your pay
Capital gains tax
A text on the positive difference between the sale price and the value of a gift when it was inheritated
estate tax
A text that's imposed on a property owners right to transfer the property to others after his or her death
salary
A fixed annual amount earned by an employee, typically paid weekly, biweekly, or monthly
Itemized deductions
A list of all eligible expenses that can be claimed to decrease taxable income
tax return
A report that a taxpayer has to submit annually to the government and is used to determine a persons tax liability
paper asset
A representation on paper of stocks, bonds, currencies, mutual funds, etc.
tax schedule
A special tax form to report certain types of income or deductions
inheritance tax
A state tax on an asset in individual received from someone who has passed away
wealth tax
A tax based on the market value of owned assets
gift tax
A tax on any asset that exceeds the yearly amount you can transfer to another person without compensation of equal value
consumption tax
A text and the purchase of goods or services in the form of sales tax, excise tax, and other special taxes
tax day
April 15 of every year the usual deadline to file taxes is also called what?
luxury tax
another word for excise tax
Earned income
any income (wage/salary) that is generated by the work someone performs
The 12 month period used for reporting financial activity is known as a(n)
fiscal year
inheritance tax
if a long loss relative or friend were to leave you a lot of money you might have to pay an
tax credit
in amount of money a taxpayer can subtract from the taxes they owe
portfolio income
is money you make from your investments
passive income
money earned on a regular basis with little or no effort required to maintain it
