CHPT 10 review

What percentage of their income should a self-employed person set aside for taxes?

25-30%

Which form is used to calculate how much income tax is withheld from your pay?

Form W-4

April 15 of every year—the usual deadline to file your taxes—is also called what

Tax day

Planning to spend more money than you actually have coming in is called

deficit spending

is money you make from your investments.

portfolio income

The taxes you pay for snacks and other items at a gas station are an example of

sales tax

Due to the 2018 tax reforms, most tax filers can just take the when filing their taxes

standard deduction

Each year, taxpayers submit a(n) to the IRS with the goal of getting as close to zero as possible.

tax return

is money you make from working at your job

Earned income

What federal payroll tax goes toward Social Security and Medicare?

FICA

_________ is your total pay before taxes and withholdings are taken out

Gross income

What types of taxes and deductions are factored into the difference between your gross pay and your net pay?

Income tax & Social security tax

The total amount the U.S. owes to other countries and companies is called what?

National debt

The IRS may conduct a(n) of a person's tax return to check the accuracy of the figures.

audit

An example of a(n) is the taxes you pay on the fuel you purchase for your car at a gas station.

excise tax

The 12-month period used for reporting financial activity is known as a(n)

fiscal year

If a long-lost relative or friend were to leave you a lot of money, you might have to pay a(n)

inheritance tax