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