8.2 Personal Finance

exemption

A fixed amount deducted on your tax return for each person supported by your income, including yourself, is called an __________.

adjusted gross income

Subtracting certain allowable amounts from your gross income results in your ____________ . These allowable amounts, or non-taxed portions of income, are called adjustments.

tax credits

Sums of money that reduce federal income tax by the full dollar-for-dollar amount are called ___________.

FICA

Taxes used for Social Security and Medicare benefits are called __________ taxes.

net pay

The actual amount of your paycheck after taxes have been withheld is called your ___________.

false

True or False: FICA tax is not a percentage of your gross income.

false

True or False: Federal income tax is a percentage of your gross income.

true

True or False: If tax credits are equal, federal tax tables show that the greater your taxable income, the more you pay.

true

True or False: People in some states are not required to pay state income taxes.

gross income

Your ___________ is your total income for the year.

base pay

Your ____________, or gross pay, is your salary prior to any with held taxes.

deductions

Your taxable income is your adjusted gross income minus the sum of your exemptions and _______________.