Personal Finance- Chapter 7
the amount remaining when adjustments are subtracted from gross income
adjusted gross income
expenses that can be subtracted from gross income are called
adjustments
money paid to a former spouse for that persons support is
alimony
tax returns must be filled by
april 15th
an examination of taxes by the IRS is called
audit
money paid to a former spouse to help pay for a child
child support
an alternative to itemizing deductions, tax payers may__________
claim the standard deduction
the power to levy taxes rests with the ____
congress
for people who use form 1040EZ the IRS allows
electronic filing of tax returns and an electronic payment of taxes due
a sales tax on specific products and services is the __ tax
excise
an amount can be subtracted from your income for each person who depends on your income to live is an
exemption
when all sources of taxable income are added together the total is
gross income
do you have to be married to be Head of Household
no
a type of audit requiring a taxpayer to appear in person and bring records is
office
income tax is an example of a ____ tax
progressive
a tax that increases in proportion to increases in income is known as
progressive tax
forms of flat tax
property tax sales tax
a type of tax for which the rate stays the same regardless of income
proportional tax
allows a higher-income person to pay a lower percentage of income in taxes than a lower-income person
regressive tax
a taxpayers filing status is ___ to his or her marital status
related
money collected by the government from various sources
revenue
in order to avoid itemizing deductions, a person may elect to take this
standard deduction
amount subtracted directly from tax owed
tax credit
to intentionally fail to pay taxes
tax evasion
money received in the form of salaries is __ income
taxable
alimony is ___ to the person receiving it and ___ to the one paying it
taxable deductible
money earned by individuals that is subject to taxation is called
taxable income
to compute your tax liability, turn to the tax tables and look up the amount called
taxable income
requires all citizens to be responsible for doing their taxes
volountary compliance
are unemployment compensation benefits taxable?
yes
administrative agency that collects taxes
Internal Revenue Service
the IRS is an agency of the _____ department
Treasury
how much is the maximum income that you can use a 140EZ
10,000
