Unit 4- Taxes

Question 1

Adjusted gross income

Answer 1

After all of the adjustments are subtracted from gross income

Question 2

Audit

Answer 2

Examination of your tax returns by the IRS

Question 3

Dependent

Answer 3

Someone who depends on a taxpayer-usually a child

Question 4

Exemption

Answer 4

A type of deduction for yourself or a dependent

Question 5

Gross income

Answer 5

All the taxable income you receive, including wages, salaries and tips. No deductions taken

Question 6

IRS

Answer 6

An agency in the department of treasury and an agency that provides services to taxpayers

Question 7

Progressive tax

Answer 7

Taxes that take a larger amount of income as the amount of income grows

Question 8

Proportional tax

Answer 8

Flat taxes, are the same rate regardless the income

Question 9

Regressive tax

Answer 9

Taxes that take a smaller share of income as the amount of income grows

Question 10

Standard deduction

Answer 10

A set dollar amount that you don’t have to pay taxes on if you choose not to itemize

Question 11

Tax credit

Answer 11

Amount subtracted directly from the tax owed

Question 12

Taxable income

Answer 12

Adjusted gross income minus any deductions or exemptions

Question 13

Tax evasion

Answer 13

Willful failure to pay taxes

Question 14

Child support received, taxable or non taxable?

Answer 14

Non taxable

Question 15

Most IRA or 401k contributions, taxable or non taxable?

Answer 15

Non taxable