taxes

Question 1

Gross Income?

Answer 1

The amount you earn before taxes and other payroll deductions

Question 2

Net Income?

Answer 2

What a person earns after payroll taxes and other deductions are taken out,
(take home pay)

Question 3

Withholdings?

Answer 3

the portion of an employees pay held back to cover taxes and other deductions

Question 4

Fiscal Year

Answer 4

a one year period that governments or companies use for financial reporting

Question 5

Deficit Spending

Answer 5

spending more than you earn; an economic policy in which the government spends public funds raised by borrowing rather than by taxation.

Question 6

National Debt

Answer 6

the total amount of debt a country owes to companies and other countries as a result of deficit spending

Question 7

earned income

Answer 7

any income (wages/salary) that is generated by the work someone performs

Question 8

wage

Answer 8

money paid by the hour and for an agreed number of hours per week; especially for unskilled or manual labor

Question 9

minimum wage

Answer 9

the smallest amount that employers can legally pay their employees per hour of work

Question 10

salary

Answer 10

a fixed amount earned by an employee, typically paid weekly, biweekly, or monthly

Question 11

passive income

Answer 11

money earned on a regular basis with little or no effort required to do it. (renting out property, content creator, or owning a business where you have no active role)

Question 12

portfolio income

Answer 12

income from an investment sold at a higher price than you paid for it(buying and selling stocks, bonds, mutual funds, real estate, paper assets)

Question 13

paper asset

Answer 13

a representation on paper of stocks, bonds, currencies, mutual funds etc.

Question 14

income tax

Answer 14

tax paid out by anyone who earns an income

Question 15

tax bracket

Answer 15

the income ranges in which tax rates apply

Question 16

tax liability

Answer 16

a total tax a person or business has to pay

Question 17

tax return

Answer 17

a report that a tax payer has to submit annually to the gov and is used to determine a persons tax liability

Question 18

standard deduction

Answer 18

the dollar amount people can subtract from their income before the tax is calculated

Question 19

itemized deductions

Answer 19

a list of all eligible expenses that can be claimed to decrease taxable income

Question 20

tax credit

Answer 20

an amount of money a taxpayer can subtract from the taxes they owe

Question 21

audit

Answer 21

an official IRS inspection of a tax return to make sure the income and deductions are accurate

Question 22

wealth tax

Answer 22

a tax based on the market value of owned assets

Question 23

property tax

Answer 23

taxes paid by anyone who owns property, such as land, a home, or commercial estate

Question 24

capital gains tax

Answer 24

a tax on the difference between the sale price and the value of a gift when it was inherited

Question 25

inheritance tax

Answer 25

a state tax on an individual received from someone who has passed away

Question 26

estate tax

Answer 26

a tax that's imposed on a property owner's right to transfer the property to others after their death

Question 27

gift tax

Answer 27

a tax on any asset that exceeds the yearly amount you can transfer to another person without compensation of equal value

Question 28

consumption tax

Answer 28

a tax on the purchase of goods and services in the form of sales tax, excise tax, and other special taxes

Question 29

sales tax

Answer 29

a tax on goods and services that goes to a state or local government

Question 30

excise tax

Answer 30

a tax on certain goods that aren't typically considered a necessity; sometimes called a luxury tax