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Flashcards in Taxes Deck (11):
1

Tax Rate Applied to a taxpayer's last dollar of income

Marginal Tax Rate

2

What provides for a dollar for dollar reduction in Taxes?

Credits

3

Specific Expenses that can be subtracted from AGI to reduce taxable income

Itemized Deductions

4

Tax-credit that reduce one's final tax liability below $0 resulting in a payment from the government is?

Refundable Tax Credit

5

Type of reduction taken to arrive at taxable income that cannot be taken by a taxpayer if he/she itemizes deductions

Standard Deduction

6

A client is having hard time meeting expenses each month. Which tax management strategy could be helpful?

Increase Tax Withholdings Allowances

7

In the 25% tax bracket. Can claim a tax credit of $200. How much will you save in taxes?

$200

8

Term for directly transferring funds by electronic means from a consumer's account to another

Electronic Funds Transfer

9

Interest-bearing savings instrument that requires people to deposit money for a fixed amount of time.

Certificate of Deposit

10

Disclosed standardized rate of interest paid on accounts at depository institutions

Annual Percentage Yield

11

Define Tax-sheltered income

Income that is exempt from taxes in the current year but that will be subject to taxation in a later tax year. Tax sheltered returns on savings/investments provide much greater returns because more money is available to be invested.