Personal Finance Chapter 7, Federal Income Tax
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17 terms
Terms | Definitions |
|---|---|
 Revenue | Money. |
| Progressive Taxes | Taxes that take a larger share of income as the amount of income grows. |
| Regressive Taxes | Taxes that take a smaller share of income as the amount of income grows. |
| Proportional Taxes | Flat taxes, which the rate stays the same, regardless of income. |
| Tax Brackets | Tax ranges. |
| Tax Evasion | Willful failure to pay taxes. |
| Audit | An examination of a taxpayers return. |
| Exemption | The amount you may subtract from your income for each person who depends on your income to live. |
| Gross Income | Is all the taxable income you recieve. |
| Child Support | Money paid to a former spouse for support of dependent children. |
| Alimony | Money paid to support a former spouse. |
| Adjusted Gross Income | What you get after adjustments are subtracted from your gross income. |
| Deductions | Expenses the law allows you to subtract from your adjusted gross income to determine your taxable income. |
| Itemize | To list expenses on your tax return. |
| Standard Deduction | The stated amount that you may subtract from adjusted gross income. |
| Taxable Income | The amount on which you will pay tax. |
| Tax Credit | An amount subtracted directly from the tax owed. |
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