Chapter 7 - Federal Income Tax

Created by phbhenry 

Upgrade to
remove ads

adjusted gross income

Gross income minus allowed adjustments.

alimony

Money paid to support a former spouse.

audit

A procedure whereby a tax return is questioned by the IRS.

child support

Money paid to a former spouse to support dependent children.

deductions

Expenses allowed by law that are subtracted from adjusted gross income.

exemption

An allowance for each person dependent on the taxpayer's income.

gross income

All the taxable income received during the year, including wages, tips, salaries, interest, dividends, alimony, and unemployment compensation.

itemized deductions

A listing of allowable deductions such as medical expenses, mortgage interest and tax payments, and contributions.

progressive taxes

A tax based on the more income earned, the more tax paid.

proportional taxes

A tax wherein the rate remains constant, regardless of the amount of your income.

regressive taxes

A tax that decreases in proportion to increases in income.

revenue

Money collected by the government through taxes.

standard deduction

A base amount allowed according to filing status in lieu of itemizing deductions.

taxable income

The net amount of income, after allowable exemptions and deductions, on which income tax is computed.

tax evasion

Willful failure to pay taxes.

voluntary compliance

A system whereby citizens are expected to prepare and file appropriate tax returns.

Please allow access to your computer’s microphone to use Voice Recording.

Having trouble? Click here for help.

We can’t access your microphone!

Click the icon above to update your browser permissions above and try again

Example:

Reload the page to try again!

Reload

Press Cmd-0 to reset your zoom

Press Ctrl-0 to reset your zoom

It looks like your browser might be zoomed in or out. Your browser needs to be zoomed to a normal size to record audio.

Please upgrade Flash or install Chrome
to use Voice Recording.

For more help, see our troubleshooting page.

Your microphone is muted

For help fixing this issue, see this FAQ.

Star this term

You can study starred terms together

NEW! Voice Recording

Create Set