Income Taxes
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Created by:
DebWilson58 on February 19, 2009
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26 terms
Terms | Definitions |
|---|---|
 excise tax | tax on specific goods (ex: gas, tobacco) |
| personal income tax | tax on employee earnings (govt's main source of revenue) |
| medical or dental expense | can deduct only 7.5% over AGI |
| dependent | someone you claim if you pay more than 1/2 of their support |
| federal income tax | depends on marital status and number of allowances |
| self-employed | must make payments to the IRS on specific dates throughout the year |
| financial penalties | issued if you don't file on time |
| April 15 | deadline for filing your income tax return |
| estate tax | tax issued on a deceased person's property |
| Form 1040 EZ | simplest tax form to complete |
| tax audit | detailed examination of your tax return |
| personal property tax | ex: real estate, cars, boats, trailers |
| gift tax | tax collected on money or property valued over $11,000 |
| earned income | income received from working |
| unearned income | income received by investments or savings |
| exclusion | tax exempt money - not included in your gross income (ex. munical bonds) |
| tax-deferred | (ex: IRA deposits) money not taxed until a later date |
| charitable contributions | deductible donations not to exceed 20% of income |
| tax credit | amount subtracted from tax owed |
| Form 1040 | used when taking itemized deductions (ex: medical expenses) |
| taxable income | amount of money (earnings) on which income tax is computed |
| inheritance tax | tax on property left by someone's will |
| tax liability | total amount of tax a person owes |
| withhold | to take tax out of an employee's paycheck |
| AGI | adjusted gross income - amount of income AFTER certain reductions |
| income tax return | determines whether a person has paid too much or too little in income taxes during the year |
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