Upgrade to remove ads
Only $35.99/year

Personal Finacne Chapter 7

Terms in this set (17)

money collected by the government from various sources is known as ____.
revenue
a tax that increases in proportion to increas in income is known as a _____tax.
progressive tax
money earned by individuals that is subject to taxation is called _______ income.
taxable
in order to avioid itemizing decutoins, a person may elect to take the ______, which is a flat amount.
standard deduction
money paid to a former spouse (which is taxable income) for that person's support is called ______.
alimony
money paid to a former sopuse (which is not taxable income) for the support of dependent children is called ______.
child support
expenses that can be subtracted from gross income are called ______.
deductions
the amount remaining when adjustments are subtracted from gross income is called _____.
adjusted gross income
when all sources of taxable income are added together, the total is called ______income
gross
an amount that can be subtracted from your income for each person who depends on your income to live is an _____
exemption
an ______ tax allows a higher0 income person to pay a lower percentage of income in taxes than a lower- income person.
regressive taxes
to intentionally fail to pay taxes owed is to commit a serious crime called ______.
taxevasion
a tax system that is based on ______ requires all citizens to be responsible for preparing and filing their tax returns on time and paying taxes due.
voluntary compliance
a type of tax for which the rate stays the same regarless of income is called ______.
tax/ flat tax
a ______ is an amount subtracted directly from tax owed.
tax credit
an administrative agency of the federal government that collects taxes and enforces tax laws is the ____
IRS
an examination of tax returns by the IRS is called an _____.
audit
Recommended textbook explanations

Principles of Economics

8th EditionN. Gregory Mankiw
820 explanations

Krugman's Economics for AP*

2nd EditionDavid Anderson, Margaret Ray
1,042 explanations

Principles of Microeconomics

2nd EditionTimothy Taylor
713 explanations

Understanding Economics

1st EditionGary E. Clayton
765 explanations