Match the terms with the definitions.

a. adjusted gross income

b. dependent

c. exemption

d. filing status

e. gross income

f. itemized deductions

g. standard deduction

h. tax credit

i. taxable income

__ Your tax-filing group based on your marital status

Match the terms with the definitions.

a. audit

b. progressive taxes

c. proportional taxes

d. regressive taxes

e. revenue

f. tax brackets

g. tax evasion

h. voluntary compliance

__ Willful failure to pay taxes

Match the terms with the definitions.

a. adjusted gross income

b. dependent

c. exemption

d. filing status

e. gross income

f. itemized deductions

g. standard deduction

h. tax credit

i. taxable income

__ A stated amount you can subtract from adjusted gross income if you do not itemize deductions

Match the terms with the definitions.

a. audit

b. progressive taxes

c. proportional taxes

d. regressive taxes

e. revenue

f. tax brackets

g. tax evasion

h. voluntary compliance

__ Taxes that take a smaller share of income as the amount of income grows

Why are regressive taxes considered unfair to lower-income people?

Match the terms with the definitions.

a. adjusted gross income

b. dependent

c. exemption

d. filing status

e. gross income

f. itemized deductions

g. standard deduction

h. tax credit

i. taxable income

__ Expenses listed on Schedule A that you can subtract from adjusted gross income to determine taxable income

Voluntary compliance is an important part of our tax system. When everyone contributes their fair share, the country is able to meet its obligations to its citizens. Willful refusal to file a tax return or pay taxes is a federal crime. However, many people called tax protestors believe that the U.S. Constitution does not require them to pay federal income taxes and that payment of the tax is voluntary. Look up "tax protestors" in Wikipedia online. Write a paper about tax resisters and those who refuse to pay taxes. Is their argument rational? On what is it based? What would happen if all people took the same approach and refused to pay federal and/or state income taxes? Do you believe the claims that more than 40 percent of all Americans pay no federal income tax? What is the attitude of the U.S. government toward these protestors? What is your position on this issue?

Calculate the total tax for Yi Chang, a part-time teacher. Yi's wages total $12,201. He received$190 of taxable interest income, made an IRA contribution of $500, claims the standard deduction, and had$520 in federal taxes withheld from his wages. He is married filing separately and claims only himself as an exemption. How much does Yi owe in taxes, or how much is his refund?

Explain how conformity can be good and bad for society.

How can conformity be a good thing?

Making simple mathematical errors on your tax form could result in your tax return being targeted for an audit. Use of tax preparation software helps prevent this type of error. Do you think hiring a professional tax preparer would reduce the chances of being audited? Why or why not?

Calculate the total tax for Mack R. Rueoff, a part-time auto mechanic. Mack's gross income is $13,255. He has a$1,000 IRA deduction, claims the standard deduction, and had $350 in federal taxes withheld. He is single and is entitled to one exemption. Based on this information, how much does Mack owe or how much is his refund?

Acquire a copy of Form 1040EZ. Prepare a tax return for Tomeka Hunt. Use the tax table in Figure 7.3 and the following information:

Tomeka M. Hunt (Social Security number 999-00-9892)

54 Center Street

San Francisco, CA 96214-3627

Tomeka is a part-time engineer. She wants $3 to go to the Presidential Election Campaign Fund. She is single and claims only herself as an exemption. Tameka's salary is$16,200, plus interest of $155. No one else claims her as a dependent, and she had$1,660 in federal taxes withheld. Acquire a copy of Form 1040EZ. Prepare a tax return for Tomeka Hunt. Use the tax table in Figure 7.3 and the following information:

Tomeka M. Hunt (Social Security number 999-00-9892)

54 Center Street

San Francisco, CA 96214-3627

Tomeka is a part-time engineer. She wants $3 to go to the Presidential Election Campaign Fund. She is single and claims only herself as an exemption. Tameka's salary is$16,200, plus interest of $155. No one else claims her as a dependent, and she had$1,660 in federal taxes withheld.

Is it a good idea to prepare your taxes twice-once using Form 1040 and then again using one of the other tax return forms-so that you can compare the results? Explain your answer.