Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
26 Cards in this Set
- Front
- Back
Progressive Tax |
A tax system in which tax rates increase as income increases |
|
Personal Exemptions |
A IRS-allowed reduction in your income tax for yourself, your spouse and any dependents that is subtracted before you compute your taxes |
|
Total Income |
Another name for gross income |
|
Capital Assets |
Assets you own, including such items as stocks, bonds, or real estate |
|
Bracket Creep 2 |
Bubba was given a cost of living raise and merit raise at work. His federal income was paid at 25% instead of 15%. Bubba has experienced |
|
Personal or Dependency Exemptions |
Claiming yourself, your spouse and/or grandparents that you support |
|
Passive Income |
Comes from activities in which the taxpayer does NOT actively participate |
|
FICA |
Deductions from your paycheck are for which mandatory federal insurance programs such as Medicare and Medicaid |
|
Deductions |
Expenditure that are subtracted in an effort to calculate lowest possible taxable |
|
Deductions 2 |
Expenditure that are subtracted in an effort to calculate lowest possible taxable income
|
|
Capitol Loss |
Felix sold his stock in GSK corporation for a price less than he paid for |
|
Form 1040x |
If you made a mistake, an amended tax return may be filled out on this form |
|
Excise Taxes |
Imposed on items such as alcohol and cigarettes, sometimes called sin taxes, and are often aimed at reducing consumption of these items |
|
Tax-Deferred |
Income on which the payments of taxes is postponed until some further date |
|
Active Income |
Income that comes from wages or a business |
|
Tax Filers |
Individuals whose income meets federal guidelines must file a federal income tax return |
|
Tax Credit |
Offsets your tax liability in a direct dollar for dollar manner and may actually increase your tax refund beyond the amount paid during the tax year |
|
IRS Collection Mechanisms |
Paycheck with holding, quarterly estimated payments and payments submitted with tax returns |
|
Capital Gain Math |
Purchase price per share x share price = basis Sale price less basis = gain |
|
IRS Tax Audit |
Reasons include random selection, past audits or suspicious items on a return |
|
Child Tax Return |
Reduces the federal income tax you owe by up to $1,000 for each qualifying child under 17 |
|
Earned Income Credit |
Serves as a negative income tax and is available to low income tax payers |
|
April 15th |
The deadline to file your income tax return although an automatic extension may be filed |
|
Bracket Creep |
The movement into a higher tax bracket as a result of inflation increasing wages |
|
Marginal Tax Rate |
The percentage of the last dollar you earn that goes toward your taxes |
|
W-4 Adjustment |
Used to claim deductions and put an end to with holding |