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| A concept of tax fairness that people with different amount of wealth/income should pay taxes at different rates. |
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| Total income reduced by certain amounts: Payments to a traditional IRA or student loans |
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| A concept of tax fairness that peopel should pay taxes in proportion to the benefits they revieve from government goods/services |
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| Taxes given to government run corporations. Includes unemployment insurance, workmens compenssation, social security contributions and Medicare |
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| A direct reduction of tax owned. Allowed for child care expenses, higher education costs, qualifying children and earned income of low-income taxpayers |
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| A person who relies on someone else for support. The supporter can claim exemptions for the person. Cannot be themself or a spouse. |
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| A tax that cannot be shifted to others. For example, federal income tax. |
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| A corporations distributions to its shareholders from its earning and profits |
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| Wages, salaries, tips and net earnins from self employment and other income reveived for personal services |
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| A credit that can be paid to low income workers. Have to fill out a tax return |
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| The quickest and easiest way to file your taxes. Twice as fast as paper. And online |
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| Taxes on the sale or use of specific products or transactions |
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| Freedom from witholding of federal income tax. Does not free you from paying other taxes like social security |
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| Exemption(Personal or dependency) |
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Definition
| Amount that taxpayers can claim for themselves, their spouses and eligible dependents. |
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Definition
| Program sponsored by the IRS in partnership with participating states that allow the taxpayers to files federal and state income tax returns electrically |
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| When a taxpayer mails or transmits their information regarding income and tax liability in a specific format to the IRS. |
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| Tax bracket that a taxpayer is placed in. Based on marital status and other factors |
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| A.K.A (Employees withholding Allowance Certificate). A form for an employer that helps determine how much they should deduct from their paycheck regarding federal income tax |
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| Formal Tax Legislation Process |
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| The steps that a proposed tax law must pass through before it becomes law (Congress and the President) |
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Definition
| Money, goods and property you recieved that must generally be reported on a tax return. May be included in your taxable income too |
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| Concept that people in the same income group should be taxed at the same rate |
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| Taxes on income, both earned and unearned. Can be given to business and individuals |
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| A tax that can be shifted to others, such as a business property taxes |
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| Informal Tax Legislation Process |
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| Individuals and interest groups expressing and promoting their opinions about tax legislation |
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| Income a person revieves from certain financial accounts or from lending money to someone else |
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| Taxes collected from employers and employees to finance specific programs |
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| A tax based on the amount of taxable income that people receive anually. |
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| A tax that takes a larger percentage of income from high income groups than low income groups |
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| Taces on property, especially real estate. Can be applied to boats, automobiles and business inventories |
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| Proportional Tax (Flat Tax) |
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Definition
| A tax that takes the same percentage of income from all income groups |
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| Public Goods and Services |
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| Government provided things that we pay taxes for. National Defense, welfare, street lights, roads, trade regulation and education |
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| Redevelopment or Enterprise Zone |
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Definition
| A government designated area that is declared "in need of restoration and revitalization" |
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Definition
| A tax that takes a larger percentage of income from low income groups than high income groups |
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| Taxes on retail products, based on a set of percentage of retail costs |
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| A form on which taxpayers report details about an item summarized on the general return form? |
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| An amount provided by law that taxpayers can deduct from their adjusted gross income tax. Based on age, blindness, filing status and dependency |
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| Taxes on products imported from foreign countries. |
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| Amounts that can be deducted directly from taxes owed. |
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| A part of a persons or a business total expenditures that can be subtracted in determining taxable income |
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| A part of a person's total income on which no tax is imposed |
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| The amount of tax that must be paid. |
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| The process that occurs when a tax that has been imposed on one person or group is paid by others |
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| Money that an employer holds back from an employee's pay that is used to pay part or all of the employees taxes |
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| The income on which tax is figured |
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Definition
| Required payments of money to governments that are used to provide public goods and services for the benefit of the community as a whole |
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Definition
| Filing returns over a touch-tone phone. |
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Definition
| Taxes on economic transactions, such as the sale of goods and services. |
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Definition
| Income other than wages from work performed. (Interest and dividend from savings or investments) |
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Definition
| The concept that people in different groups should pay different rates of taxes. or different rates of their income as taxes |
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Definition
| A system of compliance that relies on individual citizens to report their income freely and voluntarily. |
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Definition
| Money that employers take away from employees paychecks. This money is withdrawn for certain government taxes. |
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Term
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Definition
| Claimed by an employee on Form W-4. An employer uses the number of allowance claimed with income earned and marital status to determine how much to withhold from wages. |
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