A person who pays taxes on the money they earn is paying this type of tax.
What is income tax?
100
A legal way to lower your taxes is called this.
What is tax avoidance?
100
One reason that it's important that tips are recorded as income is because....
What is because under voluntary compliance it is the taxpayer's responsibility?
100
George and Mary have been married for 3 years. They claimed a childcare credit and claimed a deduction for interest paid on their mortgage. They are participating in what?
What is tax avoidance?
200
The money the government collects from taxes is called this.
What is revenue?
200
Under the law, tax payers have these 4 responsibilities.
What is file a return, obtain forms and instructions, provide complete and accurate information, and file on time?
200
These are two ways people can lower their taxes LEGALLY.
What are deductions and credits?
200
Other reasons tips should be reported are....
What is to avoid penalties, federal services suffer when people don't pay their fair share and honest taxpayers have to pay more?
200
Name the three major reasons why it's important to report tips on your income tax return.
What is voluntary compliance, paying fair share, and avoiding penalties?
300
After this significant event in American history, Congress was granted the power to tax and collect taxes.
What is the American Revolution?
300
The United States tax system is built on the idea of this.
What is voluntary compliance?
300
People who do not pay taxes are participating in this.
What is tax evasion?
300
Tips relate to voluntary compliance because....
What is because it is the taxpayers responsibility to report ALL income under voluntary compliance?
300
All the money received by the government from taxes is called this.
What is revenue?
400
These are three PURCHASES the government makes with money received from taxes.
What are medical research, roads and highways, aircraft carriers (national defense), schools and libraries?
400
This type of economy is one that is based on money making activities that people DO NOT report to the government.
What is an underground economy?
400
Bob works as a waiter and makes $200 per week on average in tips. He does not record this income on his tax return. He is participating in this.
What is tax evasion?
400
The government expects me to pay taxes on tips because....
What is because under voluntary compliance you are agreeing to report ALL income including tips or money made under the table.
400
This is the date by which all tax returns must be filed.
What is April 15th.
500
These types of payments include social security, medicaid, and welfare programs.
What are transfer payments?
500
Name two examples of an underground economy; one legal, and one illegal.
What are getting paid in tips (money/cash earned from yard-work/babysitting), and gambling (drug-dealing)?
500
The major difference between tax evasion and tax avoidance is this.
What is tax evasion is ILLEGAL and may be subject to penalty. Tax avoidance is LEGAL and a means to lower your tax bill.
500
If your employer does not require you to report your tips earned what should you do.
What is maintain accurate records of ALL income including tips and under the table wages to keep yourself safe from IRS audit?