Vocabulary Set 1
percentage based fee charged by the government on products, income or activities
Taxes
collected from the owners of buildings, land and other taxable property; a set percentage of the estimated property value
Property Tax
amount of a person’s or company’s income prior to deductions
Gross Income
collected on the property left by an individual’s will
Inheritance Taxes
income which will be paid at a later date
Tax-Deferred Income
levied directly on personal or corporate income
Indirect Tax
expense an individual is allowed to subtract from gross income to arrive at taxable income
Tax Deductions
gross income after certain adjustments have been made
Adjusted Gross Income
collected on personal gifts valued at more than $10,000
Gift Taxes
general rise in the level of prices for goods and services over time
Inflation
paid based on taxable income
Income Tax
decrease the tax per unit of income
Tax Credits
date specified by the federal government on which all taxes and exemptions should be filed
Tax Day
usually taxed at a rate of 30 to 40 percent; includes the taxes collected on money or gifts received from winning game shows, competitions, etc.
Prize-Oriented Taxes
Which tax return form should a taxpayer use if he or she had a taxable income of $103,000 and will itemize deductions?
1040
divisions at which tax rates increase or decrease in a progressive tax system
Tax Brackets
portions of a person’s income which is not subject to tax
Tax Exemptions
effort of individuals, firms, trusts and other entities to evade the payment of taxes by breaking the law
Tax Fraud
interest received from the banks and savings institutions
Interest Income
What is a 1099 form?
A record of untaxed earnings
listed as a certain percentage of an item’s cost
Sales Tax
portion of income which is subject to being taxed
Taxable Income
was a pre-conditional tax required to vote in U.S. elections
Poll Tax
includes money or cash dividends received from investments, such as stocks
Dividend Income
A record of wage and salary earnings and taxes withheld
What is a W-2 form?