Types of taxes
Tax
A payment imposed by a governmental unit
IRS Stands for?
Internal Revenue Service
if you earn $40,000 and pay $4,000 in tax, what percent is that?
10 percent
Overtime
Time worked beyond your regular scheduled hours.
what is a flat tax where everyone pays the same rate called?
Proportional Tax
Proportional tax
A range of income associated with a tax rate
What is the IRS responsible for?
Collecting taxes and enforcing tax laws.
Why do high earners fall into higher tax brackets?
Because the US uses a progressive tax System
what is a financial plan
A set of goals for spending, saving and investing the money you receive.
What do we call income paid to the government?
Revenue
regressive tax
A tax that takes a smaller share of income as income grows
what is the purpose of a IRS Audit?
To verify the accuracy of a taxpayers return and ensure that income and deductions are reported correctly
Name one legal way to reduce your taxable income.
Using deductions or credits such as education or donations
What does a W-2 Show?
How much you earned ad how much tax was withheld.
What is the willful failure to pay your taxes called?
Tax evasion
Property tax
Taxes paid on a property land/ buildings.
Where does the IRS have Head quaters?
Washington DC
Why do need Taxes?
To fund public programs and services such as schools, roads, etc.
Fixed Expenses
Costs that do not change from month to month.
what is an examination of your tax return by the IRS called?
Audit
Sales Tax
Tax paid on purchases
how can you have your refund direct deposited into your account?
On the IRS website you can electronically fill your tax return.
what is one example of proportional tax in the U.S?
State flat income tax or property tax
What is Gross pay?
Total Earnings before deductions are subtracted.
What do we call a range of income that is taxed at a specific rate?
Tax Bracket