Tax-exempt income (for example: municipal bond interest) that does not have to be included in gross income is called...
An exclusion
100
The amount of money that can be subtracted directly from taxes you owe is called...
A tax credit
100
Who must file income taxes?
Residents/citizens of the U.S. with income above the standard deduction for your filing status (ex. $10,000 for single). However, if you work at ALL, you should still fill to possibly receive credit for taxes paid.
100
This is a detailed examination of your filed tax return by the IRS.
An audit
200
A tax collected on the value of a person's property at the time of his/her death is called...(what type of tax is this?)
Estate Tax (tax on wealth)
200
Gross income AFTER calculating certain reductions (or adjustments) to income
Adjusted gross income
200
An adjustment to the tax withheld from your paycheck, based on marital status and whether you have dependents (use W-4 to fill in this information)
An allowance
200
Name four of the five filing status categories.
Single, Married - filing jointly, Married - filing separately, Head of household, and Qualifying widow/widower
200
You may file your taxes using any of these methods.
Paper filing, e-file to the IRS site, use a tax preparer (accountant or H&R Block), use an online service and submit (TurboTax)
300
This type of tax is similar to a sales tax, but is a tax on specific goods and services (gasoline, air travel) - what category is this?
Excise tax (purchase tax)
300
Your adjusted gross income less any allowable tax deductions and exemptions is called...
Taxable income
300
Name three of the four categories of the most common itemized deductions.
Medical and dental expenses, taxes, interest, contributions
300
The date all taxes are due each year (or an extension form)
April 15th (midnight). If this falls on a weekend, the Monday after the 15th is the new due date.
300
What is the flat rate charged for Social Security taxes?
6.2%
400
The tax on wages, salaries and self-employment earnings is called this
Income tax
400
An expense that you can subtract from your AGI to figure your taxable income (two...name them)
Standard deduction and itemized deduction (what can be included under itemized deductions)
400
Self-employed persons may make estimated tax payments to the government. What are the four dates those tax payments are due?
April 15th, June 15th, September 15th, and January 15th
400
Filing this form enables you to delay filing your tax return for four months, but does not delay your tax liability if you owe taxes.
An extension
400
What is the flat-rate charged for Medicare?
1.45%
500
The federal agency that collects taxes
The Internal Revenue Service (IRS)
500
A deduction from adjusted gross income for the taxpayer, spouse, and qualified dependents is called...
An exemption
500
The U.S. tax rate system is an example of what kind of tax (meaning you are taxed in steps)?
Progressive tax
500
Name three of the four items necessary to complete a tax return.
Tax forms/instruction booklets, copies of the previous years' tax returns, your W-2 form(s), interest and dividend forms (if applicable)
500
How many tax returns were e-filed for the 2013 tax year?