Tax Structure
This federal agency administers and enforces the U.S. tax code.
What is the "Internal Revenue Service?"
This type of income is generated by working and is taxed at a higher rate than other types.
What is earned income?
This IRS form is used to file an individual income tax return.
What is Form 1040?
In a progressive tax system, income is divided into these, each taxed at a different rate.
What are tax brackets?
The three levels of the U.S. tax system are federal, state, and this.
What is the local?
The date by which an individual needs to file their income tax return for the prior year.
What is "April 15?"
Form 1120 is used to file tax returns for this type of entity.
What is a corporation?
This type of tax benefit reduces your tax liability dollar for dollar.
What is a tax credit?
This tax rate structure charges higher-income earners a larger percentage of their income.
What is a progressive tax?
Rental income is an example of this income type, which receives the most favorable tax treatment.
What is passive income?
This filing status offers more favorable tax brackets and a higher standard deduction than single, but requires specific criteria about dependents.
What is Head of Household?
This rate represents the average tax paid across all income, as opposed to the rate on the last dollar earned.
What is an effective tax rate?
This payroll tax, split equally between employer and employee, funds Social Security and Medicare.
What is FICA?
One important tax document you will need to complete the filing of your Income Tax is your _____, which your employer must complete and send to you by January 31st.
What is a "W-2?"
Form 1065 is used for this type of business entity, while a single-member version uses SMLLC filing.
What is a partnership?
Investments held for more than one year qualify for this preferential tax rate, which is lower than ordinary income rates.
What is the long-term capital gains rate?