Types of Taxes
Type of tax paid to the federal government (and usually state govt too) on all the money you made in a year.
Income Tax
A tax where I pay the money straight to the government.
Direct Tax
Type of tax system in which the tax rate increases as the taxable amount increases
Progressive Tax System
Form that you fill out when you first get a job that will tell your employer how much money to withhold from your paycheck for Federal income tax.
W-4 Form
A non-profit financial institution set up by its members for their benefit. Can open accounts and get loans here.
Credit Union
Type of tax you pay anytime you buy an item from a store.
Sales Tax
A tax like where I pay money/tax to a business, who then pays the tax to the government.
Indirect Tax
Type of tax system in which the tax rate decreases as the amount subject to tax increases. This places a higher tax burden on lower income individuals.
Regressive Tax System
Tax form sent to you by your employer telling you your gross income and taxes you paid through your paycheck throughout the year. Used to file your taxes.
W-2 Form
Your total pay before any taxes come out.
Gross pay/income
Tax paid on something you own like land, a house, or a car
Property Tax
Income, Property Tax, and Capital Gains tax are all examples of....
Direct Taxes
The US federal income tax operates under which type of tax system?
Progressive Tax System
Tax form that you actually fill out and send to the IRS to determine either your tax refund, or how much you owe in additional income tax.
1040 Form
Type of expense that changes in value from month to month. (Electric bill, water bill)
Variable Expense
Tax Paid on money you inherit from someone who died (Has to be at least $13.6 million to pay tax)
Estate Tax
Sales Tax and Excise Taxes are both examples of....
Indirect Taxes
Regressive
If I paid too much in income tax throughout the year what do I get back from the IRS after I file my taxes.
Tax Refund
Installment Loan
Tax paid on items that the government sees as not good for the public, like cigarettes or alcohol.
Excise (Sin) Tax
Type of tax paid on the profit of the sale of a stock or bond.
Capital Gains Tax
Certain entities, such as non-profit organizations, religious institutions, and some businesses are tax _____________. Meaning they pay little to no Federal Income Tax.
Exempt
Name for an amount you can take off of your taxable income in order to lower the total amount of taxes you owe.
Deduction
Type of bank account that is a time based savings account that earns interest for account holder. Can not take money out of account until term is reached. If money taken out early a penalty fee is assessed.
Certificate of Deposit (CD)