Chapter 9 Flashcard

Front

What are taxes?

Back

A law stating how much of your earned income or profits the government takes to contribute to society

Front

A reduction of your taxable income

Back

Tax deduction

Front

The amount of money you 'make' before taxes and deductions

Back

Gross Income

Front

Surtaxes are....

Back

Additional taxes paid by higher earners for certain programs

Front

What is tax avoidance?

Back

Building a plan to U.S.E taxes and reduce your tax liability

Front

Tax ___________ are the groups that determine what fraction of your income you pay in taxes based off of which group your income falls into. (lowercase)

Back

brackets

Front

What is the highest percent that can be taxed off of someone's income?

Back

37%

Front

What is the difference between a tax credit and a tax deduction?

Back

A tax credit is applied to the tax money you owe, while a tax deduction is applied to your total taxable income.

Front

Which tax document is sent to an employee at the end of the year which summarizes what they were paid during the year?

Back

W2

Front

What do taxes do for society?

Back

Fund schools, Fund public services, Fund Medicare, Medicaid, and Social Security.