Ch. 3 Vocabulary

Multiple Choice

form that summarizes an employee's earnings and the amounts withheld from the employee's paychecks for the year

• federal income tax return

• W-2 form

• adjusted gross income

• IRA

• tax deductible

Multiple Choice

retirement account that allows individuals to save money for retirement

• federal income tax return

• W-2 Form

• adjusted gross income

• IRA

• tax deductible

Multiple Choice

expense that qualifies as a deduction from adjusted gross income

• federal income tax return

• W-2 Form

• adjusted gross income

• IRA

• tax deductible

Multiple Choice

form used to file income tax with the IRS that is due April 15

• federal income tax return

• W-2 Form

• adjusted gross income

• IRA

• tax deductible

Multiple Choice

gross income minus selected government approved deductions

• federal income tax return

• W-2 Form

• adjusted gross income

• IRA

• tax deductible

Multiple Choice

fixed amount that can be claimed instead of listing individual deductions

• standard deduction

• tax credit

• asset

• investment

• capital gain

Multiple Choice

anything owned that is of value

• standard deduction

• tax credit

• asset

• investment

• capital gain

Multiple Choice

any purchase made in hopes of making money

• standard deduction

• tax credit

• asset

• investment

• capital gain

Multiple Choice

an amount of money that a taxpayer is allowed to subtract from the taxes that are owed

• standard deduction

• tax credit

• asset

• investment

• capital gain

Multiple Choice

profit that results from selling something for more than the buyer paid

• standard deduction

• tax credit

• asset

• investment

• capital gain

Multiple Choice

FICA taxes that must be paid by a self employed person

• capital loss

• self employed

• self employment tax

• gift tax

Multiple Choice

recipient of an inheritance

• estate

• estate tax

• heir

• inheritance

• inheritance tax

Multiple Choice

tax imposed by some states on a person receiving an inheritance

• estate

• estate tax

• heir

• inheritance

• inheritance tax

Multiple Choice

tax that is paid out of the value of the estate before it is passed to the heirs

• estate

• estate tax

• heir

• inheritance

• inheritance tax

Multiple Choice

all of a person's possessions, including assets and debts

• estate

• estate tax

• heir

• inheritance

• inheritance tax

Multiple Choice

individual's portion of an estate

• estate

• estate tax

• heir

• inheritance

• inheritance tax

Multiple Choice

someone who creates his/her own job and works for him/herself

• capital loss

• self employed

• self employment tax

• gift tax

Multiple Choice

law that limits the amount of money that can be given away as a gift

• capital loss

• self employed

• self employment tax

• gift tax

Multiple Choice

amount lost when a capital asset is sold for less than a buyer paid

• capital loss

• self employed

• self employment tax

• gift tax