Chapter 10 Tax Law

An allowance granted by way of a deduction when computing one’s taxable income is a(n)

• tax evasion

• earned income

• exemption

• back taxes

A(n) is a single income tax return filed by a husband and wife reporting their combined incomes.

• return in common

• head of household

• tax audit

• joint return

_______ refers to payments received before they are earned

• accrued income

• exemptions

• gains

• deferred income

The organization that administers and enforces the Internal Revenue Code upon individuals, corporations, or trusts, or their income or property.

• IRS

• WSO

• IRA

• ISIS

Withholding statement by employer of federal and state income taxes and FICA contribution deducted from pay

• paycheck

• W-2

• 1040

• direct deposit

Individual Retirement Account is a(n)

• IRS

• IRA

• tax deduction

• exemption

An exemption is:

• an allowance granted by way of a deduction in computing taxable income.

• interest

• a contribution

• a dividend

A tax credit:

• increases a taxpayer’s taxable income

• increases the amount of income tax owed

• reduces a taxpayer’s taxable income

• reduces the amount of income tax owed

A tax return is:

• the form on which a taxpayer reports his income

• a rebate

• a refund

• a deed evidencing the transfer of title

An additional charge because of a delinquency in an original income tax return is a(n)

• penalty

• crime

• amended tax return

• loss