Final Review (Tax & Budget- Part I)

An amount that a taxpayer can claim for each person who is dependent on that person’s income.

• standard deduction

• exemption

• itemize deduction

• social security

Gross pay minus payroll deductions

• gross pay

• standard deductions

• net pay

• payroll deductions

An amount that is subtracted from adjusted gross income, which further reduces taxable income

• standard deduction

• payroll deduction

• taxable income

• tax deduction

A fixed amount that may be deducted from adjusted gross income

• standard deduction

• tax deduction

• payroll deduction

• tax credit

A report containing information used to calculate taxes owned by a taxpayer.

• taxable income

• tax credit

• tax credit

• tax return

Income received from employment or from self-employment.

• earned income

• unearned income

• bonus

• gift

Process used by individuals to manage limited income to meet personal unlimited needs and wants.

• spending

• estate plan

• personal financial management

• tax strategy

The lowest hourly wage employers can pay most  workers by law

• commission

• minimum wages

• salary

• hourly wage

Taxes paid by the employee and employer that are used to finance the federal Social Security and Medicare programs.

• Sales Tax

• FICA

• Federal Income Tax

• State Income Tax

The amount on which taxes are calculated.

• taxable income

• lottery winnings

• income tax

• tax source