Unit 1 Taxes Vocabulary Exam

The standard Internal Revenue Service (IRS) form that individuals can use to file their annual income tax returns

• 1040

• Allowances

• Audit

• Capital Gain

A form that details all "non-employee" compensation, including for specific jobs like freelancers or contractors

• 1099

• Allowances

• Audit

• Capital Gain

Employee-claimed exemptions on the W-4 to determine how much of an employee's pay to withhold from his or her paycheck for taxes

• 1099

• Allowances

• Audit

• Capital Gain

An inspection of a filer's tax return by the IRS

• 1099

• Allowances

• Audit

• Capital Gain

Profit from the sale of an asset, such as a stock or a bond, calculated by subtracting the price you initially paid from the price you then sold it for

• 1099

• Allowances

• Audit

• Capital Gain

A percentage of profits paid by a business to the federal and state government

• Corporate Income Tax

• Allowances

• Audit

• Capital Gain

Someone you financially support who can be "claimed" on a tax return to reduce your taxable income and lower your taxes

• Corporate Income Tax

• Allowances

• Dependent

• Capital Gain

Spending by the federal government determined by legislative action and approved through votes by elected officials

• Corporate Income Tax

• Allowances

• Dependent

• Discretionary Spending

Money from the profits of a company that is paid out to its shareholders, typically on a quarterly basis

• Corporate Income Tax

• Dividend

• Dependent

• Discretionary Spending

Any income (wages/salary) that is generated by working

• Earned Income

• Dividend

• Dependent

• Discretionary Spending