Tax Vocabulary Quiz

What is the term for the amount of income that is subject to taxes?

• Deduction

• Taxable Income

• Exemption

• Gross Income

Which of the following is a tax levied directly on personal or corporate income?

• Sales Tax

• Excise Tax

• Income Tax

• Property Tax

What is the term for a reduction in taxable income for taxpayers who meet certain criteria?

• Credit

• Deduction

• Allowance

• Exemption

Which of the following is a tax imposed on the sale of specific goods and services?

• Income Tax

• Corporate Tax

• Sales Tax

• Estate Tax

What is the term for money spent or invested in order to generate income?

• Revenue

• Capital Gain

• Expense

• Asset

What do you call a tax on the estate, or total value of the money and property, of a person who has died?

• Inheritance Tax

• Estate Tax

• Gift Tax

• Capital Gains Tax

What is a tax credit that directly reduces the amount of tax owed?

• Deductible

• Refundable Credit

• Nonrefundable Credit

• Exemption

Which of the following refers to the practice of legally minimizing tax liability through careful, allowed uses of tax laws?

• Tax Evasion

• Tax Avoidance

• Tax Deduction

• Tax Fraud

What is the term for a direct tax imposed by a government on the income or profits of corporations?

• Corporate Tax

• Income Tax

• Capital Gains Tax

• Excise Tax

What is the term for the gain from an investment that is not taxed until the investment is sold?

• Dividend

• Capital Gain

• Interest Income

• Passive Income