Chapter 6 Vocabulary

What is the primary purpose of taxes imposed by the government?

• To increase the wealth of citizens

• To fund public services

• To discourage spending

• To promote private businesses

The 1040 Form is used for what purpose?

• Reporting wages earned from an employer

• Filing an individual federal income tax return

• Reporting independent contractor income

• Claiming tax withholding allowances

What does the W-2 Form provide information about?

• Total earnings and tax withholdings for the year

• Income summary from sources other than wages

• How much federal income tax to withhold

• A fixed amount that reduces taxable income

What is the term for the total income before taxes and other deductions?

• Net Income

• Gross Income

• Adjusted Gross Income

• Taxable Income

Tags

CCSS.RI.9-10.4

CCSS.RI.9-10.4

CCSS.RI.11-12.4

CCSS.RI.7.4

CCSS.RI.8.4

Which agency is responsible for collecting federal taxes in the United States?

• Ohio Department of Taxation

• Internal Revenue Service

• Federal Reserve

• Department of Treasury

What is a tax bracket?

• A form used to report income

• A range of incomes taxed at a specific rate

• A fixed amount that reduces taxable income

• A person who relies on someone else for financial support

Tags

CCSS.7.RP.A.3

What is the purpose of the W-4 Form?

• To report total earnings and tax withholdings

• To determine how much federal income tax to withhold from a paycheck

• To summarize income from sources other than wages

• To file federal income taxes

What is the term for income remaining after taxes and deductions are subtracted?

• Gross Income

• Net Income

• Adjusted Gross Income

• Taxable Income

Tags

CCSS.L.11-12.4C

CCSS.L.6.4C

CCSS.L.7.4C

CCSS.L.8.4C

CCSS.L.9-10.4C

What is a dependent in terms of tax filing?

• A person who files their own tax return

• A person who relies on someone else for financial support and can be claimed on a tax return

• A person who audits tax returns

• A person who determines tax brackets

Tags

CCSS.L.11-12.4C

CCSS.L.6.4C

CCSS.L.7.4C

CCSS.L.8.4C

CCSS.L.9-10.4C

What is the standard deduction?

• A form used to report income

• A fixed amount that reduces the income subject to tax, depending on filing status

• A range of incomes taxed at a specific rate

• A review of tax returns by the IRS