Understanding Tax Terms

What is a Tax Return?

• A report that a taxpayer has to submit annually to the government and is used to determine a person‘s tax liability

• A tax based on the market value of owned assets

• A tax on the purchase of goods or services

• A tax on any asset that exceeds the yearly amount you can transfer to another person without compensation of equal value

What is Tax Day?

• The annual deadline for filing your income taxes; usually falls on April 15

• A tax on the positive difference between the sale price and the value of a gift when it was inherited

• A tax that‘s imposed on a property owner’s right to transfer the property to others after their death

• A tax on certain goods that aren‘t typically considered a necessity

What is Standard Deduction?

• The dollar amount people can subtract from their income before the tax is calculated

• A tax on the purchase of goods or services

• A tax on the positive difference between the sale price and the value of a gift when it was inherited

• A tax on any asset that exceeds the yearly amount you can transfer to another person without compensation of equal value

What is a Tax Schedule?

• A special tax form to report certain types of income or deductions

• A tax on the purchase of goods or services

• A tax on any asset that exceeds the yearly amount you can transfer to another person without compensation of equal value

• A tax that‘s imposed on a property owner’s right to transfer the property to others after their death

What are Itemized Deductions?

• A list of all eligible expenses that can be claimed to decrease taxable income

• A tax on the purchase of goods or services

• A tax on any asset that exceeds the yearly amount you can transfer to another person without compensation of equal value

• A tax that‘s imposed on a property owner’s right to transfer the property to others after their death

What is a Tax Credit?

• An amount of money a taxpayer can subtract from the taxes they owe

• A tax on the purchase of goods or services

• A tax on any asset that exceeds the yearly amount you can transfer to another person without compensation of equal value

• A tax that‘s imposed on a property owner’s right to transfer the property to others after their death

What is an Audit?

• An official IRS inspection of a tax return to make sure the income and deductions are accurate

• A tax on the purchase of goods or services

• A tax on any asset that exceeds the yearly amount you can transfer to another person without compensation of equal value

• A tax that‘s imposed on a property owner’s right to transfer the property to others after their death

What is a Wealth Tax?

• A tax based on the market value of owned assets

• A tax on the purchase of goods or services

• A tax on any asset that exceeds the yearly amount you can transfer to another person without compensation of equal value

• A tax that‘s imposed on a property owner’s right to transfer the property to others after their death

What is Property Tax?

• Taxes paid by anyone who owns property, such as land, a home, or commercial real estate

• A tax on the purchase of goods or services

• A tax on any asset that exceeds the yearly amount you can transfer to another person without compensation of equal value

• A tax that‘s imposed on a property owner’s right to transfer the property to others after their death

What is Capital Gains Tax?

• A tax on the positive difference between the sale price and the value of a gift when it was inherited

• A tax on the purchase of goods or services

• A tax on any asset that exceeds the yearly amount you can transfer to another person without compensation of equal value

• A tax that‘s imposed on a property owner’s right to transfer the property to others after their death