WorksheetsPersonal Finance - Chapter 3 Vocab (Taxes)
Total questions: 22
Worksheet time: 44mins
Name
Class
Date
1.
The amount of income remaining after subtracting all allowable adjustments to income from gross income.
a)
adjusted gross income (AGI)
b)
income shifting
c)
estimated taxes
d)
income taxes
2.
Allowable deductions from gross income, including certain employee, personal retirement, insurance, and support expenses
a)
adjustments to gross income
b)
tax audit
c)
exemptions
d)
average tax rate
3.
A tax return filed to adjust for information received after the filing date of the taxpayer’s original return or to correct errors
a)
amended return
b)
adjusted gross income (AGI)
c)
progressive tax structure
d)
estimated taxes
4.
The rate at which each dollar of taxable income is taxed on average
a)
average tax rate
b)
gross income
c)
standard deduction
d)
itemized deductions
5.
Tax payments required on income not subject to withholding that are paid in four installments
a)
estimated taxes
b)
income taxes
c)
tax audit
d)
adjusted gross income (AGI)
6.
Deductions from AGI based on the number of persons supported by the taxpayer’s income
a)
exemptions
b)
marginal tax rate
c)
tax credits
d)
standard deduction
7.
The law establishing the combined Old-Age, Survivor’s, Disability, and Hospital Insurance tax levied on both employer and employee
a)
Federal Insurance Contributions Act or Social Security tax
b)
estimated taxes
c)
adjustments to income
d)
amended return
8.
Taxes that an employer deducts from the employee’s gross earnings each pay period
a)
federal withholding taxes
b)
exemptions
c)
average tax rate
d)
marginal tax rate
9.
The total of all of a taxpayer’s income (before any adjustments, deductions, or exemptions) subject to federal taxes
a)
gross income
b)
standard deduction
c)
federal withholding taxes
d)
adjustments to gross income
10.
A technique used to reduce taxes in which a taxpayer shifts a portion of income to relatives in lower tax brackets.
a)
income shifting
b)
tax credits
c)
exemptions
d)
gross income
11.
A type of tax levied on taxable income by the federal government and by many state and local governments.
a)
income taxes
b)
tax evasion
c)
marginal tax rate
d)
exemptions
12.
Personal expenditures that can be deducted from AGI when determining taxable income
a)
itemized deductions
b)
taxable income
c)
progressive tax structure
d)
tax audit
13.
The tax rate that you pay on the next dollar of taxable income.
a)
marginal tax rate
b)
taxes
c)
tax audit
d)
tax credits
14.
A tax structure in which the larger the amount of taxable income, the higher the rate at which it is taxed
a)
progressive tax structure
b)
Federal Insurance Contributions Act or Social Security Tax
c)
tax avoidance
d)
tax evasion
15.
A blanket deduction that depends on the taxpayer’s filing status, age, and vision and can be taken by a taxpayer
a)
standard deduction
b)
marginal tax rate
c)
tax credits
d)
tax avoidance
16.
An examination by the IRS to validate the accuracy of a given tax return.
a)
tax audit
b)
adjustments to income
c)
taxes
d)
taxable income
17.
The act of reducing taxes in ways that are legal and compatible with the intent of Congress.
a)
tax avoidance
b)
average tax rate
c)
taxable income
d)
tax deferred
18.
Deductions from a taxpayer’s tax liability that directly reduce his or her taxes due rather than taxable income.
a)
tax credits
b)
exemptions
c)
gross income
d)
federal withholding taxes
19.
Income that is not subject to taxes immediately but that will be subject to taxes later.
a)
tax deferred
b)
federal withholding taxes
c)
income shifting
d)
taxes
20.
The illegal act of failing to report income or deductions accurately and, in extreme cases, failing to pay taxes altogether
a)
tax evasion
b)
gross income
c)
Federal Insurance Contributions Act or Social Security tax
d)
progressive tax structure
21.
The amount of income subject to taxes; it is calculated by subtracting adjustments, the larger of itemized or standard deductions, and exemptions from gross income.
a)
taxable income
b)
adjusted gross income (AGI)
c)
amended return
d)
income shifting
22.
The dues paid for membership in our society; the cost of living in this country.
a)
taxes
b)
estimated taxes
c)
adjusted gross income (AGI)
d)
Federal Insurance Contributions Act or Social Security tax
100 %
