Direct expenses taxpayers may subtract from their AGI before tax is determined

Income received that is not included in AGI

The sum of wages and taxable interest minus exclusions.

The part of income you must pay taxes on.

Tax paid on earned income

Collected from employers and employees to provide retirement benefits such as social security and Medicare.

Tax levied on assets after death

Tax levied on the sale of goods and services

The tax system in the US is a ______ tax system.

How many allowances will result in the MOST taxes to be withheld on the W-4?

When you fill out a ______, your employer withholds taxes out of your paycheck.

When you fill out a ______, your employer does not withhold taxes out of your paycheck.

You fill out a ______ in order to file your taxes.

This form indicates how much money you made and how much of your taxes were withheld by your employer for the previous year.

When you calculate your taxes, if the balance owed to the IRS is less than zero, you will receive a(n) _________.

You can not be claimed as a dependent after you turn 18.

The proportion of total income paid in income taxes.

Tax planning includes eliminating, reducing or deferring income taxes to be paid.

Personal income taxes are paid only on your taxable income.

A progressive tax is one that demands a higher percentage of a person's income as income increases.

A progressive tax is one that demands a higher percentage of a person's income as income increases.

The money you receive back because you have overpaid your taxes is called a tax return.

Both alimony and child support received are considered part of gross income for income tax purposes.

Cash contributions to qualified organizations, such as churches, schools, and other qualifying charities, require a receipt for a contribution of $250 or more.

Adjustments (Exclusions) to gross income

Sally McKracken is a single young professional with an adjusted gross income of $51,000. Sally has no adjustments to gross income, but she does have itemized deductions totaling $7,200. If the standard deduction is $12,950, what is Sally's taxable income?

Which of the following types of subtractions cannot be taken by a taxpayer if he or she itemizes deductions?

Sal is a 27-year-old single taxpayer in the 28 percent marginal tax bracket. Assuming Sal's standard deduction is $12,950 and she has itemized deductions totaling $13,500, Sal should take the ____.