WorksheetsFinancial Lit C6 Income Tax
Total questions: 20
Worksheet time: 10mins
flat tax system
tax rates are the same for all; also called proportional tax
tax rates vary based on income levels
only applies to corporate taxes
a tax system with multiple rates for different income brackets
tax
an amount of money required to be paid to the government
a type of investment
a form of insurance
a penalty for late payment
constraint
A limitation on a set of outcomes in math.
An equation that has no solutions.
A variable that can take any value.
A method to solve complex problems.
Flexible Spending Account (FSA)
money withheld and placed into account(s) to pay for certain medical expenses, childcare, and prenatal care
a type of savings account for retirement
a government program for low-income families
a loan for purchasing a home
Federal Insurance Contributions Act (FICA)
A federal tax for Medicare only
Another name for Social Security (taxes)
A state tax for unemployment insurance
A tax on corporate profits
tax liability
the amount of taxes a person is responsible for paying
a tax refund received from the government
the total income earned by an individual
the percentage of income that is taxed
property tax
a tax on something you own (for example, land or a house)
a fee for public services provided by the government
a tax on income earned from investments
a charge for the maintenance of public roads
tax-deferred contributions
money withheld and placed in qualified accounts (like certain retirement accounts); taxes are not paid until the money is withdrawn
immediate tax payments on contributions made to retirement accounts
contributions that are taxed at a higher rate upon withdrawal
funds that can be accessed without any tax implications
progressive tax system
tax rates remain constant regardless of income
tax rates decrease as income increases
tax rates increase as income increases
tax rates are the same for everyone
Form W-4
Employees Withholding Allowance Certificate, which directs an employer how much income tax to withhold
Tax Return Form for Self-Employed Individuals
Application for Employer Identification Number
Form for Reporting Foreign Bank Accounts
filing status
a description of your marital and family status reported when filing your income tax return
a summary of your income and expenses for the year
a record of your tax payments made throughout the year
a classification of your tax deductions based on your income level
taxable income
the total income before any deductions
the amount of income you must pay taxes on (after standard or itemized deductions)
the income that is exempt from taxation
the income earned from investments only
gross pay
total pay before taxes and other deductions
net pay after taxes
total deductions from salary
average pay per hour
tax avoidance
using rules and laws to lower your taxes
illegally evading tax payments
paying taxes on time and in full
taking advantage of tax loopholes without legal backing
sales tax
a tax on things you buy
a fee for services rendered
a tax on income earned
a charge for using public services
tax evasion
lying or deliberately omitting items on tax return (or not filing/paying)
accurately reporting all income and deductions
filing taxes on time without any errors
paying taxes in full and on time
standard deduction
an amount the IRS allows taxpayers to deduct from their income before computing their tax liability
a tax credit that reduces the amount of tax owed
a fee paid to the IRS for filing taxes
an additional amount added to taxable income
tax credit
an amount you subtract from your tax AFTER it is calculated
a fee added to your tax before it is calculated
a percentage of your income that is taxed
a refund you receive after filing your taxes
Form 1099
Tax form that reports interest earned, royalties, contract work, unemployment benefits, and other non-employee income
Tax form used for reporting personal income tax
Tax form for reporting corporate profits
Tax form for reporting capital gains
income tax
a tax on your earnings
a fee for public services
a tax on property ownership
a charge for government regulations
