Chapter 3 Flashcards
Sales tax and excise tax
Taxes on Purchases
is income that will be taxed at a later date.
Tax-deferred income
is an amount not included in gross income.
exclusion
is not subject to tax.
Tax-exempt income
is an amount subtracted from adjusted
gross income (AGI) to arrive at taxable income.
Tax deduction
reduced by certain adjustments, described below
Gross income
is an investment that provides immediate tax benefits.
A tax shelter
an investment that provides immediate tax benefits.
tax shelter
is an amount subtracted from adjusted
gross income (AGI) to arrive at taxable income.
Tax deduction
subtracted from AGI
Exemptions
is a deduction for yourself, your spouse, or qualified dependents
Exemptions
Tax table rates
marginal rates
is the total tax due divided by taxable income.
average tax rate
Paid by taxpayers with high amounts of certain deductions and various types of income
Alternative Minimum Tax (AMT)
Designed to ensure that those who receive tax breaks also pay their fair share of taxes
Alternative Minimum Tax (AMT)
Amount subtracted directly from the amount of taxes owed
Tax credit
automaticsix-monthextension
Form 4868
Underpayment of quarterly estimated taxes may require paying interest on the amount owed.
Penalties and interest
Real estate property tax
Personal property tax
Taxes on property
Federal estate tax
Attacks impose on the value of a persons property at the time of death
What are the two types of taxes on the wealth
Federal estate tax
State inheritance tax
A tax levied on the value of property bequeathed by a
deceased
State inheritance tax
What are the four types of taxes?
Texas on purchase
Taxes on property
Taxis in the wealth
Texas on earnings
a detailed examination of your tax return by the IRS.
Tax audit
Legitimate methods to reduce your tax obligation to
your fair share but no more
Practice tax avoidance
Illegally not paying all the taxes you owe, such as not
reporting all income
TaxEvasion
