Chapter 7

Question 1

A person reported on a taxpayers income tax form that a taxpayer supports financially

Answer 1

Dependent

Question 2

Information included on tax forms that lowers taxes; include dependents as well as the taxpayer

Answer 2

Exemption

Question 3

A tax that is the same percentage of rate for everyone, such as sales tax

Answer 3

Flat Tax

Question 4

A form that is filled out by a new employee that gives directions to the government on how much money in taxes to deduct from an employees pay

Answer 4

Form w-4

Question 5

A form used to report the withholding data; a Wage and Tax Statement given to employees to compute federal, state, and local income taxes

Answer 5

Form W-2

Question 6

A form used to report other income made from interest on bank accounts, stocks, and royalties

Answer 6

Form 1099

Question 7

A tax form used by people that have other types of income such as royalties, alimony, or prizes, also called log form

Answer 7

Form 1040

Question 8

The total pay, which is the sum of an employee’s hourly pay and overtime pay

Answer 8

Gross pay

Question 9

Special status for unmarried taxpayers who support other people besides themselves and their children

Answer 9

Head of household

Question 10

Taxes that are based on the amount of taxable income that you earn

Answer 10

Income Tax

Question 11

Government agency that collects federal taxes

Answer 11

IRS

Question 12

When deductions are listed on an income tax form

Answer 12

Itemize

Question 13

Filing status for married taxpayers who chose to fill out separate income tax returns

Answer 13

Married filing jointly

Question 14

Filing status for married taxpayers that chose to fill out one income tax return together

Answer 14

Married filing seperatly

Question 15

A form of payment to employees for their work

Answer 15

Paycheck

Question 16

A tax that increases as income increases; the percentage or rate increases

Answer 16

Progressive tax system

Question 17

Taxes that are based on the assessed value of property owned

Answer 17

Property tax

Question 18

A percentage paid to the government of sales on products or services

Answer 18

Sales tax

Question 19

Filing status for unmarried taxpayers that is indicated on tax forms which determines the tax rate paid

Answer 19

Single

Question 20

An allowable reduction on income tax forms that is based on the filing status

Answer 20

Standard deduction

Question 21

The amount of money a worker takes home after deductions

Answer 21

Take home pay

Question 22

The amount of money a person must pay to the government to benefit from government services

Answer 22

Tax

Question 23

Earnings that are taxable

Answer 23

Taxable income

Question 24

When a taxpayer uses a tax rule to lower the amount of tax due

Answer 24

Tax avoidance

Question 25

Where each line of the tax schedule has an increasing percent based on increasing income

Answer 25

Tax bracket

Question 26

An amount subtracted from the income tax owed

Answer 26

Tax credit

Question 27

When money is placed in a qualified retirement account, the taxes are deferred until the taxpayer makes a withdrawal from the account until after retirement

Answer 27

Tax deferred contribution

Question 28

When a taxpayer lies about information on a tax return form in an attempt to avoid paying taxes

Answer 28

Tax evasion