Personal Finance Chapter 7 Flashcards
Money collected by the government from various sources is known as _____.
Revenue
A tax that increases in proportion to increases in income is known as a(n) ________ tax.
progressive
Money eared by individuals that is subject to taxation is called _______ income.
taxable
In order to avoid itemizing deductions, a person may elect to take the ____, which is a flat amount.
standard deduction
Money paid to a former spouse (which is taxable income) for that person’s support is called.
Alimony
Money paid to a former spouse (which is taxable income) for the support of dependent children is called _______.
Child support
Expenses subtracted from gross income
deductions
the amount remaining when adjustments are subtracted from gross income
adjusted gross income
when sources of taxable income are added together the total is called
gross income
an amount that can be subtracted from your income for each person who depends on your income to live
exemption
this tax allows a higher income paying person to pay a lower percentage of income in taxes than a lower income person
regressive
a type of tax for which the rate stays the same regardless of income
proportional/flat
to intentionally fail to pay taxes owed is to commit a serious crime called _____
tax evasion
A tax system that is based on ___ requires all citizens to be responsible for preparing and filing their tax returns on time and paying taxes due
voluntary compliance
A ____ is an amount subtracted directly from tax owed
tax credit
