Taxes Vocab

Question 1

IRS

Answer 1

(International Revenue Service) is a U.S. Federal Agency that observes tax collection.

Question 2

Income

Answer 2

Money made from a job or investment.

Question 3

Revenue

Answer 3

Money earned from a specific source (company / organization).

Question 4

Tax Bracket

Answer 4

Range of incomes that are affected by taxes.

Question 5

Adjusted Gross Income

Answer 5

Income minus deductions (taxes).

Question 6

Progressive Tax System

Answer 6

Amount of taxes depend on the amount of income.

Question 7

Standard Deduction

Answer 7

The specific amount that reduces the amount of income taxed.

Question 8

Itemized Deduction

Answer 8

Payments you can take away from your AGI (reduced taxable income) to lower your tax bill.

Question 9

Dependent

Answer 9

A qualified dependent person related to a “taxpayer” (child/relative) that is not able to pay taxes.

Question 10

Pay Stub

Answer 10

A paper that an employee receives with every paycheck (shows all the money earned and the amount taken away by other expenses).

Question 11

Net Pay

Answer 11

Income received after all deductions.

Question 12

Gross pay

Answer 12

Income before any deductions (taxes).

Question 13

Finance

Answer 13

The management of money (banking, leverage, debt, credit, capital markets, money, investments)

Question 14

GDP

Answer 14

(Gross Domestic Product) measures the monetary value of goods and services.

Question 15

GNP

Answer 15

(Gross National Product) the total value of all finished goods and services.

Question 16

Fiscal

Answer 16

Taxation, public revenues, or public debt.

Question 17

Infrastructure

Answer 17

Framework of a system (buildings, roads, transportation, bridges).

Question 18

Subsidies

Answer 18

Grant / gift of money.

Question 19

Discretionary

Answer 19

Left to individual choice or judgment.

Question 20

Mandatory

Answer 20

Necessary, required by law.

Question 21

Asset

Answer 21

A resource with economic value that is owned that can offer benefits in the future.

Question 22

Flat Tax

Answer 22

When all taxable income is affected by the same tax rate, regardless of income or assets.

Question 23

CEO

Answer 23

(Chief Executive Officer) the highest ranked person in a company.

Question 24

CFO

Answer 24

(Chief Financial Officer) the top financial position in an organization.

Question 25

Outlier

Answer 25

“lies outside” the other values in a data set.

Question 26

Discretionary Income

Answer 26

Income left after paying for essential things, can choose how to spend it in any way.

Question 27

SWOT

Answer 27

A planning tool that evaluates the Strengths, Weaknesses, Opportunities, and Threats involved in a project / business.

Question 28

Tax Burden

Answer 28

The amount of tax paid by a person, company, or country in a specific time in relation to the total income in that time.

Question 29

Resource

Answer 29

A source of supply, support, or aid. Money or any property that can be converted into money (assets).

Question 30

W2 Form

Answer 30

A form that shows your income, amount of taxes withheld from your paycheck, benefits provided, etc.

Question 31

W4 Form

Answer 31

A form that you fill out to let your employer know how much money to withhold from your paycheck for federal taxes.

Question 32

Levy

Answer 32

to collect

Question 33

Tax Refund

Answer 33

a reimbursement to taxpayers who have overpaid their taxes.

Question 34

Non-tax Revenue

Answer 34

government revenue not made from taxes (renting out land to third parties like oil drill companies, lottery, parking meters)

Question 35

Expenditures

Answer 35

when the government spends money.

Question 36

Schedule A

Answer 36

a form for U.S. taxpayers who choose to itemize their tax-deductible expenses instead of using the standard deduction.

Question 37

Carryover

Answer 37

donate a lot to charity, can only get 60% back but there is leftover, can get the money the next year because it “carries” over (can only do that for up to 5 years).

Question 38

Income Tax

Answer 38

tax on people’s/business’ earnings (Federal, State, Local).

Question 39

Property Tax

Answer 39

tax paid on property, local tax.

Question 40

Estate Tax

Answer 40

tax on money / property that is paid when a person dies.

Question 41

Medicare Tax

Answer 41

health insurance for the elderly.

Question 42

Social Security

Answer 42

You pay taxes into the Social Security system. Based on your earnings, you, your spouse, and dependent children get monthly benefits when you retire.

Question 43

Gift Tax

Answer 43

the tax on money or property that a person or company gives to another.

Question 44

Withholding Tax

Answer 44

the amount of an employee’s pay withheld by the employer and sent directly to the government as partial payment of income tax (to not give).

Question 45

Tariff Tax

Answer 45

tax on important goods.

Question 46

Corporate Tax

Answer 46

tax on the profits of a business (paid these at the end of the year).