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17 Cards in this Set
- Front
- Back
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Ability To Pay
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A criterion of tax fairness that people with different amounts of wealth or different amounts of income should pay different amounts of taxes.
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Adjust Gross Income
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Total income reduced by certain adjustments such as the IRA deduction and the deduction for alimony paid
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Benefits Recived
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a criterion of tax fairness that people should pay taxes in rough proportion to the benefits they recive from government goods and services
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business taxes
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taxes levied on busingess by federal, state, or local governments.
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credits
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a direct reduction of tax owned.
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dependent
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a person who relies on someone else for support.
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direct tax
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a tax that cannont be shifted to others. the federal income tax is good example of a direct tax
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dividends
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ordinary dividends are a corporation's distrubutions to its shareholders from its earnings and profits
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earned income
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includes wages, salaries, tips, and net earnings from self-employeed and other income recieved for personal services
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earned income credit
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a refundable credit for low-income workeers with children
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excise taxes
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taxes on the sale or used of specific products or transactions
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exempt (from withholding)
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free from federal income tax withholding requirements by meeting certain income
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exempt (from tax liability)
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tax law provides for a set amount which tax payers can claim for themselves
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file a return
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to file means to mail or otherwise convey to a regional IRS service center the appropriate IRS forms
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filing statues
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based on taxpayersmarital status and other factors, the filing status determines the tax bracket and rate at which income is taxed.
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Form W-4(employee's withholding allowance certificate)
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a form that helps an emplayer determine how much to withhold from an employees paycheck for federal income tax purposes
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Formal tax legislation process
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the strict constututional steps (
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