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30 Cards in this Set
- Front
- Back
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a set of forms that taxpayers use to calculate their tax obligations
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tax return
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wages, tips, and interest
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income
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total income from all sources including interest
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adjusted gross income
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adjusted gross income minus exemptions and standard deduction (income figure used to determine how much you owe on taxes)
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taxable income
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the amount you are allowed to deduct from your income before it is taxed
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standard deduction
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in the back of each form's instruction booklet this is a list of ranges of income and their corresponding tax amounts
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tax table
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a number that reduces the amount of money withheld from your pay
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allowance
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this means you do not have federal taxes witheld from your pay check
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exempt
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this type of tax system takes a large % of income for taxes as the amount of income grows
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progressive
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this type of tax system takes a smaller % of income for taxes as the amount of income grows
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regressive
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this type of tax system has everyone pay the same percentage of income in taxes (not based on income)
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proportional tax
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theory that says those who use a good/service provided by the government should have to pay for it
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benefits-received
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theory that says those who have large incomes should pay more
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ability-to-pay
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taxes paid directly to the government
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direct tax
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taxes paid that are included in the price of a good
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indirect tax
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taxes paid as you earn income (federal witholding tax from your pay)
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pay as you earn
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this form is used so that an employer can withold the correct federal income tax from your pay
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W-4
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summary of earnings and witholdings for the year for a job (attached to a tax return)
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W-2
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statement of the interest (unearned income) our bank paid on your savings that year
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1099INT
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simplest form to use when filing for federal tax return
- income below 100,000 -single or married filing jointly -under 65 -no dependence |
1040EZ
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illinois state individual income tax return form (every illinois citizen must complete this form)
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IL-1040
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federal personal income tax is an example of what kind of tax?
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direct progressive
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state personal income tax is an example of what kind of tax?
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direct proportional
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sales tax is an example of what kind of tax?
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indirect regressive
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property tax is an example of what kind of tax?
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direct progressive
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(____) is the idea that we willingly file our federal income taxes each year
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voluntary compliance
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your employer must send your Form W2 and your bank must send your Form 1099 by..?
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Jan 31
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the main source of revenue for the federal government
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federal income tax
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main source of revenue for the state government
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sales tax
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main source of revenue for the local government
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property tax
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