Chapter 7-Federal Income Tax

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Revenue

Back 1

Money collected by the government from citizens and businesses in the form of taxes.

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Progressive Taxes

Back 2

Taxes that take a larger share of income as the amount of income grows.

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Regressive Taxes

Back 3

Taxes that take a smaller share of income as the amount of income grows.

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Proportional Taxes

Back 4

Taxes for which the rate stays the same, regardless of income.

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Tax Brackets

Back 5

Income ranges to which tax rates apply.

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Tax Evasion

Back 6

Willful failure to pay taxes.

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Audit

Back 7

The examintation of your tax returns by the International Revenue Service.

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Exemption

Back 8

An amount you may subtract from your income for each person who depends on your income to live.

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Gross Income

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All the taxable income you receive, including wages, tips, salaries, interest, dividends, unemployment compensation, alimony workers' compensation benefits, and so forth.

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Child Support

Back 10

Money paid to a former spouse for support for dependent children.

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Alimony

Back 11

Money paid to support a former spouse.

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Adjusted Gross Income

Back 12

The result of adjustments subtracted from gross income.

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Deductions

Back 13

Expenses the law allows you to subtract from your adjusted gross income to determine your taxable income.

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Itemize

Back 14

To list allowable exoenses on your tax return.

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Standard Deduction

Back 15

Stated amount that you may subtractfrom adjusted gross income instead of itemizing your deductions.

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Taxable Income

Back 16

The income on which you will pay tax.

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Tax Credit

Back 17

An amount subtracted directly from the tax owed.