The “ability to ___ principle” is an
accepted principle of tax fairness.
Pay
_____ collected are used to
provide education and public
services.
Taxes
You must use Form ____ if your
taxable income exceeds
$100,000.
1040A
In a graduated tax system, tax
rates ______ as income
increases.
Increase
A person who lives with you
and receives support from you
is called a/an _________.
Dependent
You must ____ a tax return to
receive a refund of taxes
withheld unnecessarily.
File
To itemize deductions, you must
use the Long Form ______.
1040 (Schedule A)
Each ________ claimed by a
taxpayer reduces total tax
liability.
Exemption
Taxpayers should not itemize
unless their deductions
exceed the ______ deduction.
Standard
Taxes based on the ability to
pay is called __________.
Progressive
______ taxes are based on a
flat rate that does not change
according to income level.
Proportional
You can not itemize
deductions on Form _____.
1040 EZ
Use of a tax ______ does not
absolve one from an error on
your tax return.
Preparer
The sole function of the _____
is to collect income taxes and
to enforce tax laws.
Internal Revenue Service
(IRS)
The power to levy taxes rests
with ______.
Congress
Worker’s compensation and
unemployment compensation
are _______.
Taxable
Which of the following is not a
taxable income:
Wages, Tips, Salaries, Alimony,
Child Support
Child Support
By designating $3 to the
Presidential Election
Campaign Fund, you do not
increase your ______.
Liability
In the U.S., responsibility for
paying income taxes rests with
the ________.
Individual
Tax ____ is a serious crime
punishable by a fine or
imprisonment or both.
Evasion
If you have many deductions, it’s
a good idea to ______ instead of
taking the standard deduction.
Itemize
The largest source of
government income in the
U.S. is _______
Income Taxes
Which of the following people must
sign a tax return?
The Tax Payer
The Tax Payer’s Spouse
The Person Who Prepared the Return
All of them
The income tax is an example of
which type of tax:
Progressive
Proportional
Regressive
Excise
Progressive
Sales tax is an example of which
type of tax?
Progressive
Proportional
Regressive
Excise
Regressive
Property tax is an example of
which type of tax?
Progressive
Proportional
Regressive
Excise
Proportional
As taxable income increase,
income tax rates _____.
Decrease
The first income tax became
necessary during what war?
War of 1812
You must file your income tax
returns no later than _____.
April 15
An examination of tax returns by
the IRS is called an ______.
Audit
Definitions:
A person who can be claimed as
an exemption by a tax payer.
Dependent
A type of income that must be
claimed on a Form 1040.
Alimony
Taxes that increase in
proportion to income
Progressive
A type of income received that
is not taxable.
Child Support
Taxes for which the rate
remains constant, regardless
of the amount of income
Proportional
Money collected by the
government through taxes.
Revenue
The type of tax that requires
those who can least afford it to
pay the most in proportion to
their income.
Regressive
Willful failure to file and pay
taxes.
Tax Evasion
An amount you may subtract
from your income for each
person who depends on your
income to live.
Exemption
A person who can be claimed as
an exemption by a taxpayer
Dependent
Income ranges where the
more you make the higher the
tax rate you pay
Tax Brackets
To list allowable expenses on
your tax returns.
Itemize
Good Luck on Your Test!