Chapter 7: Federal Income Tax

Front 1

Revenue

Back 1

Money that the government spends according to priorities determined by congress

Front 2

Progressive Taxes

Back 2

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

Front 3

Regressive Taxes

Back 3

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

Front 4

Proportional Taxes

Back 4

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

Front 5

Tax Brackets

Back 5

Tax rates apply to income ranges

Front 6

Tax Evasion

Back 6

Willful failure to pay taxes

Front 7

Audit

Back 7

Examination of their tax returns

Front 8

Exemption

Back 8

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

Front 9

Gross Income

Back 9

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

Front 10

Child Support

Back 10

Money paid to a former spouse for support of dependent children

Front 11

Alimony

Back 11

Money paid to support a former spouse

Front 12

Adjusted Gross Income

Back 12

After these adjustments are subtracted from gross income

Front 13

Deductions

Back 13

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

Front 14

Itemize

Back 14

List allowable expenses on your tax return

Front 15

Standard Deduction

Back 15

A stated amount that you may subtract from adjusted gross income instead of itemizing your deductions

Front 16

Taxable Income

Back 16

The income on which you will pay tax

Front 17

Tax Credit

Back 17

An amount subtracted directly from the tax owed