The “ability to ___ principle” is an accepted principle of tax fairness. Pay

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 SpouseThe Person Who Prepared the Return

All of them

The income tax is an example of which type of tax:

ProgressiveProportionalRegressive

Excise

Progressive

Sales tax is an example of which type of tax?ProgressiveProportionalRegressive

Excise

Regressive

Property tax is an example of which type of tax?

ProgressiveProportionalRegressive

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!