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Chapter 2 + 3 Vocab

TermDefinition
Audit An examination of income tax returns by the IRS.
Benefits Forms of employer compensation in addition to pay.
Dividends Money payed to stockholders from the corporation's earnings.
Exemption An amount you may subtract from your income for each person who depends on your income to live.
Filing Status Your tax-filing group based on your marital status as of the last day of the tax year.
Gross Pay The total amount an employee earns before deductions are subtracted.
Net Pay The amount left after all deductions are taken from an employee's gross pay.
Progressive Tax A tax that takes a larger share of one's income as the amount of the income grows.
Proportional Tax A tax for which the rate stays the same, regardless of one's income.
Salary A fixed annual amount of gross pay.
Tax Bracket An income range that a tax rate is applied to.
Tax Credit A reduction of taxes owed.
Tax Liability The amount of total tax you owe on a years income.
Union A group of people who work in the same or similar occupations.
Wage A fixed hourly rate, earned by employees.
Created by: wesemanc
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