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Chapter 2 & 3


Audit An examination of income tax returns by the IRS.
Benefits Forms of employer compensation in addition to pay.
Dividends Money paid to stockholders from the corporations 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
Proportional Tax
Regressive tax
Tax Bracket
Tax Credit
Tax Liability
Created by: lamasjaz12