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5 Finance Lit
Taxes 5.10 A/B
| Term | Definition |
|---|---|
| Deduction | An expense that a taxpayer can subtract from his or her gross income to reduce the total that is subject to income tax. |
| Gross Income | Income before tax and expenses. |
| Income Tax | Money that the government collects based on income, sales, and other activities. |
| Payroll Tax | A percentage withheld from an employee's pay by an employer who pays it to the government on the employee's behalf. |
| Property Tax | A tax paid on property owned by an individual. |
| Sales Tax | A tax that is added to the price of particular goods and services, usually as a percentage of the purchase price. |
| Wages | Payment for work done especially when figured by the hour or day. |