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1000 Vocabulary
PF
| Term | Definition |
|---|---|
| audit | an official IRS inspection of a tax return to make sure the income and deductions are accurate |
| capital gains tax | a tax on the positive difference between the sale price and the value of a gift when it was inherited |
| consumption tax | a tax on the purchase of goods or services in the form of sales tax, excise tax, and other special taxes |
| deficit spending | spending more than you earn; an economic policy in which the government spends public funds raised by borrowing rather than by taxation |
| earned income | any income (wages/salary) that is generated by the work someone performs |
| estate tax | a tax that’s imposed on a property owner’s right to transfer the property to others after their death |
| excise tax | a tax on certain goods that aren’t typically considered a necessity; sometimes called a luxury tax |
| fiscal year | a one-year period that governments or companies use for financial reporting |
| gift tax | a tax on any asset that exceeds the yearly amount you can transfer to another person without compensation or equal value |
| gross income | the amount you earn before taxes and other payroll deductions |
| income tax | tax paid out by anyone who earns income |
| inheritance tax | a state tax on an asset an individual received from someone who has passed away |
| itemized deductions | a list of all eligible expenses that can be claimed to decrease taxable income |
| minimum wage | the smallest amount that employers can legally pay their employees per hour of work |
| national debt | the total amount of debt a country owes to companies and other countries as a result of deficit spending |
| net income | what a persona earns after payroll taxes and other deductions are taken out; often referred to as take-home pay |
| paper asset | a representation (on paper) of stocks, bonds, currencies, mutual funds, etc. |
| passive income | money earned on a regular basis with little or no effort required to maintain it |
| portfolio income | income from an investment sold at a higher price than you paid for it |
| property tax | taxes paid by anyone who owns property, such as land, a home, or commercial real estate |
| salary | a fixed annual amount earned by an employee, typically paid weekly, biweekly, or monthly |
| sales tax | a tax on goods and services that goes to a state or local government |
| standard deduction | the dollar amount people can subtract from their income before the tax is calculated |
| tax bracket | the income ranges in which tax rates apply |
| tax credit | an amount of money a taxpayer can subtract from the taxes they owe |
| tax day | the annual deadline for filing your income taxes; usually falls on April 15 |
| tax liability | the total tax a person or business has to pay |
| tax return | a report that a taxpayer has to submit annually to the government and is used to determine a person’s tax liability |
| tax schedule | a special tax for to report certain types of income or deductions |
| wage | money paid by the hour and for an agreed number of hours per week; especially for unskilled or manual labor |
| wealth tax | a tax based on the market value of owned assets |
| withholdings | the portion of an employee’s pay held back to cover taxes and other deductions |
Created by:
dupreejp
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