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Unit 2: Taxes

Horizontales
Increasing income and tax rate listed in lines on tax schedule
Information included on tax forms that lowers taxes
Amount subtracted from taxpayer's income before tax owed
__________ deduction: allowable reduction on income tax forms based on filing status
Filing status for unmarried taxpayers who support dependents
"Take-home" pay (after deductions)
Flat tax on goods or services
Based on assessed value of items owned (house, land, car)
Tax papers used or needed for specific reasons (e.g., 1040EZ, Schedule A, 1099)
Form used to report interest income or income from dividends
Plan where employee deposits pre-tax funds to be used in 12-month period (e.g., for healthcare or childcare)
Verticales
Tax rate (percent) increases as income increases
Same percent/rate for everyone
Using rules/laws to lower taxes due (legal)
Total earned before deductions (regular and overtime pay)
Person supported financially by taxpayer
Lying on tax return to avoid paying taxes (illegal)
Amount subtracted from income tax owed
Percent owed based on salary earned
To list deductions on an income tax form
Form used to list (itemize) deductions
Money owed to the government (People HATE to pay these!)