Income Tax Vocab

3. The total amount of tax a person or business legally owes for a tax year
6. A tax added to the price of goods and services at the point of sale
9. A tax imposed by the government on earnings of individuals or businesses
10. The income range that determines which rate applies to that portion of income
12. (IRS) The federal agency responsible for collecting taxes and enforcing tax laws
14. The portion of wages withheld by an employer and sent directly to the government
16. A person who relies on a taxpayer for support and may be claimed on a tax return
18. A fixed dollar amount the IRS allows taxpayers to subtract from income without itemizing
21. A tax system where every taxpayer pays the same fixed percentage rate
22. A system where higher income levels are taxed at increasingly higher rates

1. The principle that taxpayers are expected to honestly report income and pay taxes on their own
2. Money put into a qualified account on which taxes are postponed until withdrawal
4. A tax structure where the percentage paid decreases as income increases
5. A tax where all taxpayers pay the same share of income; another name for a flat tax
7. The portion of income subject to tax after all deductions are applied
8. A pre-tax benefit account used to pay for qualified medical or dependent care expenses
11. The illegal act of deliberately failing to report income or underpaying taxes
13. A dollar-for-dollar reduction applied directly to the amount of tax owed
15. The legal use of deductions and strategies to reduce the amount of tax owed
17. A tax levied on real estate based on its assessed value
19. The official form or forms filed with the government reporting income, deductions, and taxes
20. Amounts subtracted from income that lower the amount subject to tax