Tax Terminology

2. Individuals, such as children or elderly relatives, for whom a taxpayer may claim tax benefits.
3. Money put into retirement accounts like 401(k)s or IRAs, often with tax advantages.
4. An individual or entity that is required to pay taxes to the government.
5. Total income earned by an individual before any deductions or taxes are applied.
8. An amount that directly reduces the tax owed, such as for education or energy-efficient purchases.
9. A record of all transactions and activities related to a tax return, used for verification during audits.
10. Income that is subject to taxation after deductions and exemptions.
13. A method of deducting specific expenses (e.g., mortgage interest, medical expenses) instead of taking the standard deduction.
14. A government program that provides retirement, disability, and survivor benefits funded by FICA taxes.
15. A change made to a previously filed tax return.
19. A form used in addition to the 1040 form to report various types of income, deductions, and credits.
20. The amount of tax paid in excess of the tax liability, returned to the taxpayer.
22. A range of income that is taxed at a specific rate under the progressive tax system.
23. The total amount of taxes owed to the government.
24. The amount of tax taken out of an employee’s paycheck by the employer and sent directly to the IRS.

1. A type of tax credit that can result in a refund if the credit amount exceeds the tax liability.
6. Profit from the sale of an asset, such as stocks, real estate, or business investments.
7. A person who works for themselves and is responsible for paying their own taxes.
11. A formal review of a taxpayer's financial records by the IRS.
12. A special tax calculation that ensures that individuals with higher incomes pay at least a minimum amount of taxes, regardless of deductions.
16. A portion of income that is not subject to taxation, typically for dependents or special cases.
17. The standard form used by U.S. individuals to file their annual income tax returns.
18. Expenses that can be subtracted from taxable income, reducing the amount of tax owed.
21. Federal Insurance Contributions Act tax, which funds Social Security and Medicare.
24. A form used by employers to report an employee's wages and tax withholding.