Income Tax Fundamentals Exam 2023
Tax liability - ANSWER-total amount of taxes you owe Estate Tax - ANSWER-federal tax collected on the value of a perso's property at the timeof his or her death. Inheritance Tax - ANSWER-state tax collected on the property left by a person to his or heir(s) in will. Income Tax - ANSWER-tax on wages, salaries, and self-emplyed earnings Income Tax Return - ANSWER-a form , such as 1040 or 1040EZ on which a taxpayer reports how much monay he or she received from working and other sources and the exact taxes that are owed. Exclusion - ANSWER-income that is not subject to taxes. Adjusted Gross Income - ANSWER-gross income after calculating certain reductions Taxable Income - ANSWER-adjusted gross income less any allowable tax deductions and exemptions. Tax Deduction - ANSWER-expense that you can subtract from your adjusted gross income to figure your taxable income Standard Deduction - ANSWER-an amount of money set by the IRS that i not taxed. Itemized Deduction - ANSWER-specific expense, such as a medical expense , that you can deduct from your adjusted gross income.
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