Chapter 2 Consumer

Chapter 2 Consumer

Term Definition
Audit An examination of income tax returns by the IRS
Benefits Forms of employers compensation in addition to pay
Dividends Money paid to stockholders from the corporations earnings
Exemption An amount you may subtract from your income for each person who depends on your income to live
Filing Status Your tax filing group based on your marital status as of the last day of the tax year
Gross pay The total amount an employee earns before deductions are subtracted
Net Pay the amount left after all deductions are taken from an employee's gross pay
Progressive Tax A tax that takes a larger share of ones income as the amount of income grows
Proportional tax A tax for which the rate stays the same regardless of ones income
Regressive Tax a tax that takes a smaller share of ones income as the amount of income grows
Salary a fixed annual amount of gross pay
Tax bracket An income range that a tax rate is applied to
Tax Credit reduction of taxes owed
Tax Liability the amount of total tax you owe on a years income
Union `a group of people who work in the same
Wage

Leave a Reply

Your email address will not be published. Required fields are marked *