1. Chapter 7 Tax Review Personal Finance

2. IRS stands for….

3. Internal Revenue Service

4. List the five classifications of filing status

5. SingleMarried filing jointlyMarried filing separatelyHead of householdWidow(er) w/ dependent child

6. If you have more than $400 in interest or dividend income, what schedule do you need to file with your 1040A or 1040?

7. Schedule 1

8. To itemize deductions, you will most likely need to file a ?????

9. 1040

10. Charitable contributions, medical expenses, dental expenses, some moving expenses, real estate taxes, and home mortgage interest are examples of _________ ________.

11. Itemized deductions

12. The most you can make and still file a 1040EZ is ___________.

13. $50,000

14. Taxes based on the ‘ability to pay’ principle (people with higher incomes pay more than those with lower income) are called _________________.

15. Progressive

16. Sales tax is an example of a(n) ____________ tax.

17. Regressive Tax

18. The Social Security Act of 1935 created the IRS.

19. Congress has the power to levy taxes.

20. How many tax brackets does our income tax system have at the present time?

21. FIVE (10% up to 35%)

22. What is it called when the government spends more than it receives in revenue?

23. Deficit

24. What is voluntary compliance?

25. …that all citizens are expected to prepare and file income tax returns.

26. What is an audit?

27. …when the IRS examines a tax return in detail.

28. Is child support taxable as income?

29. No. It is also not deductible for the person paying it.

30. What does AGI stand for?

31. Adjusted Gross Income

32. What is a W-2?

33. …a wage and tax statement.