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Chapter 2

Chapter 2 Vocabulary

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2.Gross income less reductions that are allowable, regardless of whether personal deductions are itemized. (3 Words)
5.The amount taken out of income by the payer and submitted to the IRS as an advance payment. (4 Words)
7.The amount of total tax due the IRS after any credits and before taking into account any advance payments. (2 Words)
10.An amount ($3,800 for 2012) allowed by law as a reduction of income that would otherwise be taxed.
11.Rather it is used within such descriptive terms as gross income, taxable income, and adjusted gross income.
12.Total worldwide income received in the form of money, property, or services that is subject to tax. (2 Words)
13.Total wages paid to an employee that are subject to this tax. (3 Words)
1.6.2% of the first $110,100 of the employee's gross wages (for 2012). (4 Words)
3.Income from personal services as distinguished from income generated by property or other sources. (2 Words)
4.Reductions of tax liability allowed for various purposes to taxpayers who meet the qualifications.
6.Adjusted gross income less itemized deductions or the standard deduction, less allowable personal and dependent exemption amounts. (2 Words)
8.A tax rate is 1.45% of gross wages (2.9% for self-employed individuals). (3 Words)
9.It also includes pensions, alimony, unemployment compensation, and other income that is not earned. (2 Words)

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