The

1
The ability to ___ principle is an accepted
principle of tax fairness.

• Pay

2
_____ collected are used to provide education and
public services.

• Taxes

3
You must use Form ____ if your taxable income
exceeds 100,000.

• 1040A

4
In a graduated tax system, tax rates ______ as
income increases.

• Increase

5
A person who lives with you and receives support
from you is called a/an _________.

• Dependent

6
You must ____ a tax return to receive a refund of
taxes withheld unnecessarily.

• File

7
To itemize deductions, you must use the Long Form
______.

• 1040 (Schedule A)

8
Each ________ claimed by a taxpayer reduces total
tax liability.

• Exemption

9
Taxpayers should not itemize unless their
deductions exceed the ______ deduction.

• Standard

10
Taxes based on the ability to pay is called
__________.

• Progressive

11
______ taxes are based on a flat rate that does
not change according to income level.

• Proportional

12
You can not itemize deductions on Form _____.

• 1040 EZ

13
Use of a tax ______ does not absolve one from an
error on your tax return.

• Preparer

14
The sole function of the _____ is to collect
income taxes and to enforce tax laws.

• Internal Revenue Service
• (IRS)

15
The power to levy taxes rests with ______.

• Congress

16
Workers compensation and unemployment
compensation are _______.

• Taxable

17
Which of the following is not a taxable
incomeWages, Tips, Salaries, Alimony, Child
Support

• Child Support

18
By designating 3 to the Presidential Election
Campaign Fund, you do not increase your ______.

• Liability

19
In the U.S., responsibility for paying income
taxes rests with the ________.

• Individual

20
Tax ____ is a serious crime punishable by a fine
or imprisonment or both.

• Evasion

21
If you have many deductions, its a good idea to
______ instead of taking the standard deduction.

• Itemize

22
The largest source of government income in the
U.S. is _______

• Income Taxes

23
Which of the following people must sign a tax
return?The Tax PayerThe Tax Payers
SpouseThe Person Who Prepared the Return

• All of them

24
The income tax is an example of which type of
taxProgressiveProportionalRegressiveExcise

• Progressive

25
Sales tax is an example of which type of
tax?ProgressiveProportionalRegressiveExcise

• Regressive

26
Property tax is an example of which type of
tax?ProgressiveProportionalRegressiveExcise

• Proportional

27
As taxable income increase, income tax rates
_____.

• Decrease

28
The first income tax became necessary during what
war?

• War of 1812

29
You must file your income tax returns no later
than _____.

• April 15

30
An examination of tax returns by the IRS is
called an ______.

• Audit

31
Definitions
32
A person who can be claimed as an exemption by a
tax payer.

• Dependent

33
A type of income that must be claimed on a Form
1040.

• Alimony

34
Taxes that increase in proportion to income

• Progressive

35
A type of income received that is not taxable.

• Child Support

36
Taxes for which the rate remains constant,
regardless of the amount of income

• Proportional

37
Money collected by the government through taxes.

• Revenue

38
The type of tax that requires those who can least
afford it to pay the most in proportion to their
income.

• Regressive

39
Willful failure to file and pay taxes.

• Tax Evasion

40
An amount you may subtract from your income for
each person who depends on your income to live.

• Exemption

41
A person who can be claimed as an exemption by a
taxpayer

• Dependent

42
Income ranges where the more you make the higher
the tax rate you pay

• Tax Brackets

43
To list allowable expenses on your tax returns.

• Itemize

44
Good Luck on Your Test!