An important aspect of federal income tax preparation for individuals is understanding the key terms associated with tax rate structures, marginal versus average tax rates, the income tax formula, and the components of a basic Form 1040. This assignment will allow you to explore several terms and define them to further your understanding.
Directions:
First, choose five terms from the list:
Additional income
Adjusted gross income
Average tax rate
Dependents
Earned income credit
Filing status
Form 1040
Health care tax
Income tax
Income tax formula
Interest
IRS
Itemized deductions
Marginal tax rate
Other income
Progressive rate structure
Proportional rate structure
Recovery rebate credit
Regressive rate structure
Standard deduction
Tax authority
Tax due to IRS
Tax due with return
Tax penalties
Tax refund
Taxable income
Taxable interest
Total tax
Unemployment compensation
Wages, salaries, and tips
Then, using the Module One Assignment Template located in the What to Submit section, define the five terms chosen.
