Lesson 10.1

Key Terms

Gross Income: the amount you earn before taxes and other payroll deductions
Net Income: what a person earns after payroll taxes and other deductions are taken out; often referred to as take-home pay​​​​​​​
Withholdings: the portion of an employee’s pay held back to cover taxes and other deductions​​​​​​​
Fiscal Year: a one-year period that governments or companies use for financial reporting​​​​​​​
Deficit Spending: spending more than you earn; an economic policy in which the government spends public funds raised by borrowing rather than by taxation​​​​​​​
National Debt: the total amount of debt a country owes to companies and other countries as a result of deficit spending

Lesson 10.2

Key Terms

Earned Income: any income (wages/salary) that is generated by the work someone performs
Wage: money paid by the hour and for an agreed number of hours per week; especially for unskilled or manual labor​​​​​​​
Minimum Wage: the smallest amount that employers can legally pay their employees per hour of work​​​​​​​
Salary: a fixed annual amount earned by an employee, typically paid weekly, biweekly, or monthly​​​​​​​
Passive Income: money earned on a regular basis with little or no effort required to maintain it​​​​​​​
Portfolio Income: income from an investment sold at a higher price than you paid for it ​​​​​​​
Paper Asset: a representation (on paper) of stocks, bonds, currencies, mutual funds, etc.

Lesson 10.3

Key Terms

Income Tax: tax paid out by anyone who earns an income
Tax Bracket: the income ranges in which tax rates apply​​​​​​​
Tax Liability: the total tax a person or business has to pay​​​​​​​
Tax Return: a report that a taxpayer has to submit annually to the government and is used to determine a person‘s tax liability
Tax Day: the annual deadline for filing your income taxes; usually falls on April 15

Lesson 10.4

Key Terms

Standard Deduction: the dollar amount people can subtract from their income before the tax is calculated
Tax Schedule: a special tax form to report certain types of income or deductions​​​​​​​
Itemized Deductions: a list of all eligible expenses that can be claimed to decrease taxable income​​​​​​​
Tax Credit: an amount of money a taxpayer can subtract from the taxes they owe ​​​​​​​
Audit: an official IRS inspection of a tax return to make sure the income and deductions are accurate

Lesson 10.5

Key Terms

Wealth Tax: a tax based on the market value of owned assets
Property Tax: taxes paid by anyone who owns property, such as land, a home, or commercial real estate ​​​​​​​
Capital Gains Tax:  a tax on the positive difference between the sale price and the value of a gift when it was inherited​​​​​​​
Inheritance Tax: a state tax on an asset an individual received from someone who has passed away​​​​​​​
Estate Tax: a tax that‘s imposed on a property owner’s right to transfer the property to others after their death ​​​​​​​
Gift Tax: a tax on any asset that exceeds the yearly amount you can transfer to another person without compensation of equal value

Lesson 10.6

Key Terms

Consumption Tax: a tax on the purchase of goods or services in the form of sales tax, excise tax, and other special taxes
Sales Tax: a tax on goods and services that goes to a state or local government ​​​​​​​
Excise Tax: a tax on certain goods that aren‘t typically considered a necessity; sometimes called a luxury tax