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Chapter 3 Vocabulary

Across
A stated amount that you may subtract from adjusted gross income
Money paid to support a former spouse
Money paid to a former spouse for support of dependent children
Also known as "flat tax", a tax for which the rate stays the same regardless of one's income
Adjustments that reduce income that is subject to tax
A system where all citizens prepare and file tax returns on their own
Takes a smaller share of one's income as the amount of income grows
Refers to money you earned from working
Refers to money you received from passive activity (other than working)
Money, stock, or other property that corporations pay to stockholders in return for their investmnt
Describes your tax-filing group, based on marital status
Income on which you will pay tax
Down
Expenses you can subtract from adjusted gross income to determine your taxable income
A payment imposed on a taxpayer by a government unit
Takes a larger share of one's income as the amount of income grows
Examination of income tax returns
Taxpayer receives a letter requesting proof of items reported or deducted
Available to those who know they will not earn enough in one year to owe income tax
Includes all taxable interest from banks, savings, loan associations, etc.
Added to earnings when you receive a taxable benefit
A reduction of taxes owed
Incoming taxes treated as income by the government
Agency of the U.S. Treasury, collects income taxes and enforces tax laws