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Chapter 3 Vocabulary

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