7. Tax-planning concepts Important concepts to help you manage your taxes successfully include understanding how taxes are calculated; identifying your marginal tax rate; using appropriate strategies to avoid overpaying income taxes; and knowing what records to keep. Identify the term that best applies to each of the following concepts or definitions. Concept or Definition The proportion of total income paid in income taxes All income in the form of money, goods, services, and/or property Tax-deductible expenses A tax rate that increases as taxable income increases Deliberately and willfully hiding income from the IRS, falsely claiming deductions, or otherwise cheating the government out of taxes owed; it is illegal Term