taxes – Flashcard

payroll taxes
based on employee total earnings and paid to the government by you and your employer
income taxes
paid to the government based on your income and your financial and family situation
Federal Insurance Contributions Act (FICA)
the law that requires workers to contribute to Social Security and Medicare
money your employer deducts from your paycheck
gross income
the amount you earn before taxes are withheld
net income
the amount you receive after withholdings are subtracted
Form W-4
A form that you fill out to provide the information your employer needs to determine the proper amount to withhold from your paycheck
Internal Revenue Service (IRS)
the federal executive agency that collects income taxes
withholding allowance
a number used to determine the amount of income tax withheld from your pay
tax return
tax return
a set of forms that taxpayers use to calculate their tax obligation
Form W-2
a summary of your earnings and withholdings for the year for one employer
Form 1099-INT
a statement of the interest your bank paid on your savings for the year
Form 1040EZ
the simplest type of tax return
a person you support financially, such as a child
tax deduction
an expense you can legally subtract from your income when figuring your taxes
Social Security Number
a unique code used by the government throughout your life to identify you as a taxpayer and keep track of your earnings and tax records
taxable income
the income figure used to determine how much income tax you owe
sales tax
based on the dollar value of a good or service being sold
property tax
levied annually on the value of what is owned; may be real or personal
excise tax
levied on the production or sale of a particular good or service,examples gasoline and other fuels, and taxes on tobacco and alcohol
estate tax
paid on the property that is received by those legally entitled to inherit
gift tax
gift tax
business or license tax
fee paid for a license, permit, or stamp to operate certain kinds of businesses
customs, duties, tariffs
levied on imported goods.
public goods
goods and services that benefit all citizens
tax credit
an amount you can legally subtract from your tax owed
Tax deffered
The money that is not taxed until withdrawn from an account

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