I am a Super Star
A tax paid on money that you earn as an individual or as an employee for doing work
Income Tax
Money you get back at the end of the year if you have paid more than you owe in taxes.
Tax Refund
What do Federal Taxes pay for
Governmental programs like national defense, welfare, health, education, unemployment insurance, NASA, Environmental Protection, Veterans, disaster relief, school lunch programs, Welfare
Represents money that an employer deducts from paycheck to pay all or part of employee's taxes
Withholding
Federal health insurance program for people who are 65 or older
Medicare
Forms of pay other than salary or wages like (insurance or vacation pay)
Benefits
One who works for, an employer but does not receive benefits from the employer.
Independent Contractor, or Freelancer
When are your income taxes (1040 form) due to the IRS?
April 15th
Amount of income left after taxes and deductions have been taken out.
Net Income
Give an example of what State Tax pay for
schools, highways, parks, libraries, police, fire departments, public transportation, health department.
What does the IRS stand for
Internal Revenue Service
What is FICA?
Federal Insurance Contributions Act is a mandatory paycheck deduction (Social Security & Medicare).
The total amount of an employee's earnings before deductions are taken out
Gross Pay
Fixed-rate of pay for a year; considered a professional working 40 hours a week
Salary
The lowest price that an employer can pay a worker for an hour of labor ($12 in Virginia)
Minimum wage
The U.S. has a progressive tax system, what does that mean?
The more you make, the more you pay in taxes
Money collected by the federal government to provide financial benefits needed in retirement and for the disabled.
Social Security Tax
A percentage of the cost of what you’re buying that is added to the price
Sales Taxes
What happen if you don't pay your share of taxes
penalties and or prison
When do you start paying taxes
When you make MORE than the minimum income requirement
This form is used to prove citizenship.
I-9
Provided by an employer in January; reports the taxable income a worker received during the year
W-2
A federal tax form filled out by an EMPLOYEE to indicate the amount that should be withheld from his/her paycheck for taxes.
W-4
The (IRS) form that individuals use to file their annual income tax returns.
1040 Form
What is the difference between Gross and Net Income
Income before withholding and income afterwards