tax forms
Employees fill out this form when they are starting a new job to find out how much federal income tax to withhold from their paycheck
What is the W-4 form
This is the traditional standard annual deadline for taxpayers to file their federal tax returns
What is April 15th
This mandatory payroll deduction is the money taken out to fund the federal government's general operations and public services
Filing an extension gives a taxpayer more time to file their paperwork, but it does not give them more time to do this
WHat is pay their taxes
This term refers to the total amount of money you earn before any taxes or deductions are taken out.
What is gross income
Employers send this form to employees by 1/31 on their total earnings and taxes withheld from the previous year
What is the W-2 form
This is the deadline for employers to send W-2 forms to their employees
What is January 31st
This federal program, funded by payroll deductions, provides retirement, disability, and survivor benefits to eligible workers
WHat is social security
This is the person (such as a child or elderly relative) whom a taxpayer supports financially and can claim on their tax return to qualify for certain tax benefits.
What is a dependent
This is a fixed amount that reduces your taxable income, which any taxpayer can claim without having to list specific expenses.
What is standard deduction
This form is the standard primary form used by US taxpayers to file annual income tax returns
What is form 1040
If a taxpayer requests a standard automatic filing extension, this becomes their new deadline to submit their tax return
What is October 15th
This acronym stands for the federal law requiring deductions from your paycheck to fund Social Security and Medicare
What is FICA (federal insurance contributions act)
Taxpayers who owe less than $1,250 in income tax, or meet specific income and age thresholds, might find themselves in this status where no federal income tax is withheld at all
WHat is being exempt
Unlike deductions which reduce taxable income, this type of incentive reduces your actual tax liability dollar-for-dollar.
What is a tax credit
If you work as an independent contractor or freelancer and earn more than $600 from a client, you will recieve this specific variation of the 1099 form
What is the 1099-NEC (nonemployee compensation)
Self employed people don't pay once a year; usually they make estimated tax payments this many times per year
What is 4 (quarterly)
Deductions for traditional 401(k) plans or health insurance premiums are often referred to by this term because they are taken out before taxes are calculated
What are pre tax deductions
The US uses this type of tax system, where the tax rate increases as a taxpayer's taxable income increases.
what is progressive tax system (marginal tax brackets)
This term describes a tax system (like the U.S. federal income tax) where the tax rate increases as the taxpayer's taxable income increases.
What is progressive tax
This form is used by US citizens and residents to determine their eligibility for employment in the US
What is an I-9?
The tax year typically runs from Jan 1 to Dec 31. However, if a business uses a 12 month period that ends on any other month, it is known by this term
This is the current standard employee withholding percentage rate strictly for the Social Security portion of FICA
What is 6,2%
This is the name of the official penalty charged by the IRS if a taxpayer owes money and misses the April deadline without filing an extension, which is usually much higher than the failure-to-pay penalty.
What is failure to file penalty
This is the specific percentage of tax paid on the very next dollar of income earned, which corresponds to your highest tax bracket.
What is the marginal tax rate