Key Terms
All of the income an individual receives in a year
What is gross income?
What is Gross Income?
All of the income an individual receives in a year.
Tax applied on the sale of goods and services, usually calculated as a percentage of the purchase price and collected by the seller
What is sales tax?
What is a Pay Stub?
A pay stub is an attachment to your paycheck that shows the amount earned and details the payroll deductions.
An employment eligibility verification form
What is Form I-9?
Tax deducted from an individual’s paycheck based on their net income
What is Income Tax?
What is Cash Flow?
The inflow and outflow of cash.
Tax on income paid by both the employee and the employer to fund the social security system
What is social security tax?
What is Payroll Deduction
Amounts of money taken out of your pay taxes.
An important IRS form used to show your income earned and taxes paid over the year
What is form 1040?
Once taxes and other payroll deductions are subtracted from your pay
What is net pay?
Taxable income is?
The amount of money that your tax calculations are based on.
Tax applied to personal property such as a house or automobile
What is property tax?
What is Standard Deduction?
A fixed reduction amount.
Reports an employee’s annual wages and the amount of taxes withheld from paychecks
What is form W-2?
A negative cash flow
What is deficit?
What is Adjusted Gross Income?
Calculations by taking your total income and subtracting the adjustments
What is Payroll Tax?
Tax deducted form an individual’s paycheck, such as for social security and medicare.
What is Tax Deduction?
A reduction of taxes paid on gross income.
Employee’s withholding certificate
What is form W-4?
An employer-sponsored retirement plan
What is the 401(k)?
What is Surplus?
positive cash flow.
What is Tax Credit?
Money that can be subtracted from taxes owed.
What is Itemized Deduction?
To list deductions individually.
An important IRS form used to show your income earned and taxes paid over the year
What is form 1099?