Tax Forms
An employee completes this form so an employer can determine how much federal income tax to withhold.
What is a W-4?
The total amount earned before taxes and other deductions are removed.
What is gross pay?
Under this tax structure, everyone pays the same percentage of income.
What is a proportional tax?
A taxpayer receives this when tax payments and refundable credits are greater than the final tax owed.
What is a tax refund?
Roads, schools, emergency services, and national defense are examples of these.
What are public services supported by taxes?
An employer provides this form after the year ends to report an employee’s wages and taxes withheld.
What is a W-2?
The amount the employee actually receives after deductions are removed.
What is net pay?
Under this structure, the percentage of income paid in taxes generally increases as income increases.
What is a progressive tax?
This occurs when the taxpayer’s final tax is greater than the payments and refundable credits already applied.
What is an amount owed?
National defense and immigration are primarily responsibilities of this level of government.
What is the federal government?
This form verifies a newly hired worker’s identity and authorization to work in the United States.
What is an I-9?
These two payroll taxes fund Social Security and Medicare.
What are FICA taxes?
This structure places a greater percentage burden on lower-income households.
What is a regressive tax?
This tax benefit reduces the amount of income that is subject to tax.
What is a tax deduction?
Driver’s licenses are associated with this level of government.
What is state government?
Banks and businesses may issue versions of this form to report interest, contract income, or other nonemployee income.
What is a 1099?
Health insurance and retirement contributions belong in this category because they are removed from pay but are not taxes.
What are non-tax deductions?
This is the tax rate applied to a taxpayer’s last or highest layer of taxable income.
What is the marginal tax rate?
This tax benefit directly reduces the amount of tax owed.
What is a tax credit?
Police protection, fire services, garbage collection, and zoning are commonly provided at this level.
What is local government?
This is the main federal form individuals use to report income and calculate their final income tax.
What is Form 1040?
This amount is sent to the government during the year as a prepayment toward a worker’s expected income tax.
What is income-tax withholding?
A worker enters a higher tax bracket after receiving a raise. This portion of the worker’s income is taxed at the higher rate.
What is only the income inside the higher bracket?
Why receiving a large refund does not mean the government is giving the taxpayer free money.
What is the taxpayer overpaid during the year?
Disaster response and major highways are this type of responsibility.
What is a shared responsibility?