Income & Paychecks
Money a person receives regularly from work or investments.
What is Income?
Money taken out of your paycheck.
What are Deductions?
Wage and tax statement provided by employers; reports an employee’s annual wages and amount of taxes withheld during the calendar year
What is a W-2?
Unmarried, divorced, or legally separated individuals.
What is Single?
A plan for how income is spent each month.
What is a Budget?
When someone spends money on shares of stock, property or other financial plans with the expectation the funds will grow and increase in value as the company does better or the property increases in value over time
What is Investing?
Single deduction based on a fixed amount
What is the Standard Deduction?
Employee’s take-home pay or the total amount left after payroll deductions are removed from the gross pay
What is Net Pay?
Federal payroll tax that funds Social Security.
What is FICA Social Security Tax?
Documents completed by employees for their employers which inform the employer about the correct amount to withhold from the employee’s pay in accordance with the federal income tax
What is a W-4?
Married couples who wish to file a joint tax return
What is Married Filing Jointly?
Money people save through a bank or investment plan
What is Savings?
Employer-provided retirement savings plan.
What is a 401(k)?
Payments employees receive for work.
What are Paychecks?
Total earnings before taxes and deductions.
What is Gross Pay?
Federal payroll tax that funds Medicare and Medicaid.
What is FICA Medicare?
official government forms that an individual or married couple submits to a federal, state or local agency
What are Income Tax Returns?
Married couples filing separate returns.
What is Married Filing Separately?
Money and income a person or household expends on goods and services
What is Spending?
Protecting yourself from financial risks now and later.
What is Financial Security?
Money earned before deductions over time.
What is Income?
This includes gross pay, net pay, and YTD income.
What is Earned Income?
Taxes taken from income by the federal government.
What are Federal Taxes?
Categories that determine tax rates, deductions, and eligibility.
What are Filing Statuses?
Status for someone whose spouse died within the past two years and has a dependent child.
What is Qualifying Widow(er) with Dependent Child?
Includes all individual and household financial decisions about personal and household budgets, savings, retirement planning and insurance decisions
What is Personal Finance?
payroll deductions which are used to pay for a company-enrolled insurance policy
What are Insurance Premiums?
Total system of managing money, saving, and spending.
What is Personal Finance?
Stands for year-to-date income and is a summary of an employee’s total gross income, deductions and net income since the start of the calendar year
What is YTD Income?
Payroll taxes issued by states, counties or municipalities and deducted to fund public services
What are State and Local Taxes?
Unmarried taxpayers who pay more than half the cost of keeping up a home for themselves and a qualifying person living in the same home
What is Head of Household?
A general category used to determine how taxes are filed.
What are Filing Statuses?
When someone gains an understanding of their financial situation to make the most of their assets in their day-to-day lives and in planning for the future
What is Personal Financial Management?
allows taxpayers to subtract specific expenses from their income
What is an Itemized Deduction?
The goal of having enough money to handle future needs.
What is Financial Security?
This combines saving, investing, budgeting, and planning for the future.
What is Personal Financial Management?