PAY STUBS & PAYROLL TAXES
This is your total earnings before any deductions are taken out.
What is gross pay?
This form reports wages earned from an employer.
What is a W-2?
This type of tax is taken from your paycheck to fund national programs.
What is income tax?
This is someone who can be claimed on another person’s tax return.
What is a dependent?
___ provides benefits for people who are retired, disabled, or survivors of deceased workers.
What is social security?
This mandatory payroll tax funds Social Security and Medicare.
What is FICA?
This is the standard federal income tax form individuals file each year.
What is Form 1040?
This tax is paid when you purchase goods and services.
What is sales tax?
True or False: If you are claimed as a dependent, you never have to file taxes.
What is False?
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This is your take-home pay after all taxes and deductions are subtracted.
What is net pay?
This form tells your employer how much federal income tax to withhold.
What is a W-4?
Social Security and Medicare are examples of this type of government spending that is required by law.
What is mandatory spending?
One reason someone might file a tax return even if not legally required.
To receive a refund.
True or False: Someone in the 24% tax bracket pays 24% on all of their income.
What is False?
These deductions reduce your taxable income before taxes are calculated (example: retirement contributions).
What are pre-tax deductions?
This form is used to report various types of income other than wages, salaries, and tips.
What is a 1099?
National defense, education, and transportation are examples of this type of spending that Congress approves annually.
What is discretionary spending?
_____ your taxes throughout the year means you will likely receive a refund.
What is overpaying?
In this tax system, higher incomes are taxed at higher rates.
What is a progressive tax system?