Tax System
The term for a tax system in which the tax rate gradually increases as the amount of taxable income goes up?
What is a progressive tax system?
A form, sent by employers in January, that says your total gross earnings from the prior year, as well as the amount of federal, state, and payroll taxes withheld.
What is a W-2?
The amount of you income that the employer sends directly to the federal, state or local government
What is withholding
What is the last day to file taxes (or request an extension)?
What is April 15th
An individual retirement account offered by a bank, that provides tax advantages for retirement savings.
IRA
Consumer tax levied upon luxury good jewelry, and vice which pose health risks like tobacco & alcohol. Sin tax
What is excise tax
A form you fill out when you start a job, which tells your employer how much to withhold based on the number of allowances you claim (for example, for dependents you are responsible for).
What is a W-4?
A type of tax paid on money earned from wages, salary, and/or tips.
What is income tax?
What is the month your employer must send you a Form W-2?
January
What does IRA stand for
Individual Retirement Account
A tax on imported goods from other countries
What is tariff
The form on which you actually file your taxes.
What is the 1040
An expense, such as a charitable contribution, that can be deducted from one's taxable income
What is a tax deduction
Governmental agency responsible for collecting federal taxes, issuing regulations, and enforcing tax laws
IRS
Money left over after paying taxes, and expenses
Disposable Income
Give one example of earned income and one example of unearned income.
Earned: Wages, salary, tips
Unearned: Gift Interest, Investment appreciation
This is sent to you in January by an employer who does not withhold taxes from your earnings
1099
An annual reports YOU send to the IRS summarizing total income, deductions, and the taxes withheld by your employer
Tax Return
Payments of cash from a corporation to its stockholders
dividends
Refers to an individual's income after taking taxes and other payroll deductions are taken out
Net Income
A tax applied uniformly on rich or poor, example sales tax. It is in opposition to a progressive tax,
What is regressive tax
This verifies you are a citizen of the USA
I-9
The three largest expenses of the federal government (include discretionary and non-discretionary spending).
What are Social Security, Medicare/Medicare, and Defense?
A retirement savings plan that an employer automatically takes out of your paycheck before income taxes )
401K
The total amount of income from wages before any payroll deductions
Gross Income