Money Money!
Payroll Tax
Percentage of money withheld from your paycheck by your employer who then pays it the government for you. In the US, this is FICA.
Tax Brackets
Ranges of income taxed at different rates. Your tax bracket depends if you are married and filing your taxes together or jointly, married and filing separately, the head of the household, or if you are single.
Excise Taxes
Taxes that are put on specific goods, services, and activities such as coal, fuel, sports wagering, and indoor tanning.
W-9 Form
This form confirms a person’s name, address, and taxpayer identification number (TIN) for employment or income purposes.
FICA
Federal Insurance Contributions Act which includes payroll taxes for Medicare and Social Security.
Capital Gains Tax
A tax on the growth in the value of investments. Taxes are paid when the assets are sold.
1040 Form
What individual taxpayers use to file their taxes with the IRS. Helps individuals determine if they owe taxes or if they will get a tax refund.
I-9 Form
Verification of identity and legal authorization to work.
Progressive Tax System
People that make more money (or who have higher taxable incomes) pay more federal income taxes. People who have less taxable income, pay less federal income taxes.
Estate Taxes
Taxes that are paid on the inheritance of assets following the death of an individual. Not all states have estate taxes.
1099 Form
This is to report information on the income you receive outside of your typical salary, for example with contract work.
Social Security
An insurance program. Workers pay into the program for at least 10 years or more and can collect money once they turn 62. If they wait until age 70 to collect, they will receive more benefits.
Taxable Income
Determined by the amount of income remaining after deductions.
Property Taxes
Taxes paid on property owned.
W-2 Form
The document that your employer sends to you and the IRS at the end of the year that reports your wages and amount of taxes withheld from your paycheck.
Medicare
A federal health insurance program for Americans 65 years or older and some people with disabilities.
Deductions
Reductions to your income in terms of how it counts for taxes.
Sales Tax
Taxes on the sale of goods and services.
W-4 Form
Form that informs your employer of your tax situation and informs them how much tax to withhold from your paycheck based on your marital status and other deductions.