Category 1
taxes paid by anyone who owns property, such as land, a home, or commercial real estate
What is property tax
The amount of money you earn before any payroll deductions
What is gross pay
an official IRS inspection of a tax return to make sure the income and deductions are accurate
What is audit
any income (wages/salary) that is generated by the work someone performs
What is earned income
An employee’s take‐home pay; net pay is calculated by gross pay with deductions subtracted
What is net pay
A form prepared by an employer reporting an employee’s annual wages and the amount of taxes
What is W-2 form
the dollar amount people can subtract from their income before the tax is calculated
What is Standard Deduction
All of the income received in a year
What is gross income
the total amount of debt a country owes to companies and other countries as a result of deficit spending
What is National Debt
a list of all eligible expenses that can be claimed to decrease taxable income
What is Itemized Deductions
a report that a taxpayer has to submit annually to the government and is used to determine a person's tax liability
What is tax return
Tax on the net income of an individual
What is income tax
the total tax a person or business has to pay
What is tax liability
A form specifying the number of allowances in the Employee’s Withholding Allowance Certificate
What is W-4 form
Tax deducted from an individual’s paycheck, such as for Social Security and Medicare
What is payroll tax
The amount of money that tax calculations are based on
What is taxable income
A reduction of taxes paid on gross income
What is tax deduction
Tax on income paid by both the employee and the employer to fund the Social Security system
What is Social Security tax
Tax on income used to pay for the Medicare (health) program provided to individuals over the age of 65 or individuals with a disability
What is Medicare tax
An employment eligibility verification form filled out by both an employer and an employee
What is I-9 form
an employer‐sponsored retirement plan, sometimes with matching funds
What is 401k
A federal tax used to fund the public service programs Social Security and Medicare
What is Federal Insurance Contributions Act (FICA)
A simple income tax form that can be used by anyone who has an income of less than $100,000 and is not claiming dependents
What is 1040-EZ
Tax deducted from an individual’s paycheck, such as for Social Security and Medicare
What is pay stub
The amount that will be withheld from each paycheck
What is withholding allowance