Key Terms
spending more than you earn; an economic policy in which the government spends public funds raised by borrowing rather than by taxation
Starting a(n) _______ Business to avoid paying certain taxes is tax fraud
All Cash
Taxes by the State Governments are used for these purposes (any 1 of 3)
State health care programs, K-12 public education, Public transportation
This form is used to determine how much tax is withheld from your paycheck
W-4
The fastest growing Federal expense
An official IRS inspection of the tax return to make sure the income and deductions are accurate
Audit
Filing a(n) ______ with the IRS is one of those things most people dread but have to do
Annual Tax Return
Withholdings do this
Take money out of an employees paycheck to cover tax deductions
The main form most people use to list income, expenses, and take the standard deduction,
Form 1040
It is important to stay updated on these so that you aren't surprised, or file your taxes wrong.
Local Tax Rates
The total tax a person or business has to pay
Tax Liability
The two types of income tax
Federal and State Income Tax
The FICA uses taxes to fund these
A special tax form to report certain types of income or deductions
Tax Schedule form
The date commonly referred to as Tax Day
April 15
Itemized Deductions
a list of all eligible expenses that can be claimed to decrease taxable income
These two things are certain in life:
Death and Taxes
You can pay this person to help do your taxes
This is a document that you’ll fill out when you start a new job, and it will determine how much money you’ll be paying in taxes every payday.
Form W-2
The IRS' real name
Internal Revenue Service
A tax on the positive difference between the sale price and the value of a gift when it was inherited
Capital Gains Tax
W-2 Form
Property Tax
This form reports income from self-employment, freelance work, investment, or other non-employee sources
Form 1099
The percent of American tax dollars that are used for fighting National Debt
8%