Tax Terms
When you file you choose either married or single
What is filing status
all citizens are expected to prepare and file income tax returns of their own accord without force
What is voluntary compliance?
Portion of income which is not subject to tax and can be used to reduce a tax bill
What is a standard deduction?
Payroll taxes that provide social security and medicare benefits
What is a FICA tax?
IRS stands for
What is Internal Revenue Services?
a profit from the sale of property or of an investment.
What is capital gains?
You must use this form if self employed.
What is a 1099 MISC form?
Type of tax deduction allows the taxpayer to list out all of his or her expenses for the year such as property tax, medical expenses, eligible charity donations, unreimbursed business expense
What is an itemized deduction?
A person who relies on the taxpayer for financial support
What is a dependent?
an amount that a government gives back to a taxpayer who has paid more taxes than were due
What is tax refund?
Range of incomes subject to a certain income tax rate
What is a tax bracket?
Statement of interest earned from your bank account?
What is a 1099 INT form?
The percentage you pay in taxes increases as your income increases
What is a progressive tax?
The other name for a proportional tax?
What is a flat tax?
A tax on a sale of merchandise or services, regressive tax
What is sales tax?
total income before accounting for deductions and taxes. Includes salary, wages, tips, capital gains, interests, and dividends.
What is adjusted income?
Employers must provide a copy of employees' W-2 forms by what date?
What is on or before January 31?
he tax as a percentage of income increases as income increases
What is a progressive tax?
Tax returns are due on this day
What is April 15?
The standard Internal Revenue Service (IRS) form that individuals use to file their annual income tax returns.
What is the 1040 tax form?
Portion of your paycheck that your employer sends directly to the government each pay period
What is a withholding?
When starting a new job, this form determines how much money will be withheld from your paycheck for taxes.
What is a W-4 form?
Amount which lowers a person’s tax liability by lowering taxable income
What is a tax deduction?
the tax as a percentage of income decreases as income increases
What is a regressive tax?
The form that reports an employee’s annual wages and the amount of taxes withheld form his or her paycheck?
What is a W-2 form?