Types of forms
The standard Internal Revenue Service (IRS) form that individuals can use to file their annual income tax returns
What is 1040?
A document attached to every paycheck that details your earnings and the amount withheld for taxes, health insurance, retirement funds, etc.
What is Paycheck Stub?
An inspection of a filer's tax return by the IRS
What is Audit?
An amount that can be subtracted from person's tax liability that lowers their taxable income
What is Tax Deduction?
Taxes paid by employees to federal and state government through a direct deduction from their paycheck
What is Income Tax?
A form that details all "non-employee" compensation, including for specific jobs like freelancers or contractors
What is 1099?
Any income (wages/salary) that is generated by working
What is Earned Income?
Someone you financially support who can be "claimed" on a tax return to reduce your taxable income and lower your taxes
What is Dependent?
An annual report to the IRS summarizing total income, deductions, and the taxes withheld by employers
What is a Tax Return?
A federal program that provides monthly benefits to millions of Americans, including retirees, military families, surviving families of deceased workers, and disabled individuals
What is Social Security?
A form that an employer must send to an employee and the IRS at the end of the year to report the employee's annual wages and taxes withheld from their paycheck
What is W-2?
Income received from sources other than employment
What is Unearned Income?
A category that defines the type of tax return an individual will use, primarily based on marital status; it also determines the size of your tax brackets and how much of your income is taxed at each rate
What is Filing Status?
An amount subtracted directly from the tax owed
What is Tax Credit?
The amount of income that is used to calculate an individual's or a company's income tax due
What is Taxable Income?
A form completed by an employee to indicate his or her tax situation (exemptions, marital status, etc.) to the employer, who then withholds the corresponding amount of taxes from each paycheck
What is W-4?
Federal and state taxes that all employers must pay, based on a percentage of the employee's salary, toward social services such as Social Security and Medicare
What is Payroll Tax?
A standardized dollar amount that reduces your taxable income, specifically for individuals who do not receive additional benefit by itemizing their deductions into medical expenses, donations, etc.
What is Standard Deduction?
The percentage at which taxes are paid on each dollar of income
What is Tax Rate?
The set amount of money, per dependent, you can subtract from your taxable income
What is Exemption?
Form used by an employer to verify an employee's identity and to establish that the worker is eligible to accept employment in the United States
What is I-9?
A federal law that requires an employer to withhold taxes from the wages they pay their employees; the funds go toward Social Security and Medicare
What is Federal Insurance Contributions Act (FICA)?
An amount that a government gives back to a taxpayer who has paid more taxes than were due
What is Tax Refund?
A range of income amounts that are taxed at a particular rate
What is Tax Bracket?
A tax paid on purchases of a specific good, like gasoline or cigarettes
What is Excise Tax?