Vocabulary
Interest income, winnings, social security benefits.
What is Unearned Income
A government agency that collects federal income taxes, issues regulations, and enforces tax laws written by the United States Congress
What is the Internal Revenue Service (IRS)?
Money that employers withhold from employees’ paychecks.
What are withholdings?
Form that helps an employer determine how much to withhold from an employee’s paycheck
What is a W-4
Due date of taxes
What is April 15?
Earnings after taxes are withheld (take home pay)
What is Net Pay?
A tax imposed on both employees and employers to fund Social Security and Medicare.
What is FICA (Federal Insurance Contributions Act)
No taxes are taken out of gross pay by your employer.
What is being Exempt?
A form you receive stating all types of interest income you’ve received.
What is a 1099 INT?
Taxpayers pay a late fee for filing their taxes after the deadline.
What is a Late Penalty?
Amount of money a person earns before deductions.
What is Gross Pay?
A tax based on the amount of taxable income that people receive annually.
What is Personal Income Tax?
The percentage deducted from an individual’s paycheck to assist in funding agencies within the state.
What is State Withholding Tax?
The lower the number, the higher the amount of taxes withheld.
What is Claiming Zero (on W-4)?
Tax on wages, salaries and self-employed earnings.
What is Income Tax?
Roads, Schools, Libraries, Police, Parks, Federal Buildings, President and Politician Salary and Government Services are examples of...
What are some of the Services and Benefits of taxes?
Any money you receive.
What is Income?
The amount required by law for employers to withhold from earned wages to pay taxes.
What is Federal Withholding Tax?
It states the amount of money earned and taxes paid throughout the previous year.
What is a W-2 form?
Provides benefits for employees and their dependents: retirement benefits, benefits for the dependents of retired workers, benefits for the disabled and their dependents.
What is Social Security? Also called FICA (Federal Insurance Contributions Act),
Compulsory charges imposed on citizens by local, state, and federal governments.
What are taxes?
Includes national defense, street lights, roads, and highways. Public services include welfare programs, law enforcement, and education.
What are Public Goods and Services?
Deductions used to provide medical benefits for certain individuals when they reach age 65.
What is Medicare?
The information gathered in this form is for employers to verify the eligibility of individuals form employment thereby avoiding hiring undocumented workers or others who are not eligible to work in the United States.
What is an I-9 (Employment Eligibility Verification)?
The income of a government from all sources appropriated for the payment of the public expenses
What is Tax Revenue?