Tax Systems
A tax imposing the same percentage rate of taxation on everyone, regardless of income.
What is a proportional tax?
A form that helps the employer determine how much to withhold from an employee's paycheck.
What is the W-4 Form?
the money you earn before taxes and other deductions are taken out?
What is Gross Income (or pay)
the Federal Agency that enforces tax laws and prosecutes people who try to not pay taxes
What is the Internal Revenue Service (IRS)?
Tax Day
When is April 15th?
A tax that imposes a higher percentage rate of taxation on persons with high incomes than on those with low incomes.
What is a Progressive Tax
A form that you will receive before tax season that reports your wages and taxes withheld.
What is the W-2 Form?
The amount you have after taxes and deductions.
What is Net Pay / Net Income?
A person who relies on someone else for support (food, clothing, shelter, etc.)
What is a Dependent?
the standard deduction for 2024?
What is $14,600?
A tax imposing a higher percentage rate of taxation on low incomes than on high incomes.
What is a Regressive Tax
An option for you to "file" as on your W-4 Form?
What are Single, Married Filing Separately, Married Filing Jointly, Qualified Widow, Head of Household?
YTD is the achronym for this amount
What is Year-To-Date?
A dollar for dollar amount that lowers your tax liability (what you owe in taxes)
What is a tax credit?
The amount of money you have to exceed in unearned income before you have to file?
What is $1,300?
What is the most common example of a progressive tax?
What is the Federal Income Tax
you "claim" these on your W-4 that would result in tax deductions
What are Dependents?
voluntary deduction that can come out of your paycheck
What are retirement, insurance, miscellaneous benefits (DCA, FSA)?
If this exceeds the amount of income taxes owed, the extra refund is lost.
What is a non-refundable tax credit?
the two age maximums in which you can no longer be claimed as a dependent by a parent?
What is 19 or 24 while still in school (and still dependent upon parents for 50% of needs)?
What is the most common example of a regressive tax?
What is the Sales Tax?
the form you will use to file your annual income tax return
What is Form 1040?
two FICA taxes that are taken out of your paycheck
What are Medicare & Social Security?
the sum of your deductions that will hopefully exceed $14,600 (in 2024)
What are itemized deductions?
If you had no tax liability the year before and do not expect to make more than the standard deduction you should claim this.
What is an exemption?