Paystub
This is your take-home pay after taxes are taken out.
What is net pay?
You can find this number by subtracting the year's standard deduction from your gross income.
What is taxable income?
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 a W-2?
Someone you financially support who can be "claimed" on a tax return to reduce your taxable income and lower your taxes.
What is a dependent?
Money you earn, but you didn't work for it.
What is unearned income?
You are this kind of employee if you work 30-40 hours a week.
What is a full-time employee?
A range of income amounts that are taxed at a particular rate.
What are Tax Brackets?
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 a W-4?
The term for the set amount of money, per dependent, you can subtract from your taxable income.
What are exemptions?
The month that your employer sends your W-2.
This acronym refers to the amount of money you've made from Jan 1st to the current pay period.
What is YTD? Year-To-Date
The percentage at which taxes are paid on each dollar of income.
What is Tax Rate?
You can deduct $2,000 on your W-4 when you have one.
What is a child?
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.
A government-run insurance program that provides healthcare assistance to elderly and disabled Americans.
What is Medicare?
These are calculated by multiplying your hourly rate by the number of hours you worked.
What is gross pay?
The tax bracket that your highest dollar of income falls into, and therefore the highest tax rate you pay.
What is Marginal Tax Rate?
These numbers are used to report a person's wages to the government and to determine a person's eligibility for benefits after they turn 62.
What is a Social Security Number?
You must file a return if you are under the age of 65, and your earned income was more than this number.
What is $12,400?
Taxes paid by employees to federal and state government through a direct deduction from their paycheck.
What is income tax?
These deductions consist of Social Security and Medicare.
What is FICA?
The actual rate you pay on your taxes, as a percentage of your overall income.
What is Effective Tax Rate?
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?
What is $500?
A document attached to every paycheck that details your earnings and the amount withheld for taxes, health insurance, retirement funds, etc.
What is a paycheck stub?