Vocab Row 1
Document showing details of your paycheck, including deductions and earnings
Paystub
Money returned by the government when you've overpaid taxes
Tax refund
Document filed with the government reporting income and taxes owed
Tax return
Amount that directly reduces the tax owed, often based on specific criteria
Tax credit
Illegal act of not paying taxes owed
Tax evasion
Money earned from sources like wages, salaries, and bonuses
Earned income
Additional charge imposed for failing to pay taxes on time
Tax penalty
Date by which taxes must be filed and paid to avoid penalties
Tax deadline
Partial payment of taxes due, spread over a period
Tax installment
Amount that reduces taxable income, lowering the amount of tax owed
Tax deduction
Income that is subject to taxation after deductions and exemptions
Taxable income
Transaction that triggers a tax liability
Taxable event
Person who relies on someone else for financial support
Dependent
Form used to file your annual income tax return
1040 form
Results of actions that impact your taxes, such as deductions or credits
Tax consequences
Choosing not to have income taxes withheld from your paycheck
Exempt (on W-4 form)
Form used to let your employer know how much to withhold from your paycheck
W-4 form
Legally minimizing tax liability through permissible means
Tax avoidance
Form that shows how much you earned and how much was withheld from your paychecks
W-2 form
Amount of tax that an individual or entity is legally obligated to pay
Tax liability