1
The amount of money needed to sustain a certain level of living, including basic expenses such as housing, food, taxes, and healthcare.
Cost of Living
The portion of an employee's wages that is not included in his or her paycheck because it goes directly to federal, state and local tax authorities.
Witholding
A statement of an individual's annual wages and taxes provided by an employer that must be included with the employee's federal, state, and city income tax returns.
W2
A direct federal and state tax on money that you earn.
Income Tax
A set of forms that taxpayers use to calculate their tax obligation
Tax Return
A government-run insurance program that provides healthcare assistance to needy Americans
Medicaid
A document attached to every paycheck that details your earnings and the amount withheld for taxes, health insurance, retirement funds, etc.
Paycheck stub
The quick tax form most often used prior to 2019.
1040 EZ
This is your take home pay
Net Pay
A form that you fill out to provide the information your employer needs to determine the proper amount to withhold from your paycheck
W-4
Someone you financially support who can be "claimed" on a tax return.
Dependent
FICA stands for
Federal Insurance Contributions Act
Compensation received by employees for services performed.
Wages
The amount a person earns BEFORE deductions are taken out.
Gross Pay
The percentage at which taxes are paid on each dollar of income.
Tax Rate
An amount of money you can subtract from your taxable income, just for having dependents.
Exemption
Money demanded by a government to support its services and facilities
Taxes
When the government has more expenses than revenue.
Deficit
YTD stands for
Year To Date
The income figure used to determine how much income tax you owe.
Taxable Income
IRS stands for
Internal Revenue Service
A tax based on the cost of the item purchased and collected directly from the buyer
Sales Tax
This allows tax refunds to be deposited directly to the taxpayer's bank account.
Direct Deposit
An inspection of a filer's tax return by the IRS
Audit
A program that provides monthly benefits to almost 60 million Americans, including retirees, military families, surviving families of deceased workers, and disabled individuals.
Social Security