WHAT ARE TAXES
Money you are required to pay to the government.
Taxes
Tax you pay when you buy clothes or shoes.
Sales Tax
The money the government uses to decide how much tax you owe.
What is taxable income?
A tax where everyone pays the same percentage.
What is a flat tax?
Your total pay before anything is taken out.
Gross Pay
One reason the government collects taxes, like fixing roads or paying police.
What is funding public services?
Tax paid if you own a house or land.
What is property tax?
True or False: Taxable income is always your full paycheck.
FALSE
The type of tax system used for income tax.
What is a progressive tax system?
The money you actually take home.
What is net pay?
The type of tax this chapter focuses on.
What is income tax?
Tax paid when you earn money from a job.
What is income tax?
The form you file to report income to the IRS.
What is a tax return?
True or False: Being in a higher tax bracket means all your money is taxed more.
FALSE
Federal income tax, Social Security, and Medicare are examples of this.
What are withholdings?
The government group that collects federal income taxes.
The IRS
Which tax applies when you buy something at a store.
What is Sales Tax?
Your family situation that affects how much tax you owe.
What is filing status?
The system where income is split into parts and taxed differently.
What are tax brackets?
The main tax form used in the U.S.
What is Form 1040?
Form you get by the end of January showing income and taxes taken out.
What is a W-2?
Form used for side jobs or freelance work where taxes are not taken out.
What is a 1099?
People are happy when they get tax returns. Why should they not be?
Because they overpaid in the first place
These turn tax brackets into equations with base amounts and percentages.
What are tax schedules?
The amount of tax you owe.
What is tax liability?