Show:
Mandatory Expenses
Types of Taxes
What is Taxed?
Paying Income Taxes
Paying Income Taxes 2
100

A federal program that pays certain health care expenses for older citizens and others with disabilities

What is Medicare

100

Taxes paid directly to the government by the taxpayer

Direct tax

100
Tax levied on money you receive from income

Income tax

100

The form is known as an Employee's Withholding Allowance Certificate; you fill it out when you start a job

What is a Form W-4

100

This allows you to file your income tax returns online

Electronic filing or e-filing

200

A government program that pays certain health care costs for eligible low-income individuals and families

What is Medicaid

200

Tax imposed on one person or entity but shifted to or paid by another

Indirect tax


200

Tax levied by state and local governments on purchases of goods and services

Purchase tax

200
Each year, by the end of January, you receive this from your employer; it is called a Wage and Tax Statement and is usually mailed to your home

What is a Form W-2

200

This is a detailed examination of your tax returns by the IRS

Tax audit

300

A federal program that provides income when earnings are reduced or stopped because of retirement, serious illness, injury or death

What is Social Security

300

This is tax that requires those with higher incomes to pay a higher tax rate

Progressive tax

300
Tax levied by federal and state governments on the sale and transfer of certain items
Excise tax
300
This is an expense that can be subtracted from taxable income

Tax deduction

300
When considering new tax proposals and policies , 3 things to consider are

effectiveness

Fairness

Impact

400

A government payment or benefit promised by law to eligible citizens

What is an entitlement

400

This is a tax where those with lower incomes pay a higher tax

Regressive tax

400

Tax levied on property you own

Property tax

400

This is a tax benefit that reduces the amount of income that is taxed

Exemption

400

Workers and employers split FICA taxes. Each pays what percentage

7.65% (6.2 for SS and 1.45 for Medicare)

500

This is a tax where everyone pays the same tax rate regardless of income

Proportional Tax
500

Tax levied on assets

Wealth tax

500

This is an amount you can subtract from the taxes you owe, if you are eligible; it is a greater advantage than an exemption or tax deduction subtracted from taxable income.

Tax credit

500

Social Security number serves what 2 main purposes

keep a record of your covered earnings

taxpayer identification number on all tax returns and IRS forms