Taxes
Taxes paid by employees to federal and state governments. Collected or withheld from one's paycheck.
Income Tax
Your employer automatically deposits your paycheck into your account.
Direct Deposit
Explain the 50-20-30 saving strategy.
50% - Necessities
20% - Savings/Debt
30% - Flexible Spending/Wants
Tax-Prep Software
File by Paper/Mail
Tax Professional
One of the official documents that U.S. taxpayers use to file their annual income tax return.
1040
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
A charge you receive from your bank when you spend more money than you have available in your bank account
Overdraft Fee
Interest earned on both the principal amount and any interest already earned.
Compound Interest
A business that cashes checks, giving the customer cash in exchange for a fee for the service.
Check Cashing Establishment
Tells employers how much tax to withhold from an employee's paycheck.
W-4
Spending by the federal government determined by legislative action. In other words, spending approved through votes by elected officials (i.e. Congress).
Discretionary Spending
An online process that allows you to send money directly from your checking account to a friend via email or cell phone.
Person to Person Payment
The rate at which the price of goods increases and consumer purchasing power decreases over time
Inflation
Someone you financially support who can be "claimed" on a tax return to reduce your taxable income and lower your taxes. There are specific rules governing who qualifies, but generally they fall into two categories: a child or a relative.
Dependant
Reports how much an employer paid an employee and how much tax is withheld during the year
W-2
Spending by the federal government required by previously existing laws. This includes funding programs like Social Security and Medicare/Medicaid.
The bank's accounting of your transactions
Bank Statement
A method of saving whereby you put a fixed amount of income into a savings account before you pay monthly bills or make purchases.
Paying Yourself First
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
Used to report non-employment income, including dividends paid from owning a stock or income that you earned as an independent contractor
1099
The deadline to file your taxes without an extension.
April 15th
Name two ways that you can deposit money from your bank account.
Mobile Deposit, Going to the actual bank, Direct Deposit, Payment Apps, Depositing at an ATM.
Other than a regular savings account, where can you save money?
Money Market Account, Certificate of Deposit
A specific dollar amount that reduces your taxable income.
Standard Deduction
$12,550
To verify the identity and employment authorization of individuals hired for employment in the United States.
I-9