Tax Documents
The IRS form that employers MUST provide to their employees that reports wages paid and taxes withheld in a given year.
W-2
Total amount of earned income before taxes are withheld
Gross income
This is an important factor in computing taxable income. This depends in part on martial status and family situation.
Filing status
When can you begin submitting your taxes?
End of January
What does IRS stand for?
Internal Revenue Service
The IRS form completed by an employee upon being hired that indicates their tax situation to employers. This form allows you to elect into additional tax withholdings that increase your odds of a tax refund.
W-4
Total amount of earned income after taxes are withheld
Net income
The tax rate you will pay for each portion of your income that falls within a certain set range
Tax bracket
What is the last day you can file your taxes?
April 15th (Tax Day)
Willful failure to pay taxes is called __________ _________.
Tax Evasion
The main tax document you must file with your taxes that shows the IRS your taxable income.
1040
This payment method allows for electronic transfer of funds directly into your bank account
Direct Deposit
Wages withheld from an employee's paycheck for the payment of taxes, benefits, or garnishments
Deductions (withholdings)
How can you receive your tax refund?
Physical check or direct deposit
An examination of your tax return by the IRS
Audit
The tax document you receive for additional income NOT earned through your employer
1099
The combination of the Social Security tax and Medicare tax is referred to by the acronym _________________.
FICA (Federal Insurance Contributions Act)
A child, relative, or someone else who relies on you financially
Dependent
What three categories do our federal tax funds get allocated to?
Mandatory, Discretionary, and Interest spending
Who should you contact for any tax advice?
Local tax professional or IRS
The tax form that reduces your taxable income because of interest paid on a loan
1098s
An extra source of income that did not come through wages. For example, if you receive a giftcard, this is considered taxable income and therefore must be reported on the paystub.
Taxable fridge benefit
The profit from the sale of specific assets, including shares of mutual funds, real estate and stock.
Capital gain
What is the difference between standard and itemized deductions?
Both deductions lower your taxable income. Standard deduction deducts a fixed amount while itemized deductions are comprised of a list of eligible tax reduction expenses.
The IRS is an agency of this department, and has its headquarters in Washington, D.C.
Department of Treasury