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100
used to provide medical benefits for certain individuals when they reach age 65. Workers, retired workers, and the spouses of workers and retired workers are eligible to receive Medicare benefits upon reaching age 65.
What is Medicare Taxes
100
money that taxpayers must pay to the government when the total tax is greater than their total tax payments.
What is amount due
100
compensation received by an employee for services performed. A bonus is given in addition to an employee's usual compensation.
What is bonus
100
If your spouse died in 2014, you can use married filing jointly as your filing status for 2014 if you otherwise qualify to use that status. The year of death is the last year for which you can file jointly with your described spouse. You may be eligible to use qualifying widow(er) with dependent child as your filing status for two years following the year of death of your spouse. For example, if your spouse died in 2012, and you have not remarried, you may be able to use this filing status for 2013 and 2014. This filing status entitles you to use joint return tax rates and the highest standard deduction amount (if you do not itemize deductions). This status does not entitle you to file a joint return.
What is Qualifying Widow(er) with Dependent Child filing status
100
includes wages, salaries, tips, and self-employment earnings.
What is earned income
200
compensation received by an employee for services performed. A salary is a fixed sum paid for a specific period of time worked, such as weekly or monthly.
What is salary
200
a dollar-for-dollar reduction in the tax. Can be deducted directly from taxes owed.
What is tax credit
200
compensation received by employees for services performed. Usually, wages are computed by multiplying an hourly pay rate by the number of hours worked.
What is wages
200
reduces the income subject to tax and varies depending on filing status, age, blindness, and dependency.
What is standard deduction
200
total income reduced by certain amounts, such as student loan interest
What is adjusted gross income
300
provides benefits for retired workers and their dependents as well as for the disabled and their dependents. Also known as the Federal Insurance Contributions Act (FICA) tax.
What is Social Security tax
300
money owed to taxpayers when their total tax payments are greater than the total tax liability. Refunds are received from the government.
What is refund
300
determines the rate at which income is taxed. The five filing statuses are: single, married filing jointly, married filing separately, head of household, and qualifying widow(er) with dependent child.
What is filing status
300
compensation received by an employee for services performed. Commissions are paid based on a percentage of sales made or a fixed amount per sale.
What is commission
300
a credit that can be paid to low-income workers, even if no income tax was withheld from the workers' pay. To receive the credit, a taxpayer must file a tax return.
What is Earned Income Credit
400
payroll taxes - include Social Security and Medicare taxes.
What is payroll taxes
400
amount that taxpayers can claim for themselves, their spouses, and eligible dependents. There are two types of exemptions: personal and dependency. Each exemption reduces the income subject to tax.
What is exemption
400
a person, other than the taxpayer or spouse, who entitles the taxpayer to claim a dependency exemption.
What is dependent
400
interest income that is not subject to income tax. Tax-exempt interest income is earned from bonds issued by states, cities, or counties and the District of Columbia.
What is tax-exempt interest income
400
similar to Social Security and Medicare taxes. The self-employment tax rate is 15.3 percent of self-employment profit. The self-employment tax is calculated on Schedule SE, Self-Employment Tax. The self-employment tax is reported on Form 1040, U.S. Individual Income Tax Return.
What is self-employment tax
500
must meet the following requirements: 1. You are unmarried or considered unmarried on the last day of the year. 2. You paid more than half the cost of keeping up a home for the year. 3. A qualifying person lived with you in the home for more than half the year (except temporary absences, such as school). However, your dependent parent does not have to live with you.
What is Head of Household filing status
500
the earned income credit meets the relationship, age, and residency tests. A taxpayer who claims the earned income credit cannot be the qualifying child of another person. A person can be claimed as a qualifying child on one tax return only.
What is qualifying child
500
if on the last day of the year, you are unmarried or legally separated from your spouse under a divorce or separate maintenance decree and you do not qualify for another filing status.
What is Single filing status
500
interest income that is subject to income tax. All interest income is taxable unless specifically excluded.
What is taxable interest income
500
you are married and both you and your spouse agree to file a joint return. (On a joint return, you report your combined income and deduct your combined allowable expenses.)
What is Married Filing Jointly filing status