Acronyms & Vocab
SSN
What is Social Security Number
Who receives the largest part of its revenue from payroll or Income taxes?
What is Federal Government
Net income
What is the amount of income your receive AFTER TAXES are taken out?
What is form 1040
Deadline for employers to mail W-2s to their employees (either by paper or electronically)
What is January 31st.
YTD
What is Year To Date?
The two TYPES of government spending
What is mandatory and discretionary
Your employer collects payroll taxes by deducting or _________________ your money from your wages. Income taken from your paycheck goes to prepay your federal income tax and social insurance tax.
What is Withholding?
I am received in January, There is one of me for every job I work, You can tell how much you earned and how much you paid in taxes by reading me
What is a W-2 Form
Medicare, Medicaid, Social Security
What are examples of federal programs that recieve money from federal tax dollars that are collected from payroll taxes?
A government-run insurance program that provides healthcare assistance to elderly and disabled Americans
What is Medicare?
This is charged when purchasing goods or services
What is a Sales Tax?
What is one reason the gov't collects taxes out of each paycheck as opposed to sending a bill at the end of the year?
What is: People are more likely to pay their taxes & Spreads out payments to make it more manageable.
Advantage to e-filing your taxes?
What is shorter, easier processing time and a faster refund?
Having an IRS offical reviewing your tax return for one or more years of filing.
What is an AUDIT?
________________ is the law that requires workers and their employers to contribute to Social Security & Medicare.
What is FICA or Federal Insurance Contributions Act
This item is taxed at 4% and taxes are due after the purchase or after it is gifted to you
What is a car
________________ refers to a number that reduces the amount of income withheld from your pay. Ex: Children represent this term.
What is Allowances (aka Deductions)
Which tax form provides the information your employer needs to determine the proper amount to withhold from your paycheck?
What is W-4
Difference between earned and unearned income
What is: Earned, you perform a job and get paid for it whereas unearned is income received through other sources, (investments, cash gifts, benefits, etc.).
______________________- expenses you can legally subtract from your income before calculating your taxes
What is Deductions
Standard Deduction will be accepted
With taxes, not all have this...but New York does
State Taxes
I am a type of voluntary payroll deduction used for retirement.
What is retirement or health insurance?
*having a disability
*not being able to provide for more than half of your financial support
*Qualifying child under 19 yrs of age
*Enrolled in school full-time and under a certain age
What is possible requirements for being considered a dependent?
* Don't have time
* Don't know what to do
* Complicated status or status change
* Lots of questions
* New tax laws that are confusing
What are reasons to use a professional tax accountant to file your taxes?