Tax Terms
Income which results from the personal labor or service of an individual
What is earned income
Tax level responsible for protecting citizens against neighborhood crime
What is local tax?
Portion of income which is not subject to tax and can be used to reduce a tax bill
What is a standard deduction?
A tax on tobacco and alcohol products
What is an excise tax?
IRS stands for
What is Internal Revenue Services?
Income which is not gained by labor, service or skill
What is unearned income?
The correct order, beginning with who creates tax law and ending with who distributes the tax dollars on the federal level
What is Congress, President, IRS, Treasury?
Type of tax deduction allows the taxpayer to list out all of his or her expenses for the year such as property tax, medical expenses, eligible charity donations, unreimbursed business expense
What is an itemized deduction?
The percentage rate for calculating Social Security tax withholding
What is 6.2 percent?
A tax on goods purchased
What is sales tax?
Range of incomes subject to a certain income tax rate
What is a tax bracket?
How many different tax brackets are in the federal tax system?
What is seven?
An amount of money a taxpayer can subtract from taxes owed to the government?
Medicare taxes are calculated at what percentage of an employee's earnings
What is 1.45 percent?
The price paid for using someone else's money
What is interest?
Direct tax levied on income of a person
What is personal tax?
Employers must provide a copy of employees' W-2 forms by what date?
What is on or before January 31?
Gift made by an individual or an organization to a nonprofit organization, charity or private foundation
Insurance deductions that are subtracted from an employee's gross pay
What is a voluntary deduction?
People who are considered contract labor usually pay their taxes how often
What is quarterly?
Savings on a taxpayer’s liability.
What is a tax break?
The levels of government that may collect an income tax
What are federal government and state governments?
Amount which lowers a person’s tax liability by lowering taxable income
What is a tax deduction?
Payment for additional work done outside of regular working hours
What is overtime pay?
The form that reports an employee’s annual wages and the amount of taxes withheld form his or her paycheck?
What is a W-2 form?