Forms
Form used to let your employer know how much to withhold from your paycheck.
What is a W-4 Form?
Money earned from sources like wages, salaries, and bonuses.
What is earned income?
Date by which taxes must be filed and paid to avoid penalties.
What is the tax deadline?
Additional charge imposed for failing to pay taxes on time.
What is a tax penalty?
Amount that directly reduces the tax owed, often based on specific criteria
What is tax credit?
Document showing details of your paycheck, including deductions and earnings.
What is a paystub?
Income that is subject to taxation after deductions and exemptions
Taxable Income
Transaction that triggers a tax liability.
What is a taxable event?
Examination of a tax return by the IRS to verify accuracy and compliance.
What is a tax audit?
Amount that reduces taxable income, lowering the amount of tax owed.
What is tax deduction?
Form that shows how much you earned and how much was withheld from your paychecks.
What is a W-2 form?
Money returned by the government when you’ve overpaid taxes
Tax refund
Results of cations that impact your taxes, such as ded or credits.
What is Tax Consequences?
Illegal act of not paying taxes owed.
What is tax evasion?
Range of income subject to a certain tax rate
What is a tax bracket?
Form used to file your annual income tax return.
What is a 1040 form?
What is a dependent?
Partial payment of taxes due, spread over a period.
What is Tax Installment?
Legally minimizing tax liability through permissible means.
What is tax avoidance?
Difference between a deduction and a credit: one reduces taxable income, the other reduces what you owe directly.
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What is the difference between tax deduction and tax credit?
Document filed with the government reporting income and taxes owed.
What is a tax return?
Choosing not to have income taxes withheld from your paycheck.
What does exempt mean on a W-4 form?
Amount of tax that an individual or entity is legally obligated to pay
What is Tax liability?
Total range of possible penalties, audits, or actions based on tax mistakes.
What are tax consequences? (or What can result from errors or fraud?)
Legal strategies used to reduce the amount of tax owed.
What is tax avoidance?