documents
Form used to file your annual income tax return.
1040 form
Money earned from sources like wages, salaries, and bonuses
Earned income
Legally minimizing tax liability through permissible means.
tax avoidance
Amount that reduces taxable income, lowering the amount of tax owed
tax deduction
Form that shows how much you earned and how much was withheld from your paycheck.
W-2 form
Person who relies on someone else for financial support.
Dependent
Illegal act of not paying taxes owed
Tax evasion
Around that directly reduces the tax owed, often based on specific criteria
Tax credit
Form used to let your employer know how much to withhold from your paycheck.
W-4 Form
Income that is subject to taxation after deductions and exemptions.
Taxable income
Examination of tax return by the IRS to verify accuracy and compliance
Tax audit
Amount of tax that an individual or entity is legally obligated to pay
Tax liability
Documents showing details of your paycheck, including deductions and earnings.
Paystub
Transaction that triggers a tax liability.
Taxable event
Additional charge imposed for failing to pay taxes on time
Tax penalty
Money returned by the government when you’ve overpaid taxes
Tax refund
Document filed with the government reporting income and taxes owed.
Tax return
Range of income subject to a certain tax rate.
Tax bracket
Partial payment of taxes due, spread over a period
Tax installment
Results of actions that impact your taxes, such as deductions or credits
Tax consequences