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