Tax Forms
An IRS form that an employer must provide to each employee every year. It reports an employee's annual wages and the taxes withheld from their paycheck.
What is a W-2?
A tax added to the price of taxable goods and services at the point of sale. In the U.S., these taxes are imposed at the state and local levels, not by the federal government.
What is a sales tax?
An amount that taxpayers can subtract directly from the taxes they owe, providing a dollar-for-dollar reduction of their tax liability. Individuals with children may qualify for this known as The Child Tax Credit (CTC).
What is a tax credit?
The payment an employer gives an employee in exchange for their labor, typically based on hours worked and including hourly pay, commissions, bonuses, and overtime. Starts with a "w"!
What are wages?
The standard deadline to file your federal income tax return and pay any taxes you owe.
What is April 15th?
This IRS form lets your employer know how much to withhold from your pay for federal income tax.
What is a W-4?
A government-imposed tax on the earnings of individuals and businesses. The federal government, most state governments, and many local governments in the U.S. collect this tax, which is the largest source of federal revenue.
What is an income tax?
An expense that can be subtracted from your gross income to lower your total taxable income. This ultimately reduces your overall tax bill. An example is a fixed amount set by the government that varies based on your filing status (e.g., single, married filing jointly). Most taxpayers choose this option.
What is a (standard) tax deduction?
Work performed beyond an employee's regular hours, typically a standard 40-hour workweek, and is legally mandated to be compensated at a higher "premium" rate, most commonly 1.5 times the employee's regular hourly rate. Initials are "OT".
What is overtime?
An employer must give you a W-2 by this date, the year following the tax year for which the report is being issued.
What is January 31st.
This form is used to report rents, royalties, prizes and awards and other sources of income other than your primary job.
What is a Form 1099?
An annually or semi-annually assessed tax paid by property owners to their local government. The revenue funds essential public services like schools, police departments, and road maintenance.
What is a property tax?
A tax on the profit from selling an asset, such as stocks, real estate, or collectibles, for more than its original cost.
What is a capital gains tax?
A fixed, regular payment an employer gives an employee for their work, usually expressed as an annual amount but paid out at regular intervals like monthly or biweekly. Unlike hourly wages, which vary with hours worked, a set payment regardless of the number of hours an employee works in a pay period. This is usually held position by professionals, managers, etc.
What is a salary?
An individual's total earnings from an employer before any taxes, benefits, or other deductions are subtracted from their paycheck.
What is gross pay?
Used by individuals (citizens or residents of the United States) to file an annual income tax return.
What is a Form 1040?
A tax system in which the tax rate increases as the taxable income or wealth of an individual increases. The U.S. federal income tax is an example of this type of tax system.
What is a progressive tax system?
The U.S. federal agency responsible for administering and enforcing the nation's tax laws.
What is the IRS?
The minimum wage in South Carolina for 2025 which is the same as the current federal minimum wage. South Carolina, along with a few other states, does not have its own minimum wage law and therefore follows the federal minimum wage rate.
What is $7.25?
The amount of money you actually take home from your paycheck after all mandatory and voluntary deductions, such as taxes, health insurance premiums, and retirement contributions, are subtracted from your gross pay.
What is net pay?
A U.S. government document that employers are required to complete to verify the identity and employment eligibility of all new hires in the United States.
What is an I-9 Form?
This type of tax disproportionately impacts low-income individuals by taking a larger percentage of their income than it does from high-income individuals, even though the tax rate itself might be the same for everyone. A common example is a sales taxes.
What is a regressive tax?
This tax is paid on a company’s taxable income.
What is a corporate tax?
This law in the U.S. govern these requirements for non-exempt employees, aiming to protect workers from excessively long hours and ensure they receive fair pay for their extra time and effort. Acronym is "FLSA". Regulates minimum wage and other things like overtime.
What is the Federal Fair Labor Standards Act (FLSA)?
A U.S. federal payroll tax that funds Social Security and Medicare, which provide benefits for retirees, people with disabilities, and children of deceased workers. The tax is deducted directly from employees' paychecks. Acronym is "FICA".
What is Federal Insurance Contributions Act?