Taxes for Personal Finance
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14 terms
Terms | Definitions |
|---|---|
 1099INT | Report on interest income sent from the bank to both the IRS and the taxpayer for savings account interest. |
| 1099MISC | Report of income made to the IRS and the taxpayer for any moner paid by the job, instead of as a salaried employee. |
| FICA | a tax on employees and employers that is used to fund the Social Security system |
| gross income | the total amount of income from wages before any payroll deductions |
| income tax | a personal tax levied on annual income |
| standard deduction | an amount set by the IRS on which no taxes are paid. |
| tax audit | A reveiw of a tax return by the Irs in which the taxpayer must show proof of all deductions, expenses, and income. |
| tax exemption | A number that includes the taxpayer and any dependents. Because most teens are listed as dependents on their parents taxes, their tax exemption is 0. |
| tax refund | A check returning the taxpayers money to the taxpayer after tax retuns are filed and the over paid tax is determined. |
| tax table | The table in the 1040EZ booklet showing levels of income on one side and the tax owed on the other side. |
| W2 | Report sent from the eployer to both the IRS and the employee, showing gross income, total taxes paid, and total voluntary deductions. |
| W4 | The withholding form each new employee fills out, stating the number of exemptions. the more exemptions listed, the less withholding tax will be taken from the paycheck. |
| net income | the excess of revenues over outlays in a given period of time (including depreciation and other non-cash expenses) |
| 1040EZ | The quick tax form most often used, in paper or online, for thos with uncomplicated tax situations. |
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