Tax Vocab

Front

Federal law requiring employers to withhold taxes from employee wages for Social Security and Medicare.

Back

FICA Tax

Front

Standard IRS form for annual income tax returns

Back

1040

Front

Form detailing "non-employee" compensation for freelancers/contractors

Back

1099

Front

Someone you support financially who can be claimed on a tax return to reduce taxable income.

Back

Dependent

Front

Federal government spending determined by legislative action and approved by votes.

Back

Discretionary Spending

Front

Actual tax rate as a % of income

Back

Effective Tax Rate

Front

Set amount of money per dependent subtracted from taxable income

Back

Exemption

Front

Taxes deducted from employee paychecks for federal and state government

Back

Income Tax

Front

Government-run insurance for healthcare assistance to elderly and disabled Americans

Back

Medicare

Front

Federal program providing monthly benefits to retirees, military families, survivors, and disabled individuals.

Back

Social Security