2.6 Day 1 Income Taxes

Front

What is earned income made up of?

Back

Wages and salaries.

Front

What are FICA taxes?

Back

U.S. federal payroll taxes imposed on both employees and employers to fund Social Security and Medicare.

Front

By what date must employers mail Wages and Tax Statements to employees?

Back

January 31.

Front

What is your filing status if your spouse dies in November?

Back

Married filing jointly.

Front

What program helps provide retirement income for the elderly and pays disability benefits?

Back

Social Security.

Front

What is the purpose of income taxes?

Back

To fund government services and programs.

Front

What is the difference between gross income and net income?

Back

Gross income is total earnings before taxes and deductions; net income is what remains after taxes and deductions.

Front

What is a W-2 form?

Back

A form that reports an employee's annual wages and the amount of taxes withheld from their paycheck.

Front

What is the standard deduction?

Back

A fixed dollar amount that reduces the income you're taxed on.

Front

What is the tax filing deadline for individuals?

Back

April 15.