Unit 2 Taxes Vocabulary

Front

The standard Internal Revenue Service (IRS) form that individuals can use to file their annual income tax returns.

Back

1040

Front

A form details all "non-employee" compensation, including for specific jobs like freelancers or contractors.

Back

1099

Front

An inspection of a filer's tax return by the IRS.

Back

Audit

Front

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

Back

Dependent

Front

Any income (wages/salary) that is generated by working.

Back

Earned Income

Front

The set amount of money, per dependent, you can subtract from your taxable income.

Back

Exemption

Front

A federal law requires an employer to withhold taxes from the wages they pay their employees, with funds going toward Social Security and Medicare.

Back

FICA (Federal Insurance Contributions Act)

Front

A category that defines the type of tax return an individual will use, primarily based on marital status, and determines the size of your tax brackets and how much of your income is taxed at each rate.

Back

Filing Status

Front

Form used by an employer to verify an employee's identity and establish eligibility to work in the U.S.

Back

I-9

Front

Taxes paid by employees to federal and state government through a direct deduction from their paycheck

Back

Income Tax