Personal Finance Ch. 5 - Taxes

The tax form people must fill out to complete their taxes is the 1041.

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The law that requires workers to contribute to Social Security and Medicare is the Federal Insurance Contributions Act (FICA)

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Employers pay twice as much social security and medicare as their employee's share.

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Regressive taxes take a larger share from those individuals with larger incomes.

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Your W-4 form helps your employer know how much to withhold from your paycheck.

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Receiving a large refund from Income Taxes is a smart financial strategy.

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Direct taxes are taxes you pay that are included in the cost of something, like paying rent to your landlord.

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If your total withheld tax for the year from your paychecks is less than the scheduled tax from the tax table, then you owe additional tax money to the government.

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The ability-to-pay principle states that those who use a good or service should pay for it.

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A specified amount that you can subtract from your adjusted gross income is a deduction.

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