Personal Finance Lesson 5-4

An easier version of the IRS 1040 Tax Form individuals can use if certain qualifications are met.

• 1040 EZ Tax Form

• Adjusted Gross Income

• Deductions

• Exemptions

An IRS form used by individuals to file their personal federal income tax returns annually

• Adjusted Gross Income

• 1040 Tax Form

• Taxable Income

• Wage

An individual's total gross income minus certain qualifying deductions.

• Deductions

• Adjusted Gross Income

• Taxable Income

• Salary

A qualifying expense that reduces taxable income.     

• Deductions

• Exemptions

• Taxable Income:

• Interest

A legal deduction that reduces the amount of taxable income. 

• Taxable Income

• Interest

• Exemptions

• Rent

The amount the tax rate is applied to when filing tax returns, and is calculated by Adjusted Gross Income minus any additional qualifying deductions and exemptions.

• Wage

• Salary

• Interest

• Taxable Income

Money an employer pays to an employee for specific work performed, usually based on hours worked or for a defined task.   

• Wage

• Salary

• Interest

• Rent

A fixed amount of money an employer pays to an employee, over a specific period of time, for performing work.    

• Interest

• Exemptions

• Deductions

• Salary

Money that is charged for loaning money; the creditor, who loans the money, charges interest to the debtor, who borrows the money.    

• Rent

• Interest

• Dividends

• Capital Gains

  Money charged by a landlord to a tenant for the use of an apartment, office, or other property.

• Rent

• Dividends

• Exemptions

• Taxable Income: