Net income Vocab

What is Federal income Tax

• Collected by the federal government to pay for retirement and disability benefits.

• You can withold some money from taxation based on whom you support. For Example: yourself, your spouse and your children

• Collected by the federal government to provide health insurance for those 65 and older

• A tax collected by the United States Internal Revenue Service (IRS) on the annual earnings of individuals and business. Tax is determined tax scheldue where dfiiferent levels of earnings are taxed at different tax rates.

Tags

CCSS.RI.11-12.4

What is Social Security

• Collecting the same rate on all income levels. You pay the same percentage of taxes no matter how much or how little you make.

• Is a percentage of money that you pay to the state government based on the income you make at your job. Most states impose a graduated tax rate, but some states have a flat tax rate.

• Collected by the federal government to pay for retirement and disability benefits.

• A specific amount of money that you could deduct for yourself and for each of your dependents.

Tags

CCSS.RI.11-12.4

What is Withholding allowances

• (A health insurance plan offered by an employer which can be purchased for a lower cost than individual insurance. Money business will pay part of the cost and the employees pay for the remaining amount.

• You can withold some money from taxation based on whom you support. For Example: yourself, your spouse and your children

• Collecting the same rate on all income levels. You pay the same percentage of taxes no matter how much or how little you make.

• A specific amount of money that you could deduct for yourself and for each of your dependents.

  
  

What is Medicare

• The act requires employers to deduct 7.65% of your income for Social Security and Medicare taxes

• Collected by the federal government to provide health insurance for those 65 and older

• ) Is a percentage of money that you pay to the state government based on the income you make at your job. Most states impose a graduated tax rate, but some states have a flat tax rate.

• Collecting the same rate on all income levels. You pay the same percentage of taxes no matter how much or how little you make.

What is Group Health Insurance Plan

• A health insurance plan offered by an employer which can be purchased for a lower cost than individual insurance. Money business will pay part of the cost and the employees pay for the remaining amount.

• The act requires employers to deduct 7.65% of your income for Social Security and Medicare taxes

• A specific amount of money that you could deduct for yourself and for each of your dependents.

  
  

•  Collected by the federal government to pay for retirement and disability benefits.

What is Federal Insurance Contributions Act (FICA)

• You can withold some money from taxation based on whom you support. For Example: yourself, your spouse and your children

• A specific amount of money that you could deduct for yourself and for each of your dependents.

  
  

•  Collected by the federal government to pay for retirement and disability benefits.

• The act requires employers to deduct 7.65% of your income for Social Security and Medicare taxes

Tags

CCSS.RI.11-12.4

CCSS.RI.11-12.2

What is State Income Tax

• ) The act requires employers to deduct 7.65% of your income for Social Security and Medicare taxes

• Is a percentage of money that you pay to the state government based on the income you make at your job. Most states impose a graduated tax rate, but some states have a flat tax rate.

• Collected by the federal government to pay for retirement and disability benefits.

•  (A health insurance plan offered by an employer which can be purchased for a lower cost than individual insurance. Money business will pay part of the cost and the employees pay for the remaining amount.

What is a Personal Exemptions

• A specific amount of money that you could deduct for yourself and for each of your dependents.

•  You can withold some money from taxation based on whom you support. For Example: yourself, your spouse and your children

•  Collected by the federal government to provide health insurance for those 65 and older

•  Is a percentage of money that you pay to the state government based on the income you make at your job. Most states impose a graduated tax rate, but some states have a flat tax rate.

Tags

CCSS.RI.11-12.4

CCSS.L.11-12.4

What is a Flax Tax Rate

• A specific amount of money that you could deduct for yourself and for each of your dependents.

• The act requires employers to deduct 7.65% of your income for Social Security and Medicare taxes

•  Collected by the federal government to pay for retirement and disability benefits.

• Collecting the same rate on all income levels. You pay the same percentage of taxes no matter how much or how little you make.

Tags

CCSS.6.RP.A.3C