CFM Vocab Unit 1 Taxes Y5

Taxes

• A tax form filled out by an individual and filed with the IRS that determines the amount of income tax owed in a single year.
• the wages withheld (or subtracted) from an employee's paycheck usually to pay taxes and benefits
• Form that details all "non-employee" compensation. This includes income for completing specific jobs, like freelancers or contractors who are effectively self-employed.
• required payments of money to governments, which use the funds to provide public goods and services for the benefit of the community as a whole

Net Pay

• Total earnings before any deductions are taken
• A tax form you receive in January from your employer that tells how much you earned and how much you paid in taxes.
• Total earnings after payroll taxes and other deductions have been taken out; also called take-home pay
• the hourly, weekly, or monthly amount an employee is paid for their work performed

Gross Pay

• Total earnings before any deductions are taken
• the wages withheld (or subtracted) from an employee's paycheck usually to pay taxes and benefits
• someone "other than the taxpayer or spouse" who qualifies to be claimed by someone else on a tax return
• Form that details all "non-employee" compensation. This includes income for completing specific jobs, like freelancers or contractors who are effectively self-employed.

Wages

• Filled out when you are first hired used to verify that an employee is eligible to work in the US
• A federal tax form filled out by an employee to indicate the amount that should be withheld from his/her paycheck for taxes.
• the wages withheld (or subtracted) from an employee's paycheck usually to pay taxes and benefits
• the hourly, weekly, or monthly amount an employee is paid for their work performed

Deductions

• Total earnings before any deductions are taken
• Filled out when you are first hired used to verify that an employee is eligible to work in the US
• the hourly, weekly, or monthly amount an employee is paid for their work performed
• the wages withheld (or subtracted) from an employee's paycheck usually to pay taxes and benefits

Dependent

• someone "other than the taxpayer or spouse" who qualifies to be claimed by someone else on a tax return
• the hourly, weekly, or monthly amount an employee is paid for their work performed
• required payments of money to governments, which use the funds to provide public goods and services for the benefit of the community as a whole
• Total earnings after payroll taxes and other deductions have been taken out; also called take-home pay

W-4

• Form that details all "non-employee" compensation. This includes income for completing specific jobs, like freelancers or contractors who are effectively self-employed.
• A federal tax form filled out by an employee to indicate the amount that should be withheld from his/her paycheck for taxes.
• Total earnings after payroll taxes and other deductions have been taken out; also called take-home pay
• the hourly, weekly, or monthly amount an employee is paid for their work performed

W-2

• required payments of money to governments, which use the funds to provide public goods and services for the benefit of the community as a whole
• the wages withheld (or subtracted) from an employee's paycheck usually to pay taxes and benefits
• Total earnings before any deductions are taken
• A tax form you receive in January from your employer that tells how much you earned and how much you paid in taxes.

1099

• Form that details all "non-employee" compensation. This includes income for completing specific jobs, like freelancers or contractors who are effectively self-employed.
• the hourly, weekly, or monthly amount an employee is paid for their work performed
• Filled out when you are first hired used to verify that an employee is eligible to work in the US
• Total earnings before any deductions are taken

1040

• A tax form filled out by an individual and filed with the IRS that determines the amount of income tax owed in a single year.
• required payments of money to governments, which use the funds to provide public goods and services for the benefit of the community as a whole
• the hourly, weekly, or monthly amount an employee is paid for their work performed
• Filled out when you are first hired used to verify that an employee is eligible to work in the US