Federal Tax Vocabulary

total income minus certain adjustments and reductions such as contributions to a retirement account, interest on a student loan, and taxes

• Adjusted net incoming

• Adjusted gross income

• Total gross income

• income

Taxes levied (collected) on personal income is called?

• Federal income tax

• State income credits

• Property tax

the federal agency that collects income taxes in the United States

A tax form filled out by an employee to indicate the amount that should be withheld from his/her paycheck for taxes

• Form W-1

• Form W-2

• Form W-3

• Form W-4

________ _______ is the amount of money you actually receive in your paycheck after deductions, also called take-home pay

• net pay

• gross pay

• group insurance

• withholding allowance

Refers to if you are filing your taxes as single or married.

• filling option

• filing status

• options

• tax allowance

What is Gross Income?

• The total income earned after taxes

• The total income earned before any deductions or taxes are applied

• The total income from investments only

• The total income from gifts only

Adjusted Gross Income

= ______________ - ___________

• Gross Income - Adjustments

• Gross Income - Deductions

• Taxable Income - Deductions

• Taxable Income - Gross Income

Withholdings from paychecks that go to provide income support for people who are unemployed, disabled, or over age 65, taxed at 6.2%

• 401k
• Social Security
• Medicare
• Medicaid

___________ is a federal government program to provide medical insurance, financed by taxes, taxed at 1.45%

• social security

• net pay

• medicare

• graduated