Taxes Unit Vocabulary (NGPF)

Interest income

• Income earned through interest on savings accounts, bonds, CDs, etc.

• Income earned from selling goods and services.

• Income generated from investments in stocks only.

• Income received as a gift or donation.

Taxable income

• The total income before any deductions are made.

• The amount of income that is used to calculate an individual's or a company's income tax due.

• The income that is exempt from taxation.

• The income earned from investments only.

Earned income

• Any income generated by investments.

• Any income (wages/salary) that is generated by working.

• Any income received as a gift or inheritance.

• Any income from government benefits.

Tax return

• An annual report to the IRS summarizing total income, deductions, and the taxes withheld by employers.

• A document filed to claim a refund for overpaid taxes.

• A summary of all financial transactions for a business over a fiscal year.

• A form used to report foreign income to the IRS.

Tax rate

• The percentage at which taxes are paid on each dollar of income.

• A fixed amount paid annually regardless of income.

• The total amount of money earned before any deductions.

• The rate at which investments are taxed only upon sale.

Tax credit

• An amount subtracted directly from the tax owed.

• A fee added to the total tax bill.

• A percentage of income that is taxed.

• A refund issued after tax filing.

Capital gain

• Profit from the sale of an asset, such as a stock or a bond, calculated by subtracting the price you initially paid from the price you then sold it for.

• A tax imposed on the profit from the sale of an asset.

• The total value of an asset after depreciation.

• The increase in value of an asset over time without selling it.

Paycheck stub

• A document that summarizes your annual income and tax returns.

• A document attached to every paycheck that details your earnings and the amount withheld for taxes, health insurance, retirement funds, etc.

• A form used to apply for a loan from a bank.

• A receipt for a purchase made at a retail store.

Medicaid

• A government-run insurance program that provides healthcare assistance to low income Americans.

• A private insurance plan for high-income individuals.

• A federal program that only covers elderly citizens.

• A state-funded initiative for middle-class families.

Medicare

• A government-run insurance program that provides healthcare assistance to elderly and disabled Americans.

• A private insurance plan for young adults.

• A state-funded program for low-income families.

• A health initiative for veterans.