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28 Cards in this Set
- Front
- Back
people that support you financially
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your dependents
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the simplest of tax forms
most people qualify to use |
1040EZ
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half of this comes from you and half from your employer
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medicare and social security taxes
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busy time for tax preparers
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every April
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the amount you receive after withholdings are subtracted from your gross pay
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net income
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it is more beneficial to save your money ___than to let the government withhold more taxes
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in a bank
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purpose of withholding
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to prepay your federal income and social security taxes
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amount earned before taxes are withheld
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gross income
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form filled out by employee providing information needed to determine the proper amount to withhold from your paycheck
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form W-4
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number that reduces the amount of money withheld from your pay
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allowances
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roads, schools, national defense are considered to be
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public goods
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if your withheld tax is more than your tax liability ...
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you get a refund
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if your tax withheld is less than your tax liability...
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than you owe the IRS
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two catagories of payroll taxes
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income and social insurance
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S.S. is only paid on the first ___
you make each year |
87,000
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taxes based on the payroll of a business
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payroll taxes
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the two taxes included in FICA
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social security
and medicare |
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IRS
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Illinois Revenue Service
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FICA
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Federal Insurance Contributions Act
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3 ways to avoid paying a large sum of taxes at the end of the year
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*sending extra tax payments to the IRS
*claiming fewer allowances *specifying an extra amount to be withheld from each check on your W-4 |
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tax deadline
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April 15
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3 ways to classify taxes
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*their principles
*the share of income they take *how they are collected |
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things local and state govt. provide to us
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*building and maintaining local roads
*building and staffing public schools *operating police and fire services *building and operating state colleges and universities |
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cont'd
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*supporting hospitals and other medical facilities
*maintaining a criminal justice system *constructing and operating sewage treatment plants *operating unemployment programs |
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qualifications to file a 1040EZ
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*single, or married filing jointly with spouse
*no dependents *you and spouse under age 65 *taxable income less than 50,000 for the year |
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cont'd
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*earned no more than 400. int.
*neither you or spouse is blind *only income came from wages, int, tips, scholarships, unemployment |
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sin taxes
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taxes placed on goods that are harmful to your health-but legal
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examples of sin taxes
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*tobacco
*alcohol |