Taxes

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.

W-4

a form employment form required by law that you complete so that your employer can determine the proper amount to withhold from your paycheck

W-2

Form you fill out that shows how much you have earned and paid in taxes for the previous year

progressive tax

a tax in which the tax rate increases as income level increases

regressive tax

A tax in which the burden falls relatively more heavily on low-income groups than on wealthy taxpayers.

1099-INT

a statement of the interest your bank paid on your savings that year

property tax

Main source of tax revenue for local governments, majority of school funding is paid for by this tax

Sales tax

Main source of tax revenue at the state level

Income tax

Main source of revenue for the federal government

taxable income

the amount on which taxes are calculated

standard deduction

A stated amount that you may subtract from adjusted gross income instead of itemizing your deductions

Tax principles

Benefit principle taxes are paid by those who benefit from the good or service

Local tax

Schools, public world, park, police,fire, local roads

State tax

Healthcare, state highways , education

Federal

Social security , military, healthcare, welfare, consumer protection

(IRIS) the Internal Revenue Service

Tax returns processing, tax payer service, enforcement

Gross income

Total income before deductions