Income and Taxes

studied byStudied by 0 people
0.0(0)
learn
LearnA personalized and smart learning plan
exam
Practice TestTake a test on your terms and definitions
spaced repetition
Spaced RepetitionScientifically backed study method
heart puzzle
Matching GameHow quick can you match all your cards?
flashcards
FlashcardsStudy terms and definitions

1 / 22

encourage image

There's no tags or description

Looks like no one added any tags here yet for you.

23 Terms

1
Gross Income
the amount you earn before taxes and other payroll deductions
New cards
2
Net Income
what a person earns after payroll taxes and other deductions are taken out; often referred to as take-home payโ€‹โ€‹โ€‹โ€‹โ€‹โ€‹โ€‹
New cards
3
Withholdings
the portion of an employeeโ€™s pay held back to cover taxes and other deductionsโ€‹โ€‹โ€‹โ€‹โ€‹โ€‹โ€‹
New cards
4
Fiscal Year
a one-year period that governments or companies use for financial reportingโ€‹โ€‹โ€‹โ€‹โ€‹โ€‹โ€‹
New cards
5
Deficit Spending
spending more than you earn; an economic policy in which the government spends public funds raised by borrowing rather than by taxationโ€‹โ€‹โ€‹โ€‹โ€‹โ€‹โ€‹
New cards
6
National Debt
the total amount of debt a country owes to companies and other countries as a result of deficit spending
New cards
7
Earned Income
any income (wages/salary) that is generated by the work someone performs
New cards
8
Wage
money paid by the hour and for an agreed number of hours per week; especially for unskilled or manual laborโ€‹โ€‹โ€‹โ€‹โ€‹โ€‹โ€‹
New cards
9
Minimum Wage
the smallest amount that employers can legally pay their employees per hour of workโ€‹โ€‹โ€‹โ€‹โ€‹โ€‹โ€‹
New cards
10
Salary
a fixed annual amount earned by an employee, typically paid weekly, biweekly, or monthlyโ€‹โ€‹โ€‹โ€‹โ€‹โ€‹โ€‹
New cards
11
Passive Income
money earned on a regular basis with little or no effort required to maintain itโ€‹โ€‹โ€‹โ€‹โ€‹โ€‹โ€‹
New cards
12
Portfolio Income
income from an investment sold at a higher price than you paid for it โ€‹โ€‹โ€‹โ€‹โ€‹โ€‹โ€‹
New cards
13
Paper Asset
a representation (on paper) of stocks, bonds, currencies, mutual funds, etc.
New cards
14
Income Tax
tax paid out by anyone who earns an income
New cards
15
Tax Bracket
the income ranges in which tax rates applyโ€‹โ€‹โ€‹โ€‹โ€‹โ€‹โ€‹
New cards
16
Tax Liability
the total tax a person or business has to payโ€‹โ€‹โ€‹โ€‹โ€‹โ€‹โ€‹
New cards
17
Tax Return
a report that a taxpayer has to submit annually to the government and is used to determine a personโ€˜s tax liability
New cards
18
Tax Day
the annual deadline for filing your income taxes; usually falls on April 15
New cards
19
Standard Deduction
the dollar amount people can subtract from their income before the tax is calculated
New cards
20
Tax Schedule
a special tax form to report certain types of income or deductionsโ€‹โ€‹โ€‹โ€‹โ€‹โ€‹โ€‹
New cards
21
Itemized Deductions
a list of all eligible expenses that can be claimed to decrease taxable incomeโ€‹โ€‹โ€‹โ€‹โ€‹โ€‹โ€‹
New cards
22
Tax Credit
an amount of money a taxpayer can subtract from the taxes they owe โ€‹โ€‹โ€‹โ€‹โ€‹โ€‹โ€‹
New cards
23
Audit
an official IRS inspection of a tax return to make sure the income and deductions are accurate
New cards

Explore top notes

note Note
studied byStudied by 102 people
1036 days ago
5.0(3)
note Note
studied byStudied by 7 people
893 days ago
5.0(1)
note Note
studied byStudied by 18 people
841 days ago
5.0(1)
note Note
studied byStudied by 9 people
874 days ago
5.0(1)
note Note
studied byStudied by 7 people
99 days ago
5.0(1)
note Note
studied byStudied by 156 people
374 days ago
5.0(1)

Explore top flashcards

flashcards Flashcard (30)
studied byStudied by 28 people
325 days ago
5.0(1)
flashcards Flashcard (27)
studied byStudied by 7 people
402 days ago
5.0(1)
flashcards Flashcard (120)
studied byStudied by 1 person
110 days ago
5.0(1)
flashcards Flashcard (31)
studied byStudied by 59 people
341 days ago
5.0(1)
flashcards Flashcard (65)
studied byStudied by 3 people
775 days ago
5.0(2)
flashcards Flashcard (115)
studied byStudied by 1109 people
406 days ago
5.0(2)
flashcards Flashcard (64)
studied byStudied by 14 people
754 days ago
4.0(1)
flashcards Flashcard (46)
studied byStudied by 3 people
1 day ago
5.0(2)
robot