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