Taxes

Form W-4

Form that helps an employer determine how much to withhold from an employees paycheck for federal income tax purposes

Personal Income Tax

based on the amount of taxable income that people receive annually

Voluntary Compliance

relies on individual citizens to report their income freely and voluntarily, must calculate and file on time

Withholding

Money that employers withhold from employees paychecks

Dependent

A person who relies on someone else for support and care

Exempt (From Withholding

Free from withholding of federal income tax

Interest Income

Income a person receives from certain financial accounts or from lending money to someone

Taxable income

the income on which tax is figured

Excise Taxes

Taxes on the sales or use of specific products or transiactions

Progressive Taxes

takes a larger percentage of income from high Income groups than low income groups

Regressive taxes

Takes larger percentage from low income groups than high income groups

Proportional Taxes

A tax that takes the same percentage from all incomes

Tariff

taxes on products imported from foreign countries

Standard Deduction

amount provided by law and Based on filing status