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W-4 form
indicates the marital status and the number of withhold allowances
a single person can claim one withholding allowance
a married person may claim an additional allowance for a spouse
W-2 form
a wage and tax statement
this form is provided annually to each employee as well as to the social security administration
1040 EZ form
if you are single or married filing jointly and claim no dependents
taxable income must be less than $100,000 and interest earned $1500 or less
deadline date to file taxes is April 15 of the current year
Federal income tax
a deduction from total earnings based on marital status and total number of dependents
social security tax
a federal tax paid for old-age, survivors, and disability insurance (total earning times (*) 6.2%)
medicare tax
a federal tax paid for health insurance
age 65 and over are eligible (1.45% of total earnings)
withholding allowance
a deduction from total earnings for each person legally supported by a taxpayers, including the employee
union
group of people working in the same or similar occupations organized for the benefits of all
benefits
a form of employee compensation in addition to your paycheck
bargaining
is the process of negotiating an employment contract for union members
401k
a qualified retirement plan sponsored by an employer (boss)
retirement plan
an account into which employee’s voluntarily contribute a portion of their earnings for retirement
IRA
individual retirement account
provides individuals with a deferred federal income tax benefit
roth IRA
retirement plan that allows tax-free withdrawals from the account
deductions
amounts, both required and optional, subtracted from the total earnings
when filing a tax return, you much choose one of the following
single
married filing jointly
married filing separately
head of the household (if you provide a home for a dependent)
widow or widower
exemption
an amount you may subtract from your income of each person who depends on your income
dependent
a person who lives with you and for whom you pay more than half of his or her living expenses (includes children and elderly parents)
employee withholding statement
a business form used to record details affecting payments made to an employee
FICA
federal insurance contributions act
the FICA tax withheld contributes to the following two federal programs
social security tax
medicare tax
