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1040
What individual taxpayers use to file their taxes with the IRS
1099
A collection of forms used to report payments that typically aren't from an employer
401(k)
An employer-sponsored retirement savings plan that offers significant tax benefits while helping you plan for the future
Deduction
An amount you subtract from your income when you file so you don't pay tax on it
Dependent
A qualifying child or relative who relies on you for financial support
Discretionary Government Spending
Money formally approved by Congress and the President during the appropriations process each year
Earned Income
All the taxable income and wages you get from working for someone else, yourself or from a business or farm you own
Employer Contributions
The taxes an employer pays in order to employ someone in a certain country
FICA
a U.S. federal payroll tax
Gross Pay
What employees earn before taxes, benefits and other payroll deductions are withheld from their wages
Household Employee
Housekeepers, maids, babysitters, gardeners, and others who perform household work in or around your private residence as your employee
I-9
A work authorization document that employers are required to file and retain when they hire a new employee, to prove they are legally entitled to work in the US
Income Taxes
A type of tax governments impose on the income that businesses and individuals generate
Mandatory Government Spending
Funding for entitlement programs like Medicare and Social Security and other payments to people, businesses, and state and local governments
Medicare
A federal employment tax that funds a portion of the Medicare insurance program
Net Pay
The amount of money employees actually take home after all payroll deductions
Pre-tax Deductions
Any money taken from an employee's gross pay before taxes are withheld from their paycheck
Refund
When their total tax payments are greater than the total tax
Self-Employed
You carry on a trade or business as a sole proprietor or an independent contractor
Social Security
A percentage of gross wages that most employees, employers and self-employed workers must pay to fund the federal program
Unearned Income
Includes investment-type income such as taxable interest, ordinary dividends, and capital gain distributions
W-2
An IRS tax form used in the United States to report wages paid to employees and the taxes withheld from them
W-4
States any additional amount to withhold from each paycheck to use to compute the amount of federal income tax to deduct and withhold from the employee's pay
Withholding
The income an employer takes out of an employee's paycheck and remits to the federal, state, and/or local government
