Personal Fiance

Payroll Tax

must pay based off of perecentage of eployees saaray towards social security and medicare

Exemption

set amount of money you can subtract from yout taxabe money

Medicare

od people health mattters

Capital Gain

moeny you get from investing (Initatly invested - how much you gain )

FerderaI Insurance Conribution Act (FICA) LAW

money the job takes ou your wages regardless

Income Tax

paid by employees to fed.state through direct deduction from their pay check

Effective Tax Rate

rate teh actual percentage you pay on your taxes

Social Security

provides income toiitary peeps and other peeps as well

1040 form

used to actualy file their taxes

1099 form

unearned money, student loand, student grants, decides if you get a return or not

Tax Rate

at which taxes are calculated on how they pay unto each other

W-2 form

employer to me

W-4 form

me to employer

Discretional Spending

approved by the legislative

Marginal Tax Break

your highest income ffalls in this bracket

Exise Tax

taxes paid on little things like (toilet paper and napkins)

Audit

Inspection of your tax paper returned by the IRS