Personal Finance Vocabulary - Taxes #2

W-2

Form reporting an employee's wages and taxes withheld.

1099

Tax forms reporting certain types of income not reported on a W-2.

W-4

Employee form used to help determine federal income tax withholding.

I-9

Form used to verify identity and authorization to work in the United States.

Filing Status

Tax classification that affects filing requirements and tax calculations.

Dependent

Qualifying person a taxpayer may be eligible to claim for certain tax purposes.

Allowances

Older W-4 concept formerly used to determine withholding.

Standard Deduction

Set amount that can generally be subtracted when determining taxable income.

Taxable Income

Income subject to tax after applicable adjustments and deductions.

1040

Primary federal individual income tax return.

Exemption

Income, property or taxpayers excluded from certain taxation under applicable rules.