personal finance test

W-4

employees fill this out when starting a new job to indicate their tax withholding preferences.

I-9

new hires in the U.S. complete this form to verify employment eligibilty

pre-tax deduction

amounts subtracted from your gross pay before federal, state, and local income taxes are calculated

unearned income

Depending on your unearned income you have to file taxes for a certain amount

mandatory government spending

funding required by existing laws rather than annual congressional votes

1099

is used to report various types of income other than wages, salaries, and tips

social security

provides benefits for people who are retired, disabled, or survivors of deceased workers

401(K)

a type of retirement savings plan offered by many employers that allow employees to contribute a portion of their paycheck before taxes are taken out.

A voluntary deduction to your retirement account

discretionary government spending

refers to government spending that congress can adjust each year, such as funding for education, defense, or transportation.

W-2

the form is provided by employees each year and shows the total wages earned and the taxes withheld for an employee

1040

is the standards federal income tax return used by individuals to file their annual taxes.

medicare

is a federal health insurance program that provides coverage for people age 65 and older and certain younger individuals with disabilities.

income taxes

the taxes collected by federal, state, and sometimes local governments on the money individuals and businesses earn

FICA

the Federal Insurance Contributions Act, which requires payroll taxes to fund Social Security and Medicare.

A mandatory deduction to pay for Social Security and Medicare

federal income tax

A mandatory deduction to pay for national government programs