EPF Unit Three Vocabulary: Income, Education, Career, and Taxes

Comprehensive vocabulary flashcards covering key terms related to income, higher education financing, career planning, and federal and state taxation for EPF Unit Three.

Subsidized Loans

Federal student loans for undergraduate students with financial need, where the U.S. Department of Education pays the interest while the student is enrolled in school at least half-time, during the grace period, and during deferment.

Unsubsidized Loans

Federal student loans available to undergraduate and graduate students regardless of financial need, where the borrower is responsible for paying all interest that accrues from the date of disbursement.

Pell Grants

Federal financial aid awarded to undergraduate students who demonstrate exceptional financial need, which does not typically need to be repaid.

Scholarships

Gift-aid financial awards given to students to assist with educational expenses based on academic achievement, athletic skill, financial need, or other criteria, requiring no repayment.

Cost of Attendance

The total estimated cost for a student to attend a college or university for an academic year, covering tuition, fees, room, board, books, supplies, and personal expenses.

GI Bill

A federal law providing educational benefits, training, and financial assistance to qualifying military veterans, active service members, and their eligible dependents.

529 Plan

A state-sponsored, tax-advantaged savings and investment vehicle designed specifically to help families save and pay for qualified education expenses.

Direct Plus Loan

Federal loans that graduate or professional students and parents of dependent undergraduate students can use to help cover college costs not met by other financial aid.

Gross Income

The total amount of income earned from all sources before any taxes, deductions, or withholdings are subtracted.

Co-Signer

An individual who signs a loan or credit agreement alongside the primary borrower and becomes legally responsible for repaying the debt if the primary borrower defaults.

Economic Mobility

The ability of an individual, family, or group to improve or change their socioeconomic status and income level over time or across generations.

Freelance

Self-employed contract work where an individual provides services to multiple clients or businesses on a project-by-project basis rather than being employed full-time by a single employer.

Commission

A form of variable compensation paid to an employee based on a fixed percentage or amount of sales or transactions they generate.

Unskilled Labor

Labor that requires minimal to no specialized training, technical skills, or advanced formal education to perform basic or routine tasks.

Skilled Labor

Labor that requires specialized education, advanced technical skills, professional certifications, or apprenticeship training to perform complex tasks.

Hard Skills

Specific, teachable technical abilities and factual knowledge that can be clearly defined, demonstrated, and measured, such as coding, accounting, or operating machinery.

Soft Skills

Non-technical, interpersonal abilities and character traits that govern how an individual works and interacts with others, including communication, teamwork, and problem-solving.

Gap Year

A period of time, typically lasting one academic year, taken as a break from formal education or career (commonly between high school and college) to pursue travel, work, or experiential learning.

Return on Investment

A financial performance metric used to evaluate the efficiency or profitability of an investment relative to its initial cost, often calculated as net profit divided by initial cost.

1040 Form

The standard IRS tax form used by individual taxpayers in the United States to file annual personal federal income tax returns and calculate their tax liability or refund.

W-4 Form

An IRS form completed by an employee to inform an employer of their tax situation, which determines the specific amount of federal income tax to withhold from each paycheck.

W-2 Form

An official tax statement provided by an employer to each employee and the IRS showing the employee's total annual earnings and the exact amounts of taxes withheld during the year.

Tax Return

A formal document or set of forms filed with a government tax authority reporting income, allowable deductions, and tax obligations to establish whether taxes are owed or a refund is due.

NC-40

The individual estimated income tax form used in North Carolina to make quarterly estimated state income tax payments on income that is not subject to payroll withholding.

Net Pay

The remaining amount of an employee's earnings after all taxes, mandatory payroll deductions, and voluntary withholdings have been deducted from gross pay (take-home pay).

Tax Deduction

A qualified expense or reduction subtracted from gross income that lowers the overall amount of income subject to taxation.

Tax Audit

An official formal inspection and review of an individual's or organization's accounts, financial records, and tax returns by the IRS or a state taxing authority to verify compliance.

Tax Bracket

A specific range of taxable income levels subject to a particular marginal tax rate under a progressive tax system.

Tax Dependent

A qualifying individual (child or relative) who relies on a taxpayer for primary financial support, allowing the taxpayer to claim specific exemptions, deductions, or credits.

Marginal Tax Rate

The percentage of tax levied on the highest or next additional dollar of taxable income earned, corresponding to the top tax bracket reached.

Tax Credit

A direct dollar-for-dollar reduction subtracted from the total amount of tax owed, providing a greater tax benefit than an equivalent deduction.

Payroll Taxes

Taxes withheld directly from an employee's salary or wages by an employer, primarily used to fund public social insurance programs including Social Security and Medicare.

Federal Insurance Contributions Act

A U.S. federal law (FICA) establishing a dedicated payroll tax that funds the Social Security and Medicare programs through contributions made by both employees and employers.