Federal Taxes

Definitions:

Withholding - money taken out of your paycheck before you get it

Taxable Income - the amount of your income that can be taxed after deductions

Tax Date - taxes are due April 15

Standard Deduction - the amount of your income protected from income tax

Tax Return - a form used to file income taxes

Gross Income - income before taxes

Net Income - the money you have after taxes

Tax Deductions - amounts subtracted from gross income (medical expenses, charitable donations)

Tax Credit - amounts you can subtract from your income tax (child care, college tuition)

U.S. Corporate Income Tax - 21% of profits; previously 35%

FICA - Social Security + Medicare; for the elderly

Unemployment Tax - paid by employers; 60% of avg. weekly earnings

Excise Tax - general revenue tax on a good

Estate Tax (Death Tax) - the tax on the total value of money + property of someone who has died

Tariffs - taxes on imported goods; keeps American products competitive

Tax Incentive - using taxation to dis/encourage behavior

Notes: