paying your taxes

paying your taxes

Term Definition
1040EZ The quick tax form most often used for those with uncomplicated tax situations
1099INT Report on interest income sent from the bank to both the IRS and the taxpayer for savings account interest
FICA The Federal Insurance Contributions Act
standard deduction The deduction allowed for those not claimed as a dependent on a parent’s taxes
tax deduction a donation or expense that reduces the taxable income amount.
tax refund A check returning the taxpayer’s money to the taxpayer after returns are filed and the overpaid tax is determined
W2 Report sent from the employer to both the IRS and the employee showing gross income
FEDERAL INCOME TAX The federal government charges income tax on all its residents
PROPERTY TAX Property taxes are taxes an owner pays on the value of any owned property
SALES TAX Many states charge sales tax
STATE INCOME TAX Most states charge income tax on all its residents
CAPITAL GAINS TAX The Capital Gains tax is a tax charged on the profits made on the sale of something that was purchased at a lower price

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