| A | B |
|---|
| Income | Any money coming in. |
| Gross Income | The total amount of income from your wages or salary before payroll deductions. |
| Payroll Deductions | The amounts subtracted from gross income, which results in your net income. |
| Taxes | Fees placed on income, property, or goods to support government programs. |
| Federal Income Taxes | A fee for the support of federal government programs and is a payroll deduction collected by the employer each pay period and paid to the Internal Revenue Service (IRS). |
| State Income Taxes | A fee for support of state programs collected by your employer and paid to the state revenue department. |
| Social Security Taxes | A fee collected from most employees to fund a federal program, which provides old age survivors, and disability insurance. |
| Medicare Taxes | A fee collected from most employees to fund the hospital insurance for old age people and their survivors. |
| Net Income | Your "take-home pay." |
| W-4 | A federal government form that tells your employer how much to withhold from your paycheck for taxes. |
| W-2 | A form given to you from your employer by January 31st of every year showing you a summary of all of your earnings for the year. You file this summary with your income taxes by April 15th of each year. |
