| A | B |
|---|
| withholding | taking payments out of your paycheck before you receive it |
| tax return | a form used to file income taxes |
| taxable income | a person's gross (or total) income minus exemptions and deductions |
| personal exemptions | set amounts that you subtract from your gross income for yourself, your spouse, and any dependents |
| deductions | variable amounts that you can subtract, or deduct, from your gross income |
| FICA | taxes that fund Social Security and Medicare |
| Social Security | Old-Age, Survivors, and Disability Insurance |
| Medicare | a national health insurance program that helps pay for health care for people over age 65 or with certain disabilities |
| estate tax | a tax on the estate, or total value of the money and property, of a person who has died |
| gift tax | a tax on money or property that one living person gives to another |
| tariff | a tax on imported goods |
| tax incentive | the use of taxation to encourage or discourage certain behavior |
