| A | B |
|---|
| calculation | n. computation; estimate |
| deadline | n. a time by which something must be finished |
| file | v. to enter into public record |
| fill out | v. to complete |
| give up | v. to quit; to stop |
| joint | adj. together; shared |
| owe | v. to have a debt; to be obligated to pay |
| penalty | n. a punishment; a consequence |
| preparation | n. the act of making something ready |
| refund | n. the amount paid back // v. to give back (money) |
| spouse | n. a husband or wife |
| withhold | v. to keep from; to refrain from |
| April 15th | the date that all US citizens / residents must file their taxes by; the deadline for taxes to be filed in the US (We file our taxes a couple of months before the April 15th deadline.) |
| deduction | n. an amount that may be deducted from the taxes owed (We have quite a few deductions on our tax forms, such as $250 for teacher supplies, $2000 for travel expenses and $100 for telephone fees.) |
| net salary | n. a salary after the deductions (health insurance, taxes, retirement fund...) have been subtracted (My gross salary is $50,000, and I have $15,000 in yearly deductions, so my net annual salary is $35,000.) |
| gross salary | n. a salary before any deductions have been subtracted. (My gross salary per year is $50,000, but I only get $35,000 after all the deductions have been made.) |
| 1099 form | The IRS Form 1099 is used to report a variety of unique income payments to the IRS. This form is usually used when the taxpayer has received income from other sources besides a wage-paying job. (My husband's main job is teaching for which he receives a W-2 form; his part-time job is soccer coaching. He receives a 1099 form that shows his earnings for this job. He doesn't have any taxes taken out for soccer coaching as he is freelance, so the amount shown on the 1099 is his gross salary.) |
| W-2 form | The Form W-2, Wage and Tax Statement, is used to report wages paid to employees and the taxes withheld from them. Employers must complete a Form W-2 for each employee to whom they pay a salary, wage, or other compensation as part of the employment relationship. (My husband receives his W-2 form in January or February. It shows his gross salary, net salary, taxes paid and other deductions for the previous year.) |
| estimated taxes | n. taxes paid to the IRS 4 times a year by freelance workers, as they don't have an employer who pays the taxes automatically. (I am a freelance worker, therefore, I have to make estimated tax payments 4 times a year (April, July, October, January). They are "estimated" as I don't know the exact amount I owe until I go to my tax preparer in February or March. She figures out all my deductions and what my net salary should be. Then, I will know if I have paid enough taxes or if I have underpaid. |
| the IRS | The Internal Revenue Service - the federal department we have to pay our taxes to |
