| A | B |
|---|
| 1040EZ | The quick tax form most often used, in paper or online, 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 |
| 1099MISC | Report of income made to the IRS and the taxpayer for any money paid by the job, instead of as a salaried employee. |
| FICA | Short for Federal Insurance Contributions Act, the name given on the paycheck stub for Social Security and Medicare taxes. The employee pays some of the FICA tax, and the employer pays some of this tax for each employee. Social Security pays benefits for older people, people with disabilities, and minor children and surviving spouses of deceased workers. Medicare pays for hospital insurance for those over 65. |
| Gross Income | The total income, before deductions, made in a year |
| Income Tax | Tax paid to the state, federal, and local governments based on income earned over the past year |
| Standard Deduction | The amount of deduction given for those not claimed as a dependent on a parent's taxes. |
| Tax Audit | A review of a tax return by the IRS in which the taxpayer must show proof of all deductions, expenses, and income |
| Tax Deduction | A donation or expense that reduces the taxable income amount. |
| Tax Exemption | A number that includes the taxpayer and any dependents. Because most teens are listed as dependents on their parents' taxes, their tax exemption is 0 |
| Tax Refund | A check returning the taxpayer's money to the taxpayer after tax returns are filed and the overpaid tax is determined |
| Tax Table | The table in the 1040EZ booklet showing levels of income on one side and the tax owed on the other side |
| W2 | Report sent from the employer to both the IRS and the employee, showing gross income, total taxes paid, and total voluntary deductions |
| W4 | The withholding form each new employee fills out, stating the number of exemptions. The more exemptions listed, the less withholding tax will be taken from the paycheck |
