| A | B |
|---|
| I-9 | a form used to verify the identity and employment authorization of individuals |
| EXEMPT | This is entered onto a W-4 when an employee is sure he/she will not earn enough money to have to pay taxes this year. |
| Regressive | Sales tax is an example of this kind of tax |
| W-4 | the form that allows the employer to calculate how much money to withhold from your paycheck |
| Progressive | Our current federal income tax is an example of this because the amount of tax paid rises as an individual’s income rises. |
| Proportional | This tax system is also referred to as a flat tax system |
| W-2 | a statement you receive from your employer telling how much money you earned during the year and how much money was withheld for taxes |
| local income tax | This tax helps pay for schools and county fire and police services |
| 1040 | The standard tax form filed at the end of the year to calculate your taxes owed and your taxes already paid. |
| 1040 EZ | The tax form filed at the end of the year if you earn less than $1000 and have no dependents |
| IRS | The agency that enforces tax laws and collects taxes |
| Congress | The group that decided on tax rates and laws |
| dependent | Most parents claim children as these until they are 18 or out of school |
| sales tax | a a state tax paid on items bought in a store |
| federal income tax | The main way our national government raises money for the military, transportation, health care etc. |
| state income tax | This is typically the lower of the two types of income tax withheld from an employees paycheck |
