TAXES Notebook page 30

Income -the payment people receive for Income -the payment people receive for providing resources in the market Wages - the income for providing human resources (labor) form of income people receive for work they do. Income tax - a tax on the amount of income people earn FICA is a tax or required contribution resulting from the Federal Insurance Contributions Act.

Taxes -. government fees on business and Taxes - government fees on business and individual income, activities, products or property Gross pay - the amount people earn per pay period before any deductions or taxes are paid Net pay - the amount people receive after taxes and other deductions are taken out

Form W-4 (Withholding Allowance Certificate) is a form that must be completed by employees before they start a job.

W4 Line 5 is where you write your withholding allowances. Usually a number between 0 and 7. Less chance of tax return. Greater chance of tax return. Lower # = more $ withheld Higher # = less $ withheld

Form W-2 is a form employers must provide to employees at the end of each year to report annual income and withholding for the employee's tax return.

1040 EZ Similar to the 1040 income tax form, 1040EZ is a faster and easier way to file your taxes. This form is only eligible for people with income less than $50,000 and interest income of $400 or less. PDF of 1040 EZ form http://www.irs.gov/pub/irs-pdf/f1040ez.pdf

John is a 16-year-old with his first job John is a 16-year-old with his first job. Here is his stub for his first two weeks of work.

federal government provided goods and service What are some goods and services that the federal government provides for citizens? state parks police protection federal government provided goods and service state troopers public education street lights national defense interstate highways national parks state roads fire protection

state government provided goods and service What are some goods and services that the state government provides for citizens? state parks police protection state government provided goods and service state troopers public education street lights national defense interstate highways national parks state roads fire protection

local government provided goods and service What are some goods and services that the local government provides for citizens? state parks police protection local government provided goods and service state troopers public education street lights national defense interstate highways national parks state roads fire protection

What are taxes? Taxes are government fees on business and individual income, activities, products or property. People are required to pay taxes.

What is FICA? FICA is a tax or required contribution resulting from the Federal Income Contributions Act.

What is income? Income is payment people receive for providing resources in the market.

What are wages? Wages are a form of income people receive for work they do.

What is net pay? Net pay is take-home pay; it's the amount received after taxes and deductions have been taken out.

What does FICA fund? FICA funds Social Security and Medicare.

What is gross pay? Gross pay is the amount people earn in a pay period before any deductions or taxes are taken out.

What is a W-4 form and for what is it used? A W-4 form is a form that must be completed by employees before they start a job. It is used by employers to determine the amount of income tax to withhold.

What is a W-2 form? A W-2 form is a form employers must provide to employees shortly after year-end to report annual income and withholding for the employee's tax return.

Who pays FICA? Both employees and employers pay FICA.