1. TAXES
Notebook page 30

2. 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.

3. 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

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

5. 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

6. 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.

7. 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

8. 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.

12. 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

13. 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

14. 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

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

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

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

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

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

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

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

22. 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.

23. 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.

24. Who pays FICA?
Both employees and employers pay FICA.