Tag: TERM

Gross Income Money, goods, services, and property a person receives that must be reported on a tax return. Includes unemployment compensation and certain scholarships. It does not include welfare benefits and nontaxable Social Security benefits.

Gasoline Excise Tax An excise tax paid by consumers when they purchase gasoline. The tax covers the manufacture, sale, and use of gasoline.

Form W-4, Employee’s Withholding Allowance Certificate Completed by the employee and used by the employer to determine the amount of income tax to withhold.

Formal Tax Legislation Process This is another term for a proportional tax.

Flat Tax This is another term for a proportional tax.

Financial Records Spending and income records and items to keep for tax purposes, including paycheck stubs, statements of interest or dividends earned, and records of gifts, tips, and bonuses. Spending records include canceled checks, cash register receipts, credit card statements, and rent receipts.

Filing Status Determines the rate at which income is taxed. The five filing statuses are: single, married filing a joint return, married filing a separate return, head of household, and qualifying widow(er) with dependent child.

File A Return To mail or otherwise transmit to an IRS service center the taxpayer’s information, in specified format, about income and tax liability. This information-the return-can be filed on paper, electronically (e-file).

Federal Insurance Contributions Act (FICA) Tax Provides benefits for retired workers and their dependents as well as for disabled workers and their dependents. Also known as the Social Security tax.

Federal Income Tax The federal government levies a tax on personal income. The federal income tax provides for national programs such as defense, foreign affairs, law enforcement, and interest on the national debt.