Unit 7 Quiz- Taxes Key terms

The standard Internal Revenue Service (IRS) form that individuals can use to file their annual income tax returns

Form that details all "non-employee" compensation, including for specific jobs like freelancers or contractors

Employee-claimed exemptions on the W-4 to determine how much of an employee's pay to withhold from his or her paycheck for taxes

An inspection of a filer's tax return by the IRS

Profit from the sale of an asset, such as a stock or a bond, calculated by subtracting the price you initially paid from the price you then sold it for

A percentage of profits paid by a business to the federal and state government

Someone you financially support who can be "claimed" on a tax return to reduce your taxable income and lower your taxes

Spending by the federal government determined by legislative action and approved through votes by elected officials

Money from the profits of a company that is paid out to its shareholders, typically on a quarterly basis

The actual rate you pay on your taxes, as a percentage of your overall income

A tax paid on purchases of a specific good, like gasoline or cigarettes

The set amount of money, per dependent, you can subtract from your taxable income

A category that defines the type of tax return an individual will use, primarily based on marital status; it also determines the size of your tax brackets and how much of your income is taxed at each rate

Form used by an employer to verify an employee's identity and to establish that the worker is eligible to accept employment in the United States

Taxes paid by employees to federal and state government through a direct deduction from their paycheck