Personal Finance (Taxes Unit)
*Net Pay
Amount of income left after taxes and deductions have been taken out.
*Allowance
An exemption that reduces how much income tax an employer deducts from an employee's paycheck
*Tax Deduction
An expense, such as a charitable contribution, that can be deducted from one's taxable income
*Personal Property Tax
Annual tax imposed on certain personal property, such as cars or boats and based on the value of the property.
*FICA
Federal Insurance Contributions Act
*Tax Return
form used to file income taxes
*Sales Tax
A tax on a sale of merchandise or services
*Income Tax
A tax on people's earnings
*Real Estate Tax
a tax imposed on a home or other real estate in the county where the property is located
*Taxable Income
income on which tax must be paid; total income minus exemptions and deductions
*Tax-Exempt Income
income that is not taxed
*Tax Deferred Income
income that is taxed at a later date
*Gross Pay
the total amount of an employee's earnings before deductions are taken out
*Tax Liability
the total amount of taxes owed