W2, W4, Form 1040 and Credit Card Terminology

Internal Revenue Service (IRS)

A United States agency that is responsible for the collection and enforcement of taxes.

head-of-household

A filing status that is used for the chief family member that pays more than half of the household expenses.

Form W4

A form that allows employers to determine what amount of income tax they should deduct from each employee's paycheck

credit card

A plastic card used to make purchases now and pay for them later.

Form W2

Form sent to employees at the end of the year that reports an employee's annual wages and the amount of taxes withheld from their paycheck

perjury

The telling of a LIE after having taken an OATH to tell the truth, usually in a court of law

card verification value (CVV)

Three numbers on the back of a credit or debit card. that are a security measure designed to prevent fraudulent use of the card by someone other than the cardholder.

exemption

a direct reduction taken from taxable income for a specific reason, as allowed by the IRS.

Social Security Number

a unique nine digit number issued by the federal government used to track a person's identity and how much they earn in their lifetime

tax refund

an amount that the government gives back to a taxpayer who has paid more taxes than were due

wages, compensation and tips

payments people receive for work they do, or for providing a service, which is sometimes found on the Form W2

credit card brand

represents the credit card COMPANY that MANAGES the card. Examples include VISA, MASTERCARD, DISCOVER, and AMERICAN EXPRESS

FICA (Federal Insurance Contributions Act)

taxes that fund Social Security and Medicare that are matched by your employer and are taken out of your paycheck

credit card hologram

the 3D image, usually in GOLD, that identifies a REAL card from a counterfeit (fake)

magnetic strip

the magnetic strip where customer information and is used when the card is swiped to record a transaction.