Module 5.1 Vocab

Progressive Taxes

A progressive tax is a tax in which the tax rate increases as the taxable amount increases.

Property Tax

A property tax (or millage tax) is a levy on property that the owner is required to pay.

Proportional Taxes

A proportional tax is a tax imposed so that the tax rate is fixed, with no change as the taxable base amount increases or decreases.

Regressive Taxes

A regressive tax is a tax imposed in such a manner that the tax rate decreases as the amount subject to taxation increases.

Federal Income Tax

A tax levied by the United States Internal Revenue Service (IRS) on the annual earnings of individuals, corporations, trusts and other legal entities. Federal income taxes are applied on all forms of earnings that make up a taxpayer's taxable income, such as employment earnings or capital gains.

Road Tolls

A toll road, also known as a turnpike or tollway, is a public or private roadway for which a fee is assessed for passage.

W-4

An employee completes an IRS W-4 form, or an Employee's Withholding Allowance Certificate, to indicate his tax situation to the employer.

Excise Tax

An excise or excise tax (sometimes called a special excise duty) is an inland tax on the sale, or production for sale, of specific goods or a tax on a good produced for sale, or sold, within a country or licenses for specific activities.

Federal Insurance Contribution Act (FICA) or Social Security

Federal Insurance Contributions Act tax /ˈfaɪkə/ is a United States federal payroll tax imposed on both employees and employers to fund Social Security and Medicare—federal programs that provide benefits for retirees, the disabled, and children of deceased workers.

Food Tax

Food Tax Rate Reduction. Food purchased for home consumption is taxed at the reduced rate of 2.5 percent (1.5 percent state, 1 percent local).

1040 Tax Form

Form 1040, U.S. Individual Income Tax Return, is one of three forms - 1040 (the "Long Form"), 1040A (the "Short Form"), and 1040EZ (the "Easy Form") - used for personal federal income tax returns filed with the IRS. The first Form 1040 was published for use for the tax years 1913, 1914, and 1915. For 1916, Form 1040 was converted to an annual form (i.e., updated each tax year with the new year printed on the form).

1040EZ Tax Form

Form 1040EZ ("Easy Form"), Income Tax Return for Single and Joint Filers With No Dependents, is the simplest, six-section Federal income tax return, introduced in 1982.

760 Tax Form

Form 760 is the general income tax return for Virginia residents; it can be e-filed or filed by mail.

Direct Deposit

In banking, a direct deposit (or direct credit) is a deposit of money by a payer directly into a payee's bank account.

Public good

In economics, a public good is a good that is both non-excludable and non-rivalrous in that individuals cannot be effectively excluded from use and where use by one individual does not reduce availability to others.

Adjusted Gross Income (AGI)

In the United States income tax system, adjusted gross income (AGI) is an individual's total gross income minus specific deductions.

Withholding

Income tax withheld from employees' wages and paid directly to the government by the employer.

1099INT Tax Form

Interest Income - Form 1099-INT is used to show interest income that you earned during the tax year.

Medicare Tax

Medicare taxes affect income and investments, and what you can do to help manage those taxes.

Taxable Income

Taxable income refers to the base upon which an income tax system imposes tax.

Estate Tax

The Estate Tax is a tax on your right to transfer property at your death.

W-2

The W-2 form is the form that an employer must send to an employee and the Internal Revenue Service (IRS) at the end of the year.

Gift Tax

The gift tax is a tax on the transfer of property by one individual to another while receiving nothing, or less than full value, in return.

Gross Pay

The total of an regular remuneration including allowances, overtime pay, commissions, and bonuses, and any other amounts, before any deductions are made.

Wages

a fixed regular payment, typically paid on a daily or weekly basis, made by an employer to an employee, especially to a manual or unskilled worker: Compare with salary.

Sales Tax

a tax on sales or on the receipts from sales.

Exempt

free from an obligation or liability imposed on others.

Dependent

requiring someone or something for financial, emotional, or other support.

Deduction

the action of deducting or subtracting something.

Allowance

the amount of something that is permitted, especially within a set of regulations or for a specified purpose.

Tourism Tax

tourist tax. Slang or informal. A government levy on hotel rooms and other lodgings, usually but not always earmarked to fund local or state tourism marketing entities.