Tax

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

1040

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

1099

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

Allowances

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

Dependent

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

Effective Tax Rate

A federal law that requires an employer to withhold taxes from the wages they pay their employees; the funds go toward Social Security and Medicare

FICA

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

Filing Status

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

I-9

Type of taxes paid by employees to federal, state, and/or local government through a direct deduction from their paycheck

Income Tax

The tax bracket that your highest dollar of income falls into, and therefore the highest tax rate you pay

Marginal Tax Rate

A document attached to every paycheck that details your earnings and the amount withheld for taxes, health insurance, retirement funds, etc.

Paycheck Stub

Type of taxes that all employers must pay, based on a percentage of the employee's salary, toward social services such as Social Security and Medicare

Payroll Tax

Form that an employer must send to an employee and the IRS at the end of the year to report the employee's annual wages and taxes withheld from their paycheck

W-2

A form completed by an employee to indicate his or her tax situation (exemptions, marital status, etc.) to the employer, who then withholds the corresponding amount of taxes from each paycheck

W-4

The portion of an employee's wages that is not included in their paycheck because it goes directly to taxes

Withholding