Tax Terms

Question 1

Total amount you earn before any deductions are subtracted

Answer 1

Gross Pay

Question 2

Amounts subtracted from your gross pay

Answer 2

Deductions

Question 3

Amount left after all deductions are taken out of gross pay

Answer 3

Net Pay

Question 4

Time worked beyond the regular hours

Answer 4

Overtime

Question 5

Money collected by a government from its citizens for the purpose of operating the government

Answer 5

Tax

Question 6

Government body that carries out the federal tax system

Answer 6

Internal Revenue Service (IRS)

Question 7

Tax-filing group based on your marital status as of the last day of the year

Answer 7

Filing Status

Question 8

Amount subtracted from income for each person who depends on your income to live

Answer 8

Exemption

Question 9

Person who lives with you and whom you pay more than half of living expenses

Answer 9

Dependent

Question 10

money you earned from working

Answer 10

Earned Income

Question 11

Money earned from passive activity (other than working)

Answer 11

Unearned Income

Question 12

payments made by individuals to the Federal Government based on income received

Answer 12

Income Tax

Question 13

Figured by taking the total income and deducting certain allowable amounts

Answer 13

Adjusted Gross Income (AGI)

Question 14

What are the 5 filing Statuses?

Answer 14

Single
Married Filing Jointly
Married Filing Separately
Head of Household
Widow or Widower

Question 15

Does Tennessee have State income tax?

Answer 15

NO

Question 16

Who gives you your W-2?

Answer 16

Your Employer

Question 17

What does a W-4 tell the employer?

Answer 17

An employee’s filing status

Question 18

What is a 1040?

Answer 18

A form used by U.S. tax payers to file their annual income tax return