Federal Taxes

The federal government levies a tax on personal income to provide for 

• national defense and law enforcement
• veterans and foreign affairs
• social programs like food and housing assistance and college grants
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FICA (Federal Insurance Contributions Act) taxes provide benefits for retirees. Another name for FICA is Social Security.

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The total amount of earnings before any deductions are taken out

• Gross Pay

• Net Pay

• After-tax Income

• Tax exempt Pay

Taking payments out of your pay before you receive it.

• withholding

• tax return

• taxable income

• personal exemption

Form used to file income taxes.

• withholding

• tax return

• taxable income

• tax credit

A persons gross (or total) income minus exemptions and deductions.

• taxable income

• tax credit

• income tax

• estate tax

Amounts that you can subtract, or deduct from your gross income

• tax deductions

• tax credit

• sales tax

• corporate taxes

An amount that you can subtract from the total amount of your income tax.

• personal exemptions

• tax deduction

• tax credit

• sales tax

Tax on the estate, or total value of money and property of a person who has died. Includes money, real estate, cares, furniture, investments, jewelry, paintings and insurance

• sales tax

• property tax

• estate tax

• gift tax

Tax on money or property that one living person gives to another.

• estate tax

• gift tax

• property tax

• income tax