Personal Finance

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What are taxes?

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Government fees on business and individual income, activities, products, or property.

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What is Medicaid?

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A government-run insurance program that provides healthcare assistance to low-income Americans.

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What is net pay?

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The amount people receive after taxes and other deductions are taken out.

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What is the IRS Form 1040?

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

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What is an exemption in tax terms?

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The set amount of money, per dependent, you can subtract from your taxable income.

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What is gross pay?

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The total amount of money earned before any deductions, such as taxes.

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What is Medicare?

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A federal health insurance program for people aged 65 and older, and for some younger people with disabilities.

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What is a W-2 form?

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A form that employers must send to their employees and the IRS at the end of the year, detailing wages and taxes withheld.

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What is a 1099 form?

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A form used to report income received from sources other than wages, salaries, and tips.

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What is a paycheck?

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A document that an employer gives to an employee as payment for work done.