Family Project Day 3

Family Project Definitions

1. Salary – Fixed compensation for services, paid to a person on a regular basis.
2. Wage – Payment for labor or services to a worker, especially remuneration on an hourly, daily, or weekly basis or by the piece.
3. 1040 – The basic form you file annually with the IRS.
4. Income Tax - The main source of revenue for the federal government and many states.
5. Deductions - Expenses allowed by the IRS that reduce your taxable income.
6. Dependent – Someone you support who you can claim as an exemption.
7. Exemption – A deduction from taxable income for you, your spouse, and your qualifying dependents.
8. Payroll Tax – A tax based on wages, tips, and salaries paid. Part of the tax is deducted from the employee’s pay, and the employer pays the rest.