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Business Name |
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Vocabulary Review III |
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Income other than that gained from work performed—Dividends and Interest on Investment accounts for example. |
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IRS online e-file uses automation to replace most of the manual steps used to process paper returns. |
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withholding |
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e-file |
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unearned income |
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exempt |
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Earned Income |
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Free from withholding of Federal Income tax. Doesn’t exempt a person from paying other taxes, like a social security tax. |
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Money that must generally be reported on a tax return. |
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gross income |
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A person who relies on someone else for support. |
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dependent |
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Spending and income records and items to keep for tax purposes including paycheck stubs, statements of interest and dividends earned, and records of gifts, tips and bonuses. |
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financial records |
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Amounts that may be subtracted from earned income |
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deduction |
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A subtraction from income for interest paid on a student loan to a maximum of $2500 (2004). |
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Student loan interest deduction |
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Pay as you earn taxation—employers withhold taxes from the employee (your) paycheck. |
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Includes (your) employee wages tips and salaries.; Taxable income. |
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The amount borrowed, or the unpaid amount owing on a loan. Interest is calculated on the unpaid principal |
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The fee charged by a lender for the use of borrowed money. |