W-2, 1099, 1040, standard deduction, tax brackets, withholding, credits vs deductions.
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- What does a W-2 form report?
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Wages and taxes withheld from an employee's paychecks during the year- What does a 1099 form report?
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Income from self-employment, freelance work, or other non-employee sources- What is the 1040 form?
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The main federal individual income tax return form filed annually- What is the standard deduction?
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A fixed dollar amount that reduces your taxable income based on filing status and age- How do tax brackets work?
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Different portions of income are taxed at progressively higher rates; not your entire income at one rate- What is tax withholding?
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Taxes automatically taken from paychecks and sent to the government throughout the year- What is a tax credit?
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A direct dollar-for-dollar reduction of the amount of tax you owe- What is a tax deduction?
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An amount subtracted from your income to reduce your taxable income- How does a tax credit differ from a tax deduction?
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A credit reduces tax owed directly; a deduction reduces the income that gets taxed- What is your filing status on a tax return?
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Your tax category, such as single, married filing jointly, or head of household- What is taxable income?
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The income amount used to calculate your tax liability after adjustments and deductions- What does AGI stand for?
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Adjusted Gross Income; your gross income minus certain deductions- What is the typical federal tax filing deadline?
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April 15 of the year following the tax year- What is a tax dependent?
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A person you support financially and claim on your tax return for a tax reduction- Can you claim both the standard deduction and itemized deductions on the same return?
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No, you must choose one or the other for each tax year
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