1. INCOME TAXES

2. Terms • Gross Income • Net Income

3. Payroll taxes • Based on payroll of business • Federal government receives largest part of revenue

4. Income Taxes • Pay on most types of income • Based on each taxpayer’s financial and family situation

5. Form W-4 Provides information your employer needs to determine the proper amount to withhold from your paycheck

6. Terms • Allowance • Internal Revenue Service • Tax Return • W-2

7. Tax Forms • 1040 • 1040A • 1040EZ

8. Qualifications 1040EZ • Single or married filing jointly with spouse • No dependents • Under 65 • Not blind • Made less than $50,000 • $400 or less in interest • Only income was wages, tips, interest, scholarships, unemployment compensation

9. Sections 1040EZ • Name, address, social security number • Wages, taxable interest, unemployment • Federal income tax withheld, earned income credit