Shared Flashcard Set

Details

State & Federal Unemployment; Federal Income Tax
Business Math using Excel
10
Business
11th Grade
04/26/2012

Additional Business Flashcards

 


 

Cards

Term
Adjusted Gross Income (AGI)
Definition

Total income - total adjustments

Example:

$19,702.50 - $2,000.00=$17,702.50 (AGI)

Term
Adjustments to Income
Definition
Adjustments to your total income are current year moving expenses, Archer MSA contributions, IRA deductions, self-employment health insurance deductions, penalty for early withdrawal of savings, student loan interest listed on the 1040 form, one-half of self-employment tax, and alimony paid.
Term
Earned Income Credit
Definition
If you do not have any qualifying children, you earned less than $10,700, and you or your spouse were at least 25 years old and meet other qualifications or if you have one qualifying child and you earned less than $32,121, you may qualify for additional credit.  You must complete schedule EIC (earned income credit).
Term
Exemptions
Definition
The taxpayer is allowed one exemption per dependent. You may subtract a deduction of $3,000 from your taxable income in 2002 for each dependent.
Term
Federal Unemployment Tax Act (FUTA)
Definition
This tax helps fund the state's employment offices. It is set by Congress and can be as low as 0.8% or as high as 6.2% on the first $7,000 earnings per year for each employee.
Term
Itemized Deductions
Definition
Amounts subtracted from adjusted gross income before tax is computed. Deductions are listed on Schedule A. Examples of allowed deductions are on page 256-257.
Term
Standard Deduction
Definition
If you do not itemizeyour deductions, you may take a standard deduction - see page 257 for amounts.  Additional amounts are allowed if you or your spouse is blind and/or over the age of 65.
Term
State Unemployment Tax Act (SUTA)
Definition
This tax is levied on a certain portion of an employer's payroll on the basis of the gross wages paid to the employees. This tax helps fund what the state pays as unemployment compensation.
Term

Taxable Income

 

Definition
The amount of income subject to tax.
Term
Total Income
Definition
Includes all the income you receive, such as wages, salaries, tips, dependent care benefits, see page 257 for list.......
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