Economic Definitions-


Wage- A payment of money that you receive on an hourly, or daily basis.

Salary- Salary is a fixed compensation of money paid to a person for work.

1040- The basic form that you file annually with the IRS.

Income Tax- The main source of revenue to the federal government that is taken out of annual income.

Deduction- Expenses allowed by the IRS that reduces your taxable income.

Dependent- Someone you support that you claim as an exemption.

Exemption- A deduction from taxable income for you, your spouse, or your qualifying dependents.

Payroll Tax- A tax based on wages, tips, and salaries paid.

Medicare- The federal insurance program that funds medicare for people 65 and older, also for certain people that are disabled.

Social Security- Is a program of old-age, unemployment, or disability maintained by the U.S. government through payments by specific employer and employee groups.

Gross Pay- Total income before taxes are taken off of the income.

Net Pay- Total income after taxes are taken off of the income.

More Economic Definitions can be found here.