What is taxable income?. A person's total income minus exemptions and deductions.. What does social security pay for?. Old-age pensions to workers plus benefits to surviving family members of workers and to people who are disabled.. What is Medicare?. A national health insurance program that helps p
1. Why do employers withhold a set amount of your income? The income that is withheld pays a portion of your annual income tax payment so that you do not have to pay it in one lump sum and so the govt. can pay its bills throughout the year.
2. What is taxable income? A person’s total income minus exemptions and deductions.
3. What does social security pay for? Old-age pensions to workers plus benefits to surviving family members of workers and to people who are disabled.
4. What is Medicare? A national health insurance program that helps pay for health care for people over 65 and people with specific disabilities
5. What items are taxed for the purpose of changing behavior? Alcoholic beverages and tobacco are taxed to discourage their use; autos that get low gasoline mileage are taxed to encourage the purchase of fuel-efficient cars.
6. Tax Brackets 0 to $8,375 is 10%
$8,375 to $34,000 is 15%
$34,000 to $82,400 is 25%
$82,400 to $171,850 is 28%
$171,850 to $373,650 is 33%
$373,650 and above is 35%
7. Exemptions Set amount that you subtract from your gross income for yourself, your spouse, and any dependents
8. Unemployment taxes Paid for by employers for workers that are laid off no fault of their own and are actively looking for work