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Chapter 1 Wages Income and Taxes

Horizontales
Gross income minus allowable reductions
Income from personal services
Income that is not received for services
Gain derived from capital
Amounts that may be subtracted from income that is otherwise taxable
6.2% held out of your check up to $118,500
Adjusted gross minus deductions exemptions
Verticales
Advance payment of taxes due taken out of paycheck
Refundable or nonrefundable deductions from tax liability
Are wages subject to social security tax
1.45% taken out of your check 2.9% for self employed
What you owe to the IRS before payments and after credits
IRS documents used to report various types of income
All worldwide income that is subject to tax
A amount allowed per person that reduces the taxable amount