F

  • Federal Insurance Contributions Act (FICA)

    This is Social Security Tax. FICA consists of Social Security (supplemental retirement income) payroll tax and a Medicare (hospital insurance) tax. The tax is levied on employers, employees, and certain self-employed individuals. On some pay stubs it may be listed as some form of Old Age Survivors and Disability Insurance (OASDI).

 

  • Federal Tax Deposit (FTD)

    An employer must deposit employment taxes withheld (income tax withholding and FICA taxes) including the employers share of the FICA, either monthly or semi-weekly (depending on the amount of tax withheld) with an authorized commercial bank or Federal Reserve Bank.

 

  • Federal Unemployment Tax Act (FUTA)

    A Federal tax paid by employers that provide for the administrative costs of a states unemployment compensation program for workers who have lost their jobs through no fault of their own. Only the employer pays FUTA tax, it is not deducted from the employees wages. This annual tax is reported on Form 940.

 

  • Form 1040

The form used for individuals to file a tax return. Two simplified versions of this form, 1040EZ and 1040A, exist for individuals with relatively easy tax returns. The 1040 form has six sections that taxpayers commonly use:

Schedule A – Describe itemized tax deductions. Individuals taking the standard deduction do not need to use Schedule A.

Schedule C – Describes tax deductions from self employment. Self-employed individuals may write off many business expenses as long as they can prove that those expenses were used for their business.

Schedule D – Describes capital gains and losses. A physical asset sold for a profit is a capital gain, and an asset sold for a loss is a capital loss.

Schedule E – Describes income or loss from an estate, trust, royalty, real estate rental, S-Corporation or partnership.

Schedule F – Describes tax deductions from farming income and expenses. This form is very similar to Schedule C.

Schedule SE – Describes the amount of taxes a self-employed individual must pay based on his income. Generally, income tax from self-employed individuals is due quarterly.