TAX 2026 ASSESSMENT SHEET
STRUCTURED TAX LAW AND
CALCULATION COMPENDIUM
◉ Taxable Income
Answer: The amount of income that is used to calculate an
individual's or a company's income tax due. Taxable income is
generally described as gross income or adjusted gross income minus
any deductions, exemptions or other adjustments that are allowable
in that tax year.
◉ Marginal Tax Rate
Answer: The tax bracket that your last dollar of income falls into,
and therefore the highest tax rate you pay.
◉ Effective Tax Rate
Answer: The actual rate you pay on your taxes, as a percentage of
your overall income.
◉ Standard Deduction
Answer: The standard deduction is a dollar amount that reduces
your taxable income.
, ◉ W-4
Answer: A form completed by an employee to indicate his or her tax
situation (exemptions, status, etc.) to the employer. The W-4 form
tells the employer the correct amount of tax to withhold from an
employee's paycheck.
◉ I-9
Answer: Form used by an employer to verify an employee's identity
and to establish that the worker is eligible to accept employment in
the United States.
◉ W-2
Answer: Form that an employer must send to an employee and the
IRS at the end of the year. The W-2 form reports an employee's
annual wages and the amount of taxes withheld from his or her
paycheck.
◉ 1099
Answer: Form that details all "non-employee" compensation. This
includes income for completing specific jobs, like freelancers or
contractors who are effectively self-employed.
◉ 1040
Answer: The standard Internal Revenue Service (IRS) form that
individuals use to file their annual income tax returns.
STRUCTURED TAX LAW AND
CALCULATION COMPENDIUM
◉ Taxable Income
Answer: The amount of income that is used to calculate an
individual's or a company's income tax due. Taxable income is
generally described as gross income or adjusted gross income minus
any deductions, exemptions or other adjustments that are allowable
in that tax year.
◉ Marginal Tax Rate
Answer: The tax bracket that your last dollar of income falls into,
and therefore the highest tax rate you pay.
◉ Effective Tax Rate
Answer: The actual rate you pay on your taxes, as a percentage of
your overall income.
◉ Standard Deduction
Answer: The standard deduction is a dollar amount that reduces
your taxable income.
, ◉ W-4
Answer: A form completed by an employee to indicate his or her tax
situation (exemptions, status, etc.) to the employer. The W-4 form
tells the employer the correct amount of tax to withhold from an
employee's paycheck.
◉ I-9
Answer: Form used by an employer to verify an employee's identity
and to establish that the worker is eligible to accept employment in
the United States.
◉ W-2
Answer: Form that an employer must send to an employee and the
IRS at the end of the year. The W-2 form reports an employee's
annual wages and the amount of taxes withheld from his or her
paycheck.
◉ 1099
Answer: Form that details all "non-employee" compensation. This
includes income for completing specific jobs, like freelancers or
contractors who are effectively self-employed.
◉ 1040
Answer: The standard Internal Revenue Service (IRS) form that
individuals use to file their annual income tax returns.
