1. Understanding your Paycheck

2. What information in on a pay stub?
Gross wages- how much you earn before taxes and other deductions
Net wages- amount left after deductions

3. What information in on a pay stub?
Payroll taxes- taken by federal and state government.
Other deductions:
Local taxes
Contribution to health insurance
Retirement plans
Union dues
FICA: Federal Insurance Contribution Act- deductions to support retirement plans like Medicare and Social Security

4. Paying Your Taxes

5. How do I pay taxes? In your check, taxes are deducted
You also say a sales tax every time you buy something
You pay an excise tax on tobacco, alcohol, gasoline, and other luxury items
You pay property taxes if you own a home

6. How do you file your income taxes?
If you earn more than $4,000 a year, you have to file taxes
Select an appropriate filing category
Single, head of house, married and filing jointly, or married filing separately
Select the appropriate form
1040EZ, 1040

7. What are my deductions?
An employer provides a W-2 stating earnings and deductions. (if your employer does not give you one by January 31st, report them to the IRS)
Possible Deductions:
$ in a IRA (individual retirement plan)
Medical expenses more that 7.5% of your income
Charitable donations
Work related expenses
Interest paid
Children or other dependents

8. You can mail a paper copy Send it electronically
How do I send in my taxes?
You can mail a paper copy
Send it electronically
They must be postmarked by midnight April 15th!!!