Taxation Personal Finance – Ch 9

Types of Tax  Payroll Tax  Sales Tax  Real Estate Tax  Gasoline Tax

Payroll Taxes  Tax Deductions  Federal  State  Local/City  FICA  Voluntary Deductions  Health Care  Retirement  Union Dues  Tithing/Charitable Contributions

1040 Form

Tax Forms  W-4  I-9  W-2  1040  1040EZ

W4  W-4  Withholding allowances

W4  Line 5 is where you write your withholding allowances.  Usually a number between 0 and 7. Higher # = less $ withheld Lower # = more $ withheld Less chance of tax return. Greater chance of tax return.

I9  I-9: Employment Eligibility Verification Form  INS – IRS form  Original identification  No exceptions

I-9

W-2  W-2: Wage and Tax statement  All earnings and taxation from an employer listed

1040 EZ  1040EZ  < $50,000 income  < $400 interest

Filing Taxes  Filing Status  Single  Married, Joint File  Married, Individual File  Head of Household  Widow/Widower w/ dependent child  Deductions  Standard  Itemized  Exemptions  Dependents  HAS & IRAs  Credits

Tax Rate  Tax Bracket  Marginal Rate  Effective Tax Rate