Ch. 9.1 FEDERAL INCOME TAX: PAYING THE PRICE Whether or not we agree with how our tax dollar is spent, most of us would not want to do without at least.

Slides:

Advertisements

Similar presentations

Taxes are what we pay for civilized society Oliver Wendell Holmes Jr., 1904.

Advertisements

16. Financing the Government.. Taxes. Nontax Revenues and Borrowing.

The 1040 EZ. Read the Tax Process article In your notebook, design a graphic that represents the income tax process Share with a neighbor, then merge.

Taxes and You  DO NOW Seven Minutes  Grapple: Why should we pay taxes and how much should we pay?  Essential --- What benefits do we receive from paying.

Chapter 23 Taxes and Social SecuritySucceeding in the the World of Work 23.1 All About Taxes SECTION OPENER / CLOSER INSERT BOOK COVER ART Section 23.1.

Where did all that money go?.  Objectives: ◦ Understand payroll taxes and withholdings. ◦ Be able to analyze a paycheck stub and W-4.

TAXES By Stevie VanDeVelde.

0 Finish W4 and I9 if not completed… Personal Finance Unit 4 Chapter 12 © 2007 Glencoe/McGraw-Hill.

Income Taxes: How To File

Business Math 2.3 Federal Income Taxes.

“In this world, nothing is certain but.... death and taxes”

Income and Taxes.  Salary – set amount of money earned by an employee per year or other fixed length of time  A portion of the salary is paid at regular.

©2008. Oklahoma State Department of Education. All rights reserved.1 Taxes: Somebody has to Pay Standard 2.2.

©The McGraw-Hill Companies, Inc. 2008McGraw-Hill/Irwin Chapter 1 Introduction to Taxation, the Income Tax Formula, and Form 1040EZ “Taxes, after all, are.

Chapter 01 Introduction to Taxation, the Income Tax Formula, and Form 1040EZ “Taxes, after all, are dues that we pay for the privileges of membership in.

“NOTHING IS CERTAIN IN LIFE BUT DEATH AND TAXES” Economics Ms. Whitlow.

 5.1 Taxes and Your Paycheck.  Payroll Tax  Income Tax  Federal Insurance Contribution Act (FICA)  Withholding  Gross Income  Net Income  Form.

 Taxes are expenses that you pay everyday that are used by the local, state and federal government to provide important services such as: police and.

16th Amendment to US Constitution The Congress shall have power to lay and collect taxes on incomes, from whatever source derived, without apportionment.

“Taxes are what we pay for civilized society” Oliver Wendell Holmes Jr., 1904.

Budgeting “Pay Yourself First”. Personal Budget Working Tool Take Control Directs flow of cash received towards financial goals Must be Flexible! Takes.

The “ability to ___ principle” is an accepted principle of tax fairness. Pay.

© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

TAXES: The main source of government revenue The Economics of Taxation  In addition to creating revenue for the government, taxes also impact the economy.

Income and Taxes. So…  You graduated high school and college…  You achieved a degree…  You have a solid resume…  You rocked on your interview…  And.

INCOME TAXES (How much will you keep?)

Chapter 7 Federal Income Tax “In the world nothing can be said to be certain but death and taxes.” - Ben Franklin.

Chapter 2, Sec. 2-2 Federal Income Taxes.

Unit 1 “Income Taxes and Filing a Tax Return”

FEDERAL INCOME TAXES Just the basics…... Filing status Single Married – joint filing Married – separate filing Head of household – meet conditions, can.

WAGES AND INCOME TAX ( How much will you keep?). Employment Classifications Full-Time Full access to benefits & better pay Part-Time Fewer hours – benefits.

© 2010 South-Western, Cengage Learning SLIDE 1 Chapter 7 Do Now9/26/13 & 9/27/13 Work with your neighbor and create a list of ways people accumulate earned.

Chapter 7 Federal Taxes What is this picture depicting?

Ch. 14: Taxes and Government Spending. Section 1: What Are Taxes? “Nothing in life is certain but death and taxes.” - Benjamin Franklin.

TAXES: The main source of government revenue …nothing is certain, but death and taxes. B. Franklin …nothing is certain, but death and taxes. B. Franklin.

 5.1 Taxes and Your Paycheck.  Payroll Tax  Income Tax  Federal Insurance Contribution Act (FICA)  Withholding  Gross Income  Net Income  Form.

Income Taxes Tax evasion: failure to pay taxes or a deliberate underpayment of taxes (this is an illegal activity) Tax avoidance:actions taken to lessen.

Ch. 25 Section 1 The Federal Government. Preparing the Budget Each year, the President and Congress are responsible for creating the federal budget –

Chapter 16 Financing Government. Power to Tax  Congress is given the power to tax by the Constitution.

Chapter Work Related Forms and Laws Ms. Dinnella.

TAXES: The Main Source of Government Revenue Economics for the 21 st Century.

1.A tax exemption allows you to reduce your adjusted gross income and thus gives you savings on your tax owed. 1. Retirement savings can be counted as.

Money Management Federal Income Tax Chapter Seven Notes ____________________________ are collected from the citizens and businesses. The money collected.

GOALS BUSINESS MATH© Thomson/South-WesternLesson 2.3Slide 1 2.3Federal Income Taxes Calculate adjusted gross income and taxable income Calculate the income.

CHAPTERS 6-7 TAXES AND YOUR PAYCHECK. LEARNING TARGETS Students can ……. 1.Explain the purpose behind payroll and other taxes. 2.Identify and define the.

PAYDAY! “Nothing is certain but death and taxes.” -Benjamin Franklin.

Paying Taxes Chapter 6.

Taxes. 5.1 – Taxes and Your Paycheck Payroll taxes Based on earnings Paid to government by you and employer Income taxes You pay on income you receive.

HOW MUCH OF YOUR INCOME WILL YOU KEEP? TAXES. PAYROLL TAXES The federal government receives the largest part of its revenue from payroll taxes. Placed.

Bellwork 12/14/15  Define the last few words on your vocabulary sheet.  They can be found in Ch.9 Taxes  You have 10 minutes….

Write This Down Tax Returns Who has to file tax return by 4/15/2014? FederalState Only if you made more than certain amount in 2013 Living w/ parents Single,

Chapter 5 Taxes.  Payroll Taxes ◦ Largest part of government revenue ◦ Based on employee total earnings ◦ Paid by you and your employer ◦ Include income.

1 Vocab/Definitions WS. What’s the Problem? Teens don’t understand how TAX applies to them Most forfeit a refund!!! 2 Is this you???

© 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Chapter 14 Taxes and Government Spending. Section 1: What are Taxes? Tax: required payment to a local, state, or national government What is tax money.

We Need Taxes For….. National Defense Police and fire protection Health services Public Education Water, gas and electric systems Environmental protection…

Taxes and Your Paycheck Career and Financial Management 2.

Taxes Gov’tForms Deductions.

Why It’s Important Budgeting techniques help you keep track of where your money goes so that you can make it go further.

GETTING PAID WHERE DOES MY MONEY GO?. PAY CHECK DEDUCTIONS Deductions Video What is the difference between gross and net income? What are state taxes.

Paying Taxes Essential Question: Why is paying taxes important and how does it affect an individual’s financial plan? Chapter 6.

Paycheck Tax Deductions Lesson 3-1. What is the Definition of Tax? Compulsory charges imposed on citizens by local, state, and federal government.

Paying Taxes. Amendment XVI – US Constitution The Congress shall have power to lay and collect taxes on incomes, from whatever source derived, without.

JOURNAL 3/8/2016 What are taxes? How are they used? Name one way in which people paying their taxes has influenced your life today.

Topic 8: Taxes & Spending. Can & should government be fair to everyone? ● Fairness is a value all people in the United States cherish. When it comes to.

Taxes. Taxes and Your Paycheck Payroll taxes Payroll taxes Based on earnings Based on earnings Paid to government by you and employer Paid to government.

Income and Deductions. If you have a job now, do you actually take home every dollar that you earn?  No. An average of 31% is deducted from your gross.

TAXES Are taxes necessary in society? How do taxes impact our lives

Chapter 16 Financing Government

Principles of Business, Marketing and Finance

Presentation transcript:

Ch. 9.1 FEDERAL INCOME TAX: PAYING THE PRICE Whether or not we agree with how our tax dollar is spent, most of us would not want to do without at least some of the services that our federal, state, and local governments provide

Federal Income Tax Taxes are one of the largest items in the family budget. The average taxpayer works every year from January 1 to around early May just to cover tax obligations. However, most of the tax that we pay never goes through our hands; our employer withholds some of our pay for taxes and sends that withheld money directly to the Internal Revenue Service (IRS).

9.1 Finding Your Income Tax The price of government Taxes are what we pay for a civilized society Oliver Wendell Holmes, Jr. In this world nothing is certain but death and taxes Benjamin Franklin

How did this happen? For the first 100 years the United States covered its expenses by imposing taxes on certain goods manufactured here and on products brought in from other countries. Then our country changed to a mainly rural and agricultural society to a mainly industrial society. As a result, the government’s need for income increased The 16 th amendment, adopted in 1913, Congress passed tax laws. We now have taxes on income as well as on sales and property.

United States Individual Income Tax The Individual income tax is imposed on an individual’s earnings from wages and salary.

Characteristics of Income Tax System Ability to pay- the federal income tax rules are designed to match one’s ability to pay. The more money one makes the higher share of taxes one pays. Voluntary compliance- The IRS trusts that each citizen will file taxes and pay their taxes. However, if an individual fails to do so, they may face a fine or jail time (tax evasion)

Characteristics of Income Tax System Pay as you go – the taxes are taken from you wages. This prevents citizens from owing any money on April 15 th.

Ask Yourself 1.What is an income tax? 2.How long does he average person have to work in a year to earn the amount of money that he or she pays to the government in taxes? 3.What are two characteristics of our income tax system?

Tax Tables Taxable income is the amount of money that you actually make during the year minus certain adjustments, deductions, and exemptions that the government allows. SingleRate $0 – $8,02510% $8,026 - $32,55015% $32,551 - $78,85025% $78,851 - $164,55028% $164,551 - $357,70033% $357, %

Sharpen Your Skills Example 1: Elizabeth’s taxable income for the past year was $2,275. How much tax does Elizabeth, who is single, owe? Solution: $2,275 is listed twice. Go with the second listing.

Tax Rate Schedules Formulas for Tax Rate Schedule X (for single taxpayers): 1. if 2. if 3. if

Example 2 Marilyn’s taxable income is $102,000. How much does Marilyn, who is single, pay in taxes?

Example 3 Finding taxable income. Taxable Income = total income – (deductions and exemptions) Ex. Luis’s monthly income for this year was $675. He had a deduction of $3600 and an exemption of $2300. He has one withholding allowance, and he is single. 1. What was Luis’s total income for the year? 2. What was his taxable income? 3. How much income tax does he owe? 4. How much was withheld from his paychecks? 5. Does he have a refund? If so, how much is it?