1. 7.1A Tax Tables, Worksheets, and Schedules

2. Vocabulary 1. Property Tax- based on the VALUE of the property you own
2. SALES Tax- based on the value of items you purchase
3. Income taxes- based on the amount of taxable income you EARN
4. Taxable income-earnings that are TAXABLE

3. VOCABULARY CONTINUED 5. Tax- the amount you pay to the GOVERNMENT
6. Internal Revenue Service (IRS)- Government agency that collects FEDERAL tax
7. Single- UNMARRIED taxpayers
8. Married Filing Jointly- married people who fill out one tax return TOGETHER

4. VOCABULARY CONTINUED
9. Qualifying Widow(er)- widow(er) who meets the qualifications outlined by the IRS. 10. Married Filing SEPARATELY- married people who file two separate returns 11. Head of Household- a special filing status for certain UNMARRIED taxpayers who support people in addition to supporting themselves.

5. EXAMPLE 1
Ron is single. He is using an IRS tax form and calculates that his taxable income is $51,482. The instructions tell him to use the tax table to determine his taxes. How much does Ron owe in taxes?

6. EXAMPLE 2
Maria and Don are married taxpayers filing a joint return. Their combined taxable income is $153,900. The IRS offers a tax schedule so that taxpayers can calculate their tax. Use the tax schedule below for married taxpayers filing jointly to calculate Maria and Don’s tax.

7. EXAMPLE 3
Using the same table above, what taxable income would yield a tax of exactly $8,962.50?

8. EXAMPLE 4
The IRS includes the tax schedule for information purposes only. For taxable incomes over $100,000, taxpayers must use the tax worksheet. Here is a portion of the worksheet for married taxpayers filing jointly. Calculate Maria and Don’s tax using this worksheet.

9. Example 5
Deanna and John have a taxable income of $118,675. Use the Married Filling Jointly worksheet to determine the amounts for columns (a) and (c). What is their calculated tax?