Presentation on theme: " 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."— Presentation transcript:
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 fire protection, public schools, road maintenance, parks, libraries, military, Medicare and Medicaid, etc.
Sales Tax – tax on products you purchase. Excise Tax – may be charged on such items as automobiles, gasoline, air travel Property Tax: tax on value of land and buildings (home). This is a major source of income to your local government. As the value of the property increases, so does the tax.
Gift tax – applies to money or property valued at more than $11,000 given by one person to another. (amount subject to change by federal government at any time).
Taxes on wages, salaries, and self- employed earnings. It is the main source of income for the federal government. Wages – money received from hourly work. Salary – money received for weekly or monthly work, regardless of the number of hours worked.
Estate tax – federal tax collected on the value of a persons property at the time of their death. Inheritance tax- this is a tax charged to heirs of a will and must be paid before the heirs can collect the inheritance.
Unearned income is taxable and must be included on your taxes as income. The tax rates for unearned income may be lower than income tax rates on earned income. (ex. Dividend payments may be subject to a 15% tax while earned income tax may be at a much higher rate)
Every year millions of taxpayers in the U.S. prepare and file their tax return with the Internal Revenue Service (IRS). The form may be a 1040 or 1040EZ. The1040EZ is the simplest tax form to complete. You are required to file an income tax return by April 15 th of each year (unless the 15 th falls on a Saturday or Sunday, in which case you would be required to file on the following Monday. Financial penalties for late filing may be incurred, even if you are just one day late. Your employer is required by law to send you a W-2 form, or the Wage and Tax Statement. This must be sent to you by January 31 st of each year.