1. Principles of Business, Marketing and Finance Income Tax Return 1 Copyright © Texas Education Agency, 2012. All rights reserved.

2. “Copyright and Terms of Service Copyright © Texas Education Agency. The materials found on this website are copyrighted © and trademarked ™ as the property of the Texas Education Agency and may not be reproduced without the express written permission of the Texas Education Agency, except under the following conditions: 1)Texas public school districts, charter schools, and Education Service Centers may reproduce and use copies of the Materials and Related Materials for the districts’ and schools’ educational use without obtaining permission from the Texas Education Agency; 2) Residents of the state of Texas may reproduce and use copies of the Materials and Related Materials for individual personal use only without obtaining written permission of the Texas Education Agency; 3) Any portion reproduced must be reproduced in its entirety and remain unedited, unaltered and unchanged in any way; 4) No monetary charge can be made for the reproduced materials or any document containing them; however, a reasonable charge to cover only the cost of reproduction and distribution may be charged. Private entities or persons located in Texas that are not Texas public school districts or Texas charter schools or any entity, whether public or private, educational or non-educational, located outside the state of Texas MUST obtain written approval from the Texas Education Agency and will be required to enter into a license agreement that may involve the payment of a licensing fee or a royalty fee. Call TEA Copyrights with any questions you have.

3. Discovery Determine the gross income for an individual working 40 hours per week at minimum wage. Will the individual receive a check from the company they are working for in that amount? How do taxes affect the individual’s income? 3 Copyright © Texas Education Agency, 2012. All rights reserved.

4. Need to Know Terms Filing Status Exemption Gross Income Adjusted Gross Income Itemized Deductions Standard Deduction Taxable Income Tax Credit 4 Copyright © Texas Education Agency, 2012. All rights reserved.

5. Introduction–Purpose of the Lesson SWBAT (students will be able to) Identify tax forms Complete individual tax return Determine exemptions and deductions on a tax return 5 Copyright © Texas Education Agency, 2012. All rights reserved.

6. Guided Practice Go to the website: http://jafinancepark.ja.org/PublicUser/JumpPa ge http://jafinancepark.ja.org/PublicUser/JumpPa ge Complete the log-in process by filling in your information Follow the steps to set up a simulation Practice making financial decisions and filing taxes. 6 Copyright © Texas Education Agency, 2012. All rights reserved.

7. Independent Practice Fill in your personal information on the Form 1040 EZ. Use the financial information located on the provided W-2 to complete the required areas on the form. Calculate the tax return based on the formulas provided throughout the 1040 EZ. Double check all calculations and information to ensure accuracy for the IRS. Turn in completed Form 1040 EZ and completed W- 2 with your information added. 7 Copyright © Texas Education Agency, 2012. All rights reserved.

8. Summary Why is it important to complete the Form W-4 correctly upon starting a new job? Who do you send an individual tax return to? What is the last date you can file an individual tax return without penalty? When should employers provide the W-2 to employees? What are some examples of exemptions you may have on a tax return? 8 Copyright © Texas Education Agency, 2012. All rights reserved.