Taxes

FINE PRINT: Pay Stub - NGPF

• Explore a Pay Stub in detail

• Answer questions using the sample Pay Stub- 2 Parts and 11 Questions

End

Filing Tax Returns

The Tax System

LEQ 2: When filing my personal taxes, what forms do I need to complete and how do I obtain them?

• W2 - Example
• Printed 1040ez
• Printed PA-40
• Printed YATB-TO-32

• Complex- Businesses and Individuals
• Your Federal Income Tax Receipt- https://www.nationalpriorities.org/interactive-data/taxday/
• IRS- collect income taxes and enforce tax laws
• The Power to Tax- Congress
• Paying Your Fair Share- Income Tax System is Graduated- 6 brackets- 10%-35%

Voluntary Compliance; Tax Evasion (Serious crime)

• IRS Audit- examination of tax returns

Completing the 1040- NGPF

• FAST FACTS:
• 60% of tax payers got professional help in 2017 (Wallethub, 2018)
• In 2017, the federal government collected over $3.3 trillion in taxes (Justfacts, 2017)
• 90% of the returns in 2018 are expected to be filed electronically (Wallethub, 2018)
• When completing a 1040, you need...
• Your W4 Form
• The 1040 you used in the previous tax filing year
• A W2 Form for every job you held in the past year
• To complete, use the 1040 and W2
• 5 Different scenarios- pretend current year and the person held only 1 job the previous year
• Follow the directions on every line of the 1040
• For certain lines, additional information given in the table

If Paychecks Could Talk- 4:04 min

https://edpuzzle.com/media/5c00711bd7e11a40dacc0867

Question of the Day

Taxes

EQ: Why do we have to pay taxes and how do we do so?

LEQ 1: Why do we have taxes?

LEQ 2: When filing my personal taxes, what forms do I need to complete and how do I obtain them?

Income Tax Return Trend

• steady increase in the number of tax returns that are efiled each year

• United States taxpayers who self prepare their own tax returns has continued to grow

Taxes

Who Pays and Why?

• Your Federal Income Tax Receipt- Schoology link

Where did the federal government spend all the money you paid in income taxes for the tax year?- NGPG

• U.S. Debt Clock- Schoology link

• 45% of Americans Pay No Federal Income Tax - Article

• Day 1 Income Tax Returns- Worksheet (Pages 136-156)

Our Tax System - Chapter 7.1

• Types of taxes you and your family pay?- Read page 136-137
• Revenue
• Progressive- Federal income tax (low- 15%; high- 28%)
• Regressive (lower income people pay a greater percentage of their income in sales taxes- price of the product is the same)
• Proportional (flat taxes)- Eg.?
• Direct (income, property, and sales taxes)
• Indirect (form of higher prices- gasoline, utilities, alcoholic beverages, and cigarettes)
• Why do we have to pay taxes?
• Local level- education, parks, roads, police, fire, & health
• National level- national defense, highways, wildfire refuges, welfare, & foreign aid)

Mrs. Bajaj and Mrs. Tomecek