TAXATION. Lesson Activities. Awesome.

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Anissa Hunter
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1 TAXATION Lesson Activities Awesome.

2 REALITY (PAY)CHECK Interpreting Your Pay Stub

3 Your paycheck comes with a pay stub. The pay stub gives details about how much you earn and the taxes you pay. Check out the parts of Wanda Worker s pay stub. REALITY (PAY)CHECK

4 REALITY (PAY)CHECK How much does Wanda earn per hour? $12.75

5 REALITY (PAY)CHECK What are Wanda s total earnings for the current pay period? $1,020.00

6 REALITY (PAY)CHECK Which tax had the least taken out? The most? Least: Medicare tax Most: Federal income tax

7 REALITY (PAY)CHECK How much did Wanda pay in taxes this pay period? $188.64

8 REALITY (PAY)CHECK How much has Wanda paid in total taxes this year? $2,263.68

9 REALITY (PAY)CHECK How much federal tax has Wanda paid so far this year? $1,112.40

10 REALITY (PAY)CHECK What was Wanda s gross pay during the current pay period? $1,020.00

11 REALITY (PAY)CHECK Was Wanda s entire gross pay taxable? Yes No

12 REALITY (PAY)CHECK Wanda receives a check for which amount? Gross pay Net pay Taxable amount

13 REALITY (PAY)CHECK What are the two pre-tax deductions that are taken out of Wanda s check? Health insurance 401k Retirement

14 REALITY (PAY)CHECK Wanda paid $93 toward health insurance and retirement. Did she pay taxes on that $93? Yes No

15 REALITY (PAY)CHECK If Wanda s state did not have an income tax, how much extra money would she have kept so far this year? $300.36

16 HOW MUCH WILL IT COST? A Look at Sales Tax

17 HOW MUCH WILL IT COST? If To people City County find State sales the in sales this total tax county only tax sales Here If There you Now is are an are find imaginary 2 B-Town, the cities 3 want applies What tax Let s 5% rate to is + learn buy inside 2% A-Town s you everywhere a + how will car, 3% a city s pay, to they = tax what biggest in county will this stores be county. in the an in total the boundaries. add in calculate have the the state. county. rate? 210% tax choices. sales rates What tax. of is imaginary sales Name county. tax them. rate? state. everywhere B-Town s the is What the state county are tax you they? rate? tax are. rate?

18 HOW MUCH WILL IT COST? Example: How much will you pay for a $50 shirt at Bigmart in A-Town? 1) ADD to find the tax rate: State tax 5 % County tax 2 % City tax + 2 % Total Tax 9 %

19 HOW MUCH WILL IT COST? Example: How much will you pay for a $50 shirt at Bigmart in A-Town? 2) MULTIPLY the tax by the price: $ 50 x price tax rate

20 HOW MUCH WILL IT COST? Example: How much will you pay for a $50 shirt at Bigmart in A-Town? 3) MOVE the decimal point 2 places to the left. This is the amount of tax you will pay: $ 50 x The tax on this shirt will be $4.50.

21 HOW MUCH WILL IT COST? Example: How much will you pay for a $50 shirt at Bigmart in A-Town? 4) ADD the tax and the price to see the final cost: $ The shirt will cost $54.50 at Bigmart in A-Town.

22 HOW MUCH WILL IT COST? You try it: 1) A pair of headphones costs $10 at both Bigmart in A-Town and Hugemart in B-Town. What would you actually pay for the headphones at each store? In A-Town: Tax rate = 9% $10 x 9 = 90 Tax = $0.90 In B-Town: Tax rate = 10% $10 x 10 = 100 Tax = $1.00 The headphones will cost $10.90 in A-Town and $11.00 in B-Town.

23 HOW MUCH WILL IT COST? You try it: 2) Lisa is going to buy a new car! It costs $15,000 at both A-Town Dealership and at Bob s County Dealership. What would she actually pay for the car at each place? In A-Town: Tax rate = 9% $15,000 x 9 = Tax = $1, At Bob s: Tax rate = 7% $15,000 x 7 = Tax = $1, The new car will cost $16,350 in A-Town and $16,050 at Bob s.

00 250 + 25 = 275 At the County Store: Tax rate = 7% $257 x 7 = 1799 Tax = $17.99 257 + 17.99 = 274.

24 HOW MUCH WILL IT COST? You try it: 3) A stereo costs $257 at the County Store and $250 at Hugemart in B- Town. With taxes, what would you actually pay at each store? In B-Town: Tax rate = 10% $250 x 10 = 2500 Tax = $ = 275 At the County Store: Tax rate = 7% $257 x 7 = 1799 Tax = $ = The stereo will cost $275 in B-Town The County and $ Store. at the County Store. If it costs you $10 in gas to drive to Hugemart, at which store will the stereo end up costing you the least?

chairs. It just put a $1 excise tax on each pack of gum! Gum used to cost $0.

25 HOW MUCH WILL IT COST? You try it: 4) The state is tired of people putting gum under tables and chairs. It just put a $1 excise tax on each pack of gum! Gum used to cost $0.75 at both Bigmart and Hugemart. What will the new price tags say? The price goes up $1 per pack everywhere, so the new price will be $1.75.

26 TAXATION Lesson Activities The End.

Taxation STEP BY STEP

Taxation STEP BY STEP Teacher s Guide Time Needed: One to two class periods Materials Needed: Student worksheets Projector (optional) Transparencies (3, or project from computer; optional) Copy Instructions: Reading (2 pages;