Taxes Guided Notes: What are Taxes: A tax is:.,, and taxes account for more than 35% of the average families expenses. For many workers, are their single annual expense, even more than, shelter, transportation,, medical care, or. The person works about out of every on the job to pay for the government. Each year employed persons work from just to pay,, and taxes. Deductions: The amount that is from your paycheck for federal and state income taxes depends on two things:.. What do Taxes Pay For: Taxes pay for,,,,,,, on, and law enforcement. What would happen if we didn t have these services?
Five Types of Taxes: Personal Income Tax:. Social Security Tax: Also on personal income used to pay social security programs administered by federal government. Property Tax: Tax on the value of your and a person owns. It may include,,,, home furnishings, and expensive jewelry. Property taxes are assessed by city, county, and/or state government. Sales Tax:. Excise Tax: Tax placed on certain products or, such as, cigarettes, liquor, and. When to File Taxes: You need to file taxes if your gross income is equal to or exceeds. Different Types of Income: Gross Income: An individual s, before for taxes or.
Sources of gross income include salary, wages, tips, capital gains, dividends, interest, rents, pensions, and alimony. Net Income: Net income is, allowances, and deductions. An individual s is used to determine how much income tax is owed. W-4: Employee s Withholding Allowance Certificate An employee completes an IRS form, to indicate his tax situation to the employer the correct amount of tax to from an employee s paycheck based on the employee s marital status, number of exemptions and dependents and other factors. You can claim an for yourself unless someone else can claim you as a. The total number of tells your employer how much tax to take from your paycheck. The the number the amount the more taxes the employer will take. W-2: The form reports an employee s and the amount of taxes from his or her paychecks. You will receive your W-2 by January 31 st, you will receive them from every employer you worked for the previous year. This form is what you use to complete your taxes by. This statement shows how much money you, how much was and sent to the respective government agencies in your behalf. Tax Forms:
Social Security and Medicare: is intended to provide you with subsistence level of income in retirement to provide for basic necessities such as food, shelter, and clothing. It is not intended to be your sole source of. If you were born before you are eligible to collect full social security benefits at age 65. If you were born in or after you have to wait until the age 67 to claim your benefits. In addition to paying for retirement your social security taxes are also provide for for you, insurance for you financial dependents, and, the health insurance program for retirees. The amount of social security benefits that you receive in retirement depends on your average during your working years. A about social security is that what you put in, you will eventually receive back. Is this true? This is the core of most retired person s. Two parts to Medicare: Part A: pays for costs of a hospital stay Part B: is optional insurance plan to pay doctors bills. Participants pay a monthly premium which is automatically deducted from their monthly social security checks.
Methods for Paying Employees: Paycheck: Understanding Your Paycheck: Direct Deposit: Taxes: Progressive Taxes: Regressive Taxes: Form I-9: What is an I-9 form? Reading a Paycheck Stub: Personal Information: Pay Period: Gross Pay:
Net Pay: Deductions: Federal Withholding Tax: State Withholding Tax: FICA: Social Security: Medicare: Retirement Plan: Year-to-Date: