taxes what you can t avoid n.
Download
Skip this Video
Loading SlideShow in 5 Seconds..
TAXES – What You Can’t Avoid! PowerPoint Presentation
Download Presentation
TAXES – What You Can’t Avoid!

Loading in 2 Seconds...

play fullscreen
1 / 28

TAXES – What You Can’t Avoid! - PowerPoint PPT Presentation


  • 135 Views
  • Uploaded on

TAXES – What You Can’t Avoid!. Instructor Name Class Title. Two Things You Can’t Avoid: Death and Taxes!. Understanding Taxes and Tax Forms. The first form you will work with is Form W-4 Personal Allowance Worksheet

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about 'TAXES – What You Can’t Avoid!' - fia


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
taxes what you can t avoid

TAXES – What You Can’t Avoid!

Instructor Name

Class Title

understanding taxes and tax forms
Understanding Taxesand Tax Forms
  • The first form you will work with is Form W-4Personal Allowance Worksheet
  • It is filled out each time you begin a new job and/or if your family status changes
    • If you marry or have children, you will need to fill out a new W-4
  • This form tells your employer how much money to withhold from your paycheck to pay the government your taxes
  • Withholding Taxes: the tax your employer takes out of your paycheck
form w 4
Form W-4
  • Line A: you are a dependent as long as you are living with someone and they provide most of the money for your care—they claim you as a ‘dependent’
  • Line B:
  • Line C: Enter “0” at all times unless you and your spouse do not earn much combined income or your spouse does not earn anything – this makes that person a dependent
form w 41
Form W-4
  • Line D:Does your salary provide for anyone else living in your household?
  • Line E:See “head of household” conditions
  • Line F:Child care that you are claiming
  • Line G:If you have a low income and have to care for children
  • Line H:Add up your numbers…you want this to be as close to 0 as possible
  • Be sure to completely fill out lower part of the W-4:
    • Print name
    • SS#
    • Full Address
form w 42
Form W-4
  • Single, Married, Married, but withhold at higher Single rate – you are filing single so you will have more tax taken out of your paycheck
  • #5 – total number from above
  • #6 – Additional amount you want withheld – to make sure you pay enough
  • #7 – Exempt– saying you don’t make enough for the government to withhold any money. DO NOT use this unless you are absolutely sure you qualify
form w 43
Form W-4
  • #7 – Exempt – you don’t earn enough income for the government to withhold any money from your paycheck. DO NOT use this unless you are absolutely sure you qualify!
    • You will have to pay a penalty of $500 if you earn more than you thought you would
  • Sign & Date
    • If you forget to sign, your tax filing is not valid!
during the regular year
During the Regular Year
  • You do not need to keep track of your taxes-- that is what your employer does!
  • You may want to double check your pay stub to make sure that your tax deductions are being calculated correctly
form w 2 wage and tax statement
Form W-2 Wage and Tax Statement
  • This is sent to you by your employer – completely filled out!
  • Sent by January 31
  • Make sure everything is correct and then use it to file your tax information for the IRS!
form w 2
Form W-2
  • 2: Federal Income Tax Withheld: How much federal income tax your employer took out of your paychecks
  • 4: Social Security Tax Withheld: how much social security tax your employer took out of your paychecks
  • 6: Medicare Tax Withheld: how much Medicare tax your employer took out of your paychecks
form w 21
Form W-2
  • Lines 15 – 20: information on state tax and local tax deducted from each paycheck
  • You will need a W-2 from each job that you have held this year, even if you don’t work there anymore!
form 1099 int interest income
Form 1099-INT Interest Income
  • This is sent to you by your bank or financial institution.
  • It shows how much money you have made on interest on your investments
  • You must pay taxes on your interest!
form 1099
Form 1099
  • A copy is also sent to the IRS, so they know what the amounts are – you can’t lie!
  • The type of investment you have will determine whether you must pay taxes on the interest or dividends earned
filing your taxes
Filing Your Taxes
  • You must file you taxes by April 15
    • Penalties for filing late!
    • You can file for time extension, if necessary
  • Ways to file:
    • Hire an Accountant:they do all the work and even send in the forms
      • Inquire about fees charged if accountant files
    • Fill out the forms yourself and send in
    • E-File:electronically file your taxes
      • Save money by filing your taxes yourself!
tax terms
Tax Terms
  • Voluntary Compliance: every citizen voluntarily files a tax return by April 15th
  • Tax Evasion: not reporting income or paying your taxes
  • Audit: IRS wants additional data or evidence about your return
    • Correspondence Audit: done by mail
    • Field Audit or Office Audit: meet with IRS agent in person
      • Can give someone else power-of-attorney to take your place
      • Can bring a tax expert for advise and support
federal income tax single taxpayer for 2006 taxes
Federal Income Tax(Single taxpayer for 2006 Taxes)

Annual Earnings Tax + Tax Rate Over

  • $0 – 7,550 $0 tax + 10% over 0
  • $7,550 – 30,650 $755 +15% over $7,550
  • $30,650 – 74,200 $4,220 +25% over 30,650
  • $74,200 – 154,800 $15,107.50 + 28% over 74,200
  • $154,800 – 336,550 $37,650.50 +33% over 154,800
  • $336,550 or more $97,653.00 + 35% over 336,550
  • Source: http://www.smbiz.com/sbrl001.html#pis06
federal income tax
Federal Income Tax
  • How much would you owe in taxes if you earned ? ? ?
    • $10,000 $
    • $80,000 $
    • $150,000 $
10 000
$10,000
  • 10,000 – 7,550 = $2,450.00
  • 2,450 * .15 = $ 367.50
  • 755 + 367.50 = $1,122.50
  • What if the government used a steady rate of 15%?
  • 10,000 * .15 = $1,500
80 000
$80,000
  • 80,000 – 74,200 = $ 5,800.00
  • 5,800 * .28 = $ 1,624.00
  • 15,107.50 + 1,624 = $16,731.50
  • What if the government used a steady rate of 28%?
  • 80,000 * .28 = $22,400
150 000
$150,000
  • 150,000 – 74,200 = $75,800.00
  • 75,800 * .28 = $21,224.00
  • 15,107.5 + 21,224 = $36,331.50
  • What if the government used a steady rate of 28%?
  • 150,000 * .28 = $42,000
basic tax forms
Basic Tax Forms
  • The following are common forms used by citizens to file their Federal taxes:
  • Forms 1040, 1040A, 1040EZ
  • Schedule A,B, or C
  • Download current tax forms @

http://www.unclefed.com/IRS-Forms/2001/HTML/p52710.html

form 1040 u s individual income tax return
Form 1040 U.S. Individual Income Tax Return
  • Use this form if you want to itemize deductions or if you are a business owner
  • Use the Schedules with this document
form 1040a
Form 1040A
  • Use this form if you have children, child care expenses, dependents
form 1040ez
Form 1040EZ
  • This is the easiest form to use!
  • Use the “EZ” if you have limited dependents/exemptions – usually if it is just you or maybe a spouse
tax form schedules
Tax Form Schedules
  • Schedule A:
    • Allows you to show where you spent your money and to get tax breaks on certain expenditures
  • Schedule B:
    • Shows interest and dividends for tax exemptions
  • Schedule C:
    • Used in businesses to show profit or loss
    • If you own a business, you will want to fill one of these out!
other forms
Other Forms
  • There are many other forms that you can use for other exemptions and deductions
  • If you start having to use all of these forms, it is may be time to get some help!
  • Know when it is too much for you to handle