Chapter 6: Paying Taxes. “Only two things in life are certain: death and taxes.”. Tax – money collected by a government from its citizens for the purpose of operating the government. Sales tax – pay when you make a store purchase (state or city tax, not federal)
Tax – money collected by a government from its citizens for the purpose of operating the government.
1040 or 1040EZ tax
form (see txbk pg178)
Scenario: According to your W-2 statement, your wages were $11,357 for the previous year. The amount deducted from your earnings for federal income tax was $1,248. In addition to your wages you earned $488 interest from your savings account. You are filling as a single person and you are claimed as a dependent on your parent's tax form.
Classwork: Fill out the 1040EZ tax form to see if owe money or get a tax refund.
1. What are the important facts needed for filling out the tax form?
2. What does it mean to be claimed as a dependent?
3. What is the difference between adjusted gross income and gross taxable income?
Heading: Ch 6 test prep pg 191 #1-13