Post on 28-Jun-2018
transcript
Directions: Answer all questions completely.
1. What form is sent to you and the IRS describing your income? . _________________________________________________
2. When do you file your income taxes?
_________________________________________________
April
15th
3. How much federal income tax was withheld? ________________________________________
4. How much state income tax was withheld? __________________________________________
5. How much social security was withheld? ___________________________________________
0 (none)
withheld
He owns his home and has a mortgage. They Rent.
6. Who has the highest Net Pay for the year? ________________________________________________
7. Who has the most federal income tax withheld? ___________________________________________
8. What are the differences between Paul's life and John's life? _______________________________
____________________________________________________________________________________
9. What conclusions can be drawn based on the difference in the amount of taxes each man pays? . ____________________________________________________________________________________
_____________________________________________________________________________________
To get Net Pay for year, multiply take-home by two, then by twelve.
Gross Gross
Net Net
John's: Paul's:
Also the name of the person you picked.
subtract
10. Pick John or Paul and then write the total Deductions that you checked in the above chart.
Name: _______________ Total Deductions: _________________
11. Using the information from question 1 and the previous page, calculate his annual yearly income:
_______________________ Subtract _________________________ = _______________________
Yearly Salary - Total Deductions = Yearly Taxable Income 12. Using the Federal tax bracket chart above determine how much tax to pay. _______% = $________ (Remember to take the percentage & turn it into a decimal & then multiply it by the salary) Total
13. What is the total value of Tax Credits that you checked from the above chart? __________________
14. What is his total tax responsibility?
___________________________Subtract ____________________________ = ______________________
(Question 12’s total) Total Taxes - (Question 13’s total) Tax Credits = Tax Responsibility
$ 23
$ 96
$ 84
$124
Deductions
Tax Credits
Federal Tax Bracket
Directions: First using John or Paul from the previous page, "understanding pay stubs", Check all
the Deductions and Tax Credits that apply to them. Then complete the following questions below.
Net