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Key Terms
Section 5.1
Is having more income than necessary withheld from your paychecks a good way to save?
*Payroll Tax*Income Tax*FICA*Withholding*Gross Income*Net Income*Form W-4*IRS*Allowance
Question to think about!
Section 5.1 Gross Pay vs. Net PayKelly found a part-time job after school that pays $7.50 per hour. She wanted to take home at
least $50 per week, so she agreed to work seven hours each Saturday. She expected her first
paycheck to be $52.50. ($7.50 X 7hrs) She was surprised to find it was only $40.39. Why wasn’t
Kelly’s check larger?
*Look at example of paycheck from page 158
Section 5.1
Activity Sample Form W-4 page 159
Section 5.1
Key Terms
Section 5.2
Is the tax system too complicated for most ordinary taxpayers to understand?
*Tax Return*Form W-2*Form 1099-INT*Form 1040EZ*Dependent*Deduction*Social Security Number*Taxable Income
Question to think about!
Form W-2Example on page
164
Section 5.2
Activity & HomeworkComplete a 1040EZ
We will go over how to complete a 1040EZ tax form together.
HomeworkPage 173#3, 4, & 5
Section 5.2
Key Terms
Section 5.3
What is the major source of revenue for the federal government?
*Sales Tax*Property Tax*Excise Tax*Estate Tax*Gift Tax*Business Tax*Tariff
Question to think about!
Section 5.3
Direct Indirect Pay-as-You-Earn
Income and property tax – are
paid directly to the government
Included in the cost of a good or
service.
Federal withholding-as you receive a paycheck, the government takes a cut.
How Taxes Are Collected
Section 5.3
Income Sales Property
State and local income taxes
may be withheld from your pay as
well.
Included in the cost of a good or
service.
Taxes in the value of your
property when you own.
Types of Taxes
Excise Estate & Gift Business/License
State-tobacco, gas, alcoholFederal-oil products,
firearms, air travel
Estate-property that is received after someone
dies.Gift-taxes that
the giver of gifts may pay. Over
$12,000
To operate certain kinds of businesses, you will be taxed on
the license, permit, or stamp
that you must hold.
Homework
HomeworkPage 178
#3 *make sure you explain each one
Key Term
Section 5.4
How does the government spend the money it receives?
*Public Good
Question to think about!
Section 5.4
What State and Local Governments Provide
Roads Police and Fire Services Criminal Justice System Schools – including colleges and universities Medical Facilities Sewage Plants Unemployment Programs
Test Tomorrow Complete Study Guide Sleep and Eat Well Bring a Pencil Think Positive