1.8 File Your Taxes
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Last updated 10 months ago
52 questions
Note from the author:
OBJECTIVES & STANDARDS
Math Objectives
- Calculate percentages
Common Core Math Standards
- Link to all CCSS Math
- CCSS.PRACTICE.MP6
- CCSS.HSN.Q.A.3
Personal Finance Objectives
- Differentiate between earned and unearned income
- Explain what W-2 and 1099s are used for and how they are different from each other
- Explain the difference between a tax credit and a tax deduction
- Calculate taxes using US federal tax brackets, deductions, and credits
National Standards for Personal Financial Education
Earning Income
- 6a: Calculate the amount of taxes a person is likely to pay when given information or data about the person’s sources of income and amount of spending
- 7c: Differentiate between gross, net, and taxable income
- 8a: Explain the difference between earned and unearned income
- 9b: Explain the difference between a tax credit and a tax deduction
DISTRIBUTION & PLANNING
Distribute to students
- Student Activity Packet
OBJECTIVES & STANDARDS
Math Objectives
- Calculate percentages
Common Core Math Standards
- Link to all CCSS Math
- CCSS.PRACTICE.MP6
- CCSS.HSN.Q.A.3
Personal Finance Objectives
- Differentiate between earned and unearned income
- Explain what W-2 and 1099s are used for and how they are different from each other
- Explain the difference between a tax credit and a tax deduction
- Calculate taxes using US federal tax brackets, deductions, and credits
National Standards for Personal Financial Education
Earning Income
- 6a: Calculate the amount of taxes a person is likely to pay when given information or data about the person’s sources of income and amount of spending
- 7c: Differentiate between gross, net, and taxable income
- 8a: Explain the difference between earned and unearned income
- 9b: Explain the difference between a tax credit and a tax deduction
DISTRIBUTION & PLANNING
Distribute to students
- Student Activity Packet
Intro
QUESTION OF THE DAY: How many math errors did taxpayers make on tax returns last year?
Write your answer to the question of the day below. Then, compare your answer to the answer on the second slide. Finally, follow your teacher’s directions on how to answer the follow-up questions below.
1
How many math errors did taxpayers make on tax returns last year?
How many math errors did taxpayers make on tax returns last year?
1
Does it surprise you that taxpayers make so many errors on their tax returns?
Does it surprise you that taxpayers make so many errors on their tax returns?
1
What strategies can you use to avoid making mistakes on your own tax return?
What strategies can you use to avoid making mistakes on your own tax return?
Learn It
REFERENCE: Do I need to file a return? *Printed out for you*
Before you start filling out tax forms, you should first ask yourself: Do I need to file a tax return? Read the two reference documents linked above about types of income and when you need to file a return, and use them to answer the questions.
1
Selena has earned income of $11,000. Does she need to file a tax return? Why or why not?
Selena has earned income of $11,000. Does she need to file a tax return? Why or why not?
1
Andrew did not work last year but won a cash prize at a carnival of $2,500. Does he need to file a tax return? Why or why not?
Andrew did not work last year but won a cash prize at a carnival of $2,500. Does he need to file a tax return? Why or why not?
EDPUZZLE: What's a W-2 Form?
When it’s time to file your tax return, you will likely receive a W-2 form. Watch this video to learn more about the W-2. Then, answer the questions either in EdPuzzle or below.
1
All of the following people should receive W-2 Forms EXCEPT…- Edgar, who works 10 hours/week cleaning pools for $15/hour at WeCleanPools
- Melinda who works 40 hours/week at a local ice cream shop in the summer
- Marcus, who is on salary as a sales representative at a shoe store, working full-time
- Serena, who is a freelance wedding photographer
All of the following people should receive W-2 Forms EXCEPT…
- Edgar, who works 10 hours/week cleaning pools for $15/hour at WeCleanPools
- Melinda who works 40 hours/week at a local ice cream shop in the summer
- Marcus, who is on salary as a sales representative at a shoe store, working full-time
- Serena, who is a freelance wedding photographer
1
In which box on your W-2 can you find your... A) Wages and Income B) Taxes Withheld?- A) Wages and income = BOX 1; B) Taxes withheld = Not provided on W-2 Form
- A) Wages and income = BOX 1; B) Taxes withheld = BOX 2
- A) Wages and income = BOX 2; B) Taxes withheld = BOX 1
- A) Wages and income = BOX 2; B) Taxes withheld = BOX 3
In which box on your W-2 can you find your... A) Wages and Income B) Taxes Withheld?
- A) Wages and income = BOX 1; B) Taxes withheld = Not provided on W-2 Form
- A) Wages and income = BOX 1; B) Taxes withheld = BOX 2
- A) Wages and income = BOX 2; B) Taxes withheld = BOX 1
- A) Wages and income = BOX 2; B) Taxes withheld = BOX 3
1
When should you receive your W-2 form from your employer?- Attached to every paystub
- By January 1st
- By January 31st
- By April 15th
When should you receive your W-2 form from your employer?
- Attached to every paystub
- By January 1st
- By January 31st
- By April 15th
VIDEO: 10 Things You Should Know About 1099s
If you aren’t employed by a company but do work for them as an independent contractor, you might be issued a 1099 statement. Watch the video and use it to answer the questions.
1
What is the minimum total pay for independent contractors before you receive a 1099 form?
What is the minimum total pay for independent contractors before you receive a 1099 form?
1
1099 forms are issued to independent contractors paid by a business but they also can be issued for other purposes. State two other situations that might cause you to receive a 1099.
1099 forms are issued to independent contractors paid by a business but they also can be issued for other purposes. State two other situations that might cause you to receive a 1099.
MATH CONNECTION - Calculating your Federal Taxes
ACTIVITY: CALCULATE: Your Federal Taxes
Follow your teacher’s instructions to complete the Calculate: Your Federal Taxes activity.
*This is printed out for you to follow along as we fill out the blanks on your NOTES 1.8 Page.
1
_______ Gross Income
1
_______ Total Deductions (Hint: Standard 2024 deduction)
1
_______ Taxable Income
1
_______ 10% Bracket
1
_______ 12% Bracket
1
_______ 27% Bracket
1
_______ Total Taxes Owed
1
_______ Total Eligible Credits
1
_______ Taxes Owed After Credits
1
_______ Taxes Withheld
2
_______ Refund/Owes
_______ Amount
1
_______ Marginal Tax Rate
1
_______ Effective Tax Rate
1
_______ Gross Income
1
_______ Total Deductions
1
_______ Taxable Income
1
_______ 10% Bracket
1
_______ 12% Bracket
1
_______22% bracket
1
_______ Total Taxes Owed
1
_______ Total Eligable Credits
1
_______ Taxes Owed After Credits
1
_______ Federal Taxes Withheld
2
_______ Refund/Owes
_______ Amount
1
_______ Marginal Tax Rate
1
_______ Effective Tax Rate
1
_______ Gross Income
1
_______ Total Deductions
1
_______ Taxable Income
1
_______ 10% Bracket
1
_______ 12% Bracket
1
_______22% bracket
1
_______ Total Taxes Owed
1
_______ Total Eligable Credits
1
_______ Taxes Owed After Credits
1
_______ Federal Taxes Withheld
2
_______ Refund/Owes
_______ Amount
1
_______ Marginal Tax Rate
1
_______ Effective Tax Rate
Exit Ticket
1
A W-2 is…- Issued by an employer at the end of the year to detail how much the employee paid and how much taxes were withheld
- Issued by a business to an independent contractor to detail how much money was paid for contracted work
- Issued by financial institutions to detail how much interest was accrued during the tax year
- Issued by an college or university to detail how much tuition was paid during the tax year
A W-2 is…
- Issued by an employer at the end of the year to detail how much the employee paid and how much taxes were withheld
- Issued by a business to an independent contractor to detail how much money was paid for contracted work
- Issued by financial institutions to detail how much interest was accrued during the tax year
- Issued by an college or university to detail how much tuition was paid during the tax year
1
How is earned income different from unearned income?- Earned income is taxed at the federal level while unearned income is taxed only at the state and local level
- Earned income is subject to taxation, while unearned income is not subject to any taxes
- Earned income includes both federal income tax and payroll taxes while unearned income does not include payroll taxes
- Earned income and unearned income have no differences for tax purposes
How is earned income different from unearned income?
- Earned income is taxed at the federal level while unearned income is taxed only at the state and local level
- Earned income is subject to taxation, while unearned income is not subject to any taxes
- Earned income includes both federal income tax and payroll taxes while unearned income does not include payroll taxes
- Earned income and unearned income have no differences for tax purposes
1
1099s are used…- To report income like contract work, interest, dividends, and unemployment benefits
- Only for reporting the work of independent contractors
- To report money deducted for voluntary contributions like retirement and health insurance premiums
- To figure out how much an employer should deduct in taxes from your paycheck
1099s are used…
- To report income like contract work, interest, dividends, and unemployment benefits
- Only for reporting the work of independent contractors
- To report money deducted for voluntary contributions like retirement and health insurance premiums
- To figure out how much an employer should deduct in taxes from your paycheck
The End!! Vocabulary & Unit Test Tomorrow!!