History
Where did they find the earliest evidence of taxes?
Ancient Egypt.
What do taxes help pay for in society?
Public services
What tax do we pay when buying things at a store?
Sales Tax.
What are the 3 Standard Deductions main columns?
Single, Married / Filing Jointly, Head of Household
What are the 3 main tax systems?
Progressive, Regressive, and Proportional
What did Pharaohs take as payment when taxing people?
Grain and Livestock.
What happens when the government spends more money than it collects?
It borrows money to cover the deficit.
What tax do we pay when we earn money from working?
Income Tax.
What is the Standard Deduction for Married/Filing Jointly?
$31,500
What is the standard deduction for single in 2016
6,300
How much money was lost during the Boston Tea Party?
1.7 million dollars.
What are three examples of a public service funded by taxes?
Financial Aid, Public Education, Public Transportation, Emergency Services, Health Care
What does Payroll tax consist of?
Social Security and Medicare.
What are 3 things that qualify you as Head of Household?
Having dependents
Paying more than 50% of the expenses
being unmarried or considered unmarried for a year.
Difference between Tax Evasion and Tax Avoidance
Tax Evasion: Failure to pay legally due taxes
Tax Avoidance: Legal means of decreasing your tax bill.
How many chests full of tea were dumped into the Boston Harbor?
342 Chests.
What is one consequence if governments did not collect enough taxes?
Public services and programs could lose funding or shut down.
What is Social Security and Medicare for?
Social Security helps with Retirement while Medicare pays for health care services for people who are elderly or have certain disabilities.
State and Local Tax
What is the exact tax percentage you pay the Government when you pay $20,267 in taxes based on your $144,250 taxable income from $130,000 Gross pay?
TTD/TI = Effective tax rate
14.04% or 14.05%
Why did the colonists protest against the British? (What was the Act called with year)
The British Parliament’s Tea Act of 1773
Personal income taxes are based on individual earnings, while payroll taxes specifically fund programs like Social Security and Medicare.
What example was given for "Capital Gains Tax"?
Stocks, Car, and Property. (Buy and Sell for more than it's worth)
What are the three main deductions that can help lower your taxable income?
Charitable Giving, Mortgage interest, and Medical Expense
Can you list the four tax forms discussed in class and explain what they are?
I-9 = Leagal to work in US
1099 = Nonemployee Compensation (Independent Contractors)- Freelance, Consultants
1040, W-2, W-4