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

N/A

Make up the

bank numbers.

- Box 12

N/A

Almighty Rimmer Almighty Rimmer New Smyrna Beach High

911

0 0 0 0 0 0

000

Directions: Fill out this 1040EZ tax form using the W2 tax form from page 2.

*Use the Fed Tax

table again.

1015 10th st. – New Smyrna, FL 32168