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