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Name 10 things yourName 10 things yourtaxes pay fortaxes pay for

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The federal government of the United States imposes aThe federal government of the United States imposes aprogressive tax on the taxable income of individuals,progressive tax on the taxable income of individuals,corporations, trusts, and estates,corporations, trusts, and estates,

Some state and municipal governments also imposeSome state and municipal governments also imposeincome taxes.income taxes.The first Federal income tax was imposed during theThe first Federal income tax was imposed during theCivil WarCivil War

under Article I, section 8, clause 1 of the U.S. Constitutionunder Article I, section 8, clause 1 of the U.S. ConstitutionIn theIn the 1890s1890sSixteenth AmendmentSixteenth Amendment was ratified inwas ratified in 19131913..

http://en.wikipedia.org/wiki/1890shttp://en.wikipedia.org/wiki/1890shttp://en.wikipedia.org/wiki/Sixteenth_Amendment_to_the_United_States_Constitutionhttp://en.wikipedia.org/wiki/Sixteenth_Amendment_to_the_United_States_Constitutionhttp://en.wikipedia.org/wiki/1913http://en.wikipedia.org/wiki/1913http://en.wikipedia.org/wiki/1913http://en.wikipedia.org/wiki/Sixteenth_Amendment_to_the_United_States_Constitutionhttp://en.wikipedia.org/wiki/1890s

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MedicareMedicare is the name given to a health insuranceis the name given to a health insuranceprogram administered by the United Statesprogram administered by the United Statesgovernment, covering people who are either agegovernment, covering people who are either age

65 and over, or who meet other special criteria.65 and over, or who meet other special criteria. 1.45% withheld from the worker and a matching1.45% withheld from the worker and a matching

1.45% paid by the employer1.45% paid by the employer In the case of self-employed individuals, the tax isIn the case of self-employed individuals, the tax is

2.9% of net earnings from self-employment2.9% of net earnings from self-employment

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TheThe Internal Revenue ServiceInternal Revenue Service ((IRSIRS) is the) is theUnited States federal government agency thatUnited States federal government agency thatcollects taxes and enforces the internal revenuecollects taxes and enforces the internal revenue

lawslaws In 1862, during the Civil War, President LincolnIn 1862, during the Civil War, President Lincoln

and Congress created the office of Commissionerand Congress created the office of Commissionerof Internal Revenue and enacted an income tax toof Internal Revenue and enacted an income tax to

pay war expenses . The position of Commissionerpay war expenses . The position of Commissionerexists today as the head of the Internal Revenueexists today as the head of the Internal RevenueServiceService

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Some of your wages are exempt from taxationSome of your wages are exempt from taxation Tax exemptionsTax exemptions

Allowances for dependantsAllowances for dependants

DeductionsDeductions Standard or itemizedStandard or itemized

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Has anyone has ever seen a W-2?Has anyone has ever seen a W-2?

When do we receive a W-2 form?When do we receive a W-2 form? after the year ends, usually in Januaryafter the year ends, usually in January

What is the purpose of the W-2 form?What is the purpose of the W-2 form? it tells the employee how much money was earned,it tells the employee how much money was earned,

and how much money was withheld for taxes.and how much money was withheld for taxes.

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Box 1- Wages, tips, othercompensation: This is theamount that will be entered onthe wages line of your taxreturn.

Box 2 - Federal income taxwithheld by your employer.Box 3 = Social security taxwithheldBox 6 - Medicate tax withheld.Box 17 - State income tax.Other information on the W-2:Box 8 - Allocated tips.

Box 10 - Dependent carebenefits. Total dependent carebenefits that were paid to youby your employer or incurredon your behalf.

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Complete the following :Complete the following : Earning Statement (answer questions)Earning Statement (answer questions)

W-4 (complete the form)W-4 (complete the form)

W-2 (answer questions)W-2 (answer questions)

1040EZ (complete the form)1040EZ (complete the form)