WARM UP Write these numbers in words 1,000 1,000 100 100 10,000 10,000 1,000,000 1,000,000

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WARM UPWARM UP

Write these numbers in wordsWrite these numbers in words1,0001,00010010010,00010,0001,000,0001,000,000

CONSUMER FINANCECONSUMER FINANCE

Chapter 11: Paying TaxesChapter 11: Paying Taxes

Lesson 1: Large NumbersLesson 1: Large Numbers

DIRECTIONS (Large #s)DIRECTIONS (Large #s)

I DO (BIG #s)I DO (BIG #s)

Write numericallyWrite numerically

NumberNumber

1.1. 1.6 million1.6 million

2.2. 72.5 trillion72.5 trillion

3.3. 416 million416 million

WE DO (BIG #s)WE DO (BIG #s)

Write numericallyWrite numerically

NumberNumber

1.1. 605.6 billion605.6 billion

2.2. 250 thousand250 thousand

3.3. 260.408 billion260.408 billion

I DO (BIG #)I DO (BIG #)

Write the #Write the #NumberNumber

1.1. 200,500,000200,500,000

2.2. 1,000,000,0001,000,000,000

3.3. 65,00065,000

WE DO (BIG #)WE DO (BIG #)

Write the # in wordsWrite the # in wordsNumberNumber

1.1. 350,750,000350,750,000

2.2. 20,50020,500

3.3. 35,500,000,00035,500,000,000

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Today we learned how to write large Today we learned how to write large #s#s

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.35 x 500,000.35 x 500,000 .30 x 250,000.30 x 250,000 .25 x 1,250,000.25 x 1,250,000 .10 x 3,250,000,000.10 x 3,250,000,000

CONSUMER FINANCECONSUMER FINANCE

Chapter 11: Paying TaxesChapter 11: Paying Taxes

Lesson 2: Federal BudgetLesson 2: Federal Budget

VOCABVOCAB

RevenueRevenue is the income, or money, is the income, or money, that federal or state agencies collect that federal or state agencies collect and useand use

ReceiptsReceipts are income are income

DIRECTIONS (Federal DIRECTIONS (Federal Budget)Budget)

Read the Circle graphRead the Circle graph Multiply Multiply

Chart x 3.8 trillionChart x 3.8 trillion The fed budget for 2012 was $3.8 trillionThe fed budget for 2012 was $3.8 trillion

I DO (Federal Budget)I DO (Federal Budget)

Find the amount of Find the amount of

money for Each Sourcemoney for Each Source

SourceSource

1.1. Individual Income TaxesIndividual Income Taxes

2.2. Social Insurance Taxes and Cont.Social Insurance Taxes and Cont.

3.3. Corporate Income TaxesCorporate Income Taxes

4.4. Excise TaxesExcise Taxes

5.5. OtherOther

WE DO (Total Dividends)WE DO (Total Dividends) Find the amount of money for Each Find the amount of money for Each

Source that the federal budget is spent onSource that the federal budget is spent on

SourceSource1.1. HealthHealth

2.2. TreasuryTreasury

3.3. DefenseDefense

4.4. Executive OfficeExecutive Office

5.5. AgricultureAgriculture

6.6. LaborLabor

7.7. TransportationTransportation

8.8. OtherOther

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Today we learned how to calculate Today we learned how to calculate the amount of money for each the amount of money for each section of the federal budgetsection of the federal budget

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IS / OF = % / 100IS / OF = % / 100

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1.1. 3575 – 2503575 – 250

2.2. 450 + 2100 + 365450 + 2100 + 365

3.3. 93000 – 540293000 – 5402

4.4. 3156 + 250 + 21503156 + 250 + 2150

CONSUMER FINANCECONSUMER FINANCE

Chapter 11: Paying TaxesChapter 11: Paying Taxes

Lesson 3: Paying TaxesLesson 3: Paying Taxes

VOCABVOCAB

IncomeIncome is the amount of money you is the amount of money you earnearn

Deductions and ExemptionsDeductions and Exemptions are are money you take away from your incomemoney you take away from your income

DependentDependent is a person who is is a person who is supported financially by another personsupported financially by another person

Taxable IncomeTaxable Income is the total income on is the total income on which taxes are paidwhich taxes are paid

ExamplesExamples

DeductionsDeductions Interest on a mortgage/loanInterest on a mortgage/loan Medical ExpensesMedical Expenses Losses not covered by insuranceLosses not covered by insurance Taxes you paidTaxes you paid Gifts to charitiesGifts to charities

DIRECTIONS (Paying DIRECTIONS (Paying Taxes)Taxes)

AddAdd All numbers in the taxable income = All numbers in the taxable income =

Total Exemptions and DeductionsTotal Exemptions and Deductions SubtractSubtract

Total Income – Total Exemptions and Total Income – Total Exemptions and DeductionsDeductions

I DO (Paying Taxes)I DO (Paying Taxes)

Find the amount of Taxable incomeFind the amount of Taxable income

ItemItem AmountAmount Total Total IncomeIncome

1.1. Medical Medical $4500$4500 $42586$425861.1. DependentsDependents $1600$1600

2.2. DependentsDependents $7500$7500 $79421$794211.1. Interest on LoanInterest on Loan $856$856

2.2. GiftsGifts $939$939

WE DO (Paying Taxes)WE DO (Paying Taxes) Find the amount of Taxable incomeFind the amount of Taxable income

ItemItem AmountAmount Total Total IncomeIncome

1.1. Business LossBusiness Loss $14987$14987$109011$1090111.1. State TaxesState Taxes $1234$1234

2.2. GiftsGifts $658$658

2.2. DependentsDependents $5000$5000 $36941$369411.1. CharityCharity $87$87

2.2. State TaxesState Taxes $358$358

YOU DO (Paying Taxes)YOU DO (Paying Taxes)

Find the amount of Taxable incomeFind the amount of Taxable income

ItemItem AmountAmount Total Total IncomeIncome

1.1. MedicalMedical $23356$23356 $65395$65395 GiftsGifts $2573$2573 TaxesTaxes $1500$1500

2.2. DependentsDependents $3500$3500 $71250$712501.1. CharityCharity $350$350

2.2. Uninsured LossUninsured Loss $2300$2300

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Today we learned how to calculate Today we learned how to calculate the amount of money being the amount of money being deducted from when you file tax deducted from when you file tax returns.returns.

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1.1. Write the number in wordsWrite the number in words1.1. 2,2502,250

2.2. 37,50037,500

3.3. 4,500,0004,500,000

4.4. 3,700,000,0003,700,000,000

CONSUMER FINANCECONSUMER FINANCE

Chapter 11: Paying TaxesChapter 11: Paying Taxes

Lesson 4: Reading a Tax TableLesson 4: Reading a Tax Table

VOCABVOCAB

SingleSingle is a person that is not married is a person that is not married JointlyJointly is when you are doing taxes is when you are doing taxes

togethertogether Head of HouseholdHead of Household is a person who is a person who

isn’t married, paid more than half of isn’t married, paid more than half of the cost to keeping up your house, and the cost to keeping up your house, and other people are living in the houseother people are living in the house

Qualifying Widow(er)Qualifying Widow(er) is a person is a person who has lost their spousewho has lost their spouse

MarylandMaryland

Average salary in 2010 wasAverage salary in 2010 was 52,36052,360

25.17 per hour25.17 per hour BTW…this is before unemployment…BTW…this is before unemployment…

If you add all the people who don’t have If you add all the people who don’t have a job the mean drops to about 27000a job the mean drops to about 27000

DIRECTIONS (Tax DIRECTIONS (Tax Tables)Tables)

Find your status Find your status Find your incomeFind your income

I DO (Tax Tables)I DO (Tax Tables)

Determine the tax dueDetermine the tax due

StatusStatus Taxable IncomeTaxable Income

1.1. SingleSingle $25,250$25,250

2.2. Married JointMarried Joint $26,375$26,375

3.3. Married SeparateMarried Separate $25,450$25,450

4.4. Head of HouseHead of House $26,125$26,125

WE DO (Tax Tables)WE DO (Tax Tables) Determine the tax dueDetermine the tax due

StatusStatus Taxable IncomeTaxable Income

1.1. SingleSingle $25,102$25,102

2.2. Married JointMarried Joint $26,345$26,345

3.3. Married SeparateMarried Separate $25,768$25,768

4.4. Head of HouseHead of House $26,575$26,575

YOU DO (Tax Tables)YOU DO (Tax Tables)

Determine the tax dueDetermine the tax due

StatusStatus Taxable IncomeTaxable Income

1.1. SingleSingle $25,300$25,300

2.2. Married JointMarried Joint $26,350$26,350

3.3. Married SeparateMarried Separate $25,790$25,790

4.4. Head of HouseHead of House $26,800$26,800

REVIEWREVIEW

Today we learned how to determine Today we learned how to determine the tax due depending on your filing the tax due depending on your filing status and income.status and income.

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118,673 – 109,250118,673 – 109,250 Answer x 30.5%Answer x 30.5% Answer + 24,393.75Answer + 24,393.75

Consumer Consumer FinanceFinance

Chapter 11: Paying TaxesChapter 11: Paying Taxes

Lesson 5: Using a Tax ScheduleLesson 5: Using a Tax Schedule

DIRECTIONS (Tax DIRECTIONS (Tax Schedule)Schedule)

Find tax bracketFind tax bracket SubtractSubtract

Income – “amount over line” = Taxable Income – “amount over line” = Taxable IncomeIncome

MultiplyMultiply Taxable Income x PercentTaxable Income x Percent

AddAdd Answer + “amount on the form” = TaxAnswer + “amount on the form” = Tax

I DO (Tax Schedule)I DO (Tax Schedule) Find the tax on each incomeFind the tax on each income

IncomeIncome StatusStatus1.1.$154,00$154,00 JointJoint2.2.$107,123$107,123 SeparateSeparate3.3.$53,200$53,200 JointJoint4.4.$162,000$162,000 SeparateSeparate5.5.

WE DO (Tax Schedule)WE DO (Tax Schedule) Find the tax on each incomeFind the tax on each income

IncomeIncome StatusStatus1.1.$275,150$275,150 JointJoint2.2.$122,462$122,462 SeparateSeparate3.3.$22,350$22,350 JointJoint4.4.$341,200$341,200 SeparateSeparate5.5.

YOU DO (Tax Schedule)YOU DO (Tax Schedule) Find the tax on each incomeFind the tax on each income

IncomeIncome StatusStatus1.1.$319,340$319,340 JointJoint2.2.$175,300$175,300 SeparateSeparate3.3.$123,450$123,450 JointJoint4.4.$225,150$225,150 SeparateSeparate5.5.

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Today we learned how to calculate Today we learned how to calculate the tax on certain incomes.the tax on certain incomes.

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5230 – 36155230 – 3615 3987 – 38763987 – 3876 4567 – 48924567 – 4892 5123 - 54325123 - 5432

CONSUMER FINANCECONSUMER FINANCE

Chapter 11: Paying TaxesChapter 11: Paying Taxes

Lesson 6: Refunds and Balance DueLesson 6: Refunds and Balance Due

VOCABVOCAB

RefundRefund is a payment returned to the is a payment returned to the taxpayertaxpayer

Balance DueBalance Due is a payment owed by is a payment owed by the taxpayerthe taxpayer

DIRECTIONS (Refund or DIRECTIONS (Refund or Balance Due)Balance Due)

SubtractSubtract Amount Withheld – Amount of Tax DueAmount Withheld – Amount of Tax Due

+ is a Refund+ is a Refund - is a balance due- is a balance due

I DO (Refund or Balance I DO (Refund or Balance Due)Due)

Find the amount of money refunded Find the amount of money refunded or owed by the taxpayeror owed by the taxpayerAmount WithheldAmount Withheld Tax DueTax Due1.1.$4000$4000 $3679$36792.2.$5000$5000 $3814$38143.3.$2764$2764 $3769$37694.4.$3823$3823 $3649$3649

WE DO (Refund or WE DO (Refund or Balance Due)Balance Due)

Find the amount of money refunded Find the amount of money refunded or owed by the taxpayeror owed by the taxpayerAmount WithheldAmount Withheld Tax DueTax Due1.1.$4700$4700 $3974$39742.2.$3230$3230 $3769$37693.3.$3100$3100 $3709$37094.4.$4300$4300 $3754$3754

YOU DO (Refund or YOU DO (Refund or Balance Due)Balance Due)

Find the amount of money refunded Find the amount of money refunded or owed by the taxpayeror owed by the taxpayerAmount WithheldAmount Withheld Tax DueTax Due1.1.$3101$3101 $3866$38662.2.$5000$5000 $4112$41123.3.$4753$4753 $5367$53674.4.$3968$3968 $3127$3127

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Today we learned how to determine Today we learned how to determine whether or not we got a refund or whether or not we got a refund or owe money after we pay our taxes.owe money after we pay our taxes.

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56,000 x .3556,000 x .35 3.85 / 100 as a percent3.85 / 100 as a percent 28,500 x .03528,500 x .035

CONSUMER FINANCECONSUMER FINANCE

Chapter 11: Paying TaxesChapter 11: Paying Taxes

Lesson 7: Property TaxLesson 7: Property Tax

DIRECTIONS (Assessed DIRECTIONS (Assessed Value)Value)

MultiplyMultiply Market Value x Assessment Rate = Market Value x Assessment Rate =

Assessed ValueAssessed Value

ALL DO’s (Assessed ALL DO’s (Assessed Value)Value)

Find the assessed value of the Find the assessed value of the propertypropertyMarket ValueMarket Value Assessment RateAssessment Rate1.1.$60,000$60,000 45%45%2.2.$70,000$70,000 50%50%3.3.$75,000$75,000 40%40%4.4.$65,000$65,000 52%52%5.5. $67,250$67,250 47%47%6.6. $$ 71,50071,500 60%60%

VOCABVOCAB

Assessed ValueAssessed Value is a figure based on is a figure based on a percentage of the market value of a percentage of the market value of propertyproperty

Market ValueMarket Value is the selling price of is the selling price of property on the open marketproperty on the open market

Property TaxProperty Tax is a figure based on is a figure based on the percentage of the assessed valuethe percentage of the assessed value

DIRECTIONS (Tax Rates)DIRECTIONS (Tax Rates)

DivideDivide Rate / amountRate / amount

ALL DO’s(Tax Rate)ALL DO’s(Tax Rate) Find the tax rate as a percent of the Find the tax rate as a percent of the

propertyproperty1.1. $3.67 per $100 of assessed value$3.67 per $100 of assessed value2.2. $42.10 per $1,000 of assessed value$42.10 per $1,000 of assessed value3.3. $3.52 per $100 of assessed value$3.52 per $100 of assessed value4.4. $4.01 per $100 of assessed value$4.01 per $100 of assessed value5.5. $37.51 per $1,000 of assessed value$37.51 per $1,000 of assessed value6.6. $50.09 per $1,000 of assessed value$50.09 per $1,000 of assessed value

DIRECTIONS (Property DIRECTIONS (Property Taxes)Taxes)

MultiplyMultiply Assessed Value x RateAssessed Value x Rate

ALL DO’s(Property Taxes)ALL DO’s(Property Taxes) Find the amount of property taxFind the amount of property tax

Assessed ValueAssessed Value Property Tax RateProperty Tax Rate1.1.$27,000$27,000 3.67%3.67%2.2.$35,000$35,000 4.21%4.21%3.3.$30,000$30,000 3.52%3.52%4.4.$33,800$33,800 4.01%4.01%5.5. $31,607$31,607 3.75%3.75%6.6. $$ 42,90042,900 5.01%5.01%

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Today we learned how to calculate Today we learned how to calculate property taxes, assessed values, and property taxes, assessed values, and tax rates on propertiestax rates on properties

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32.56 / 1,00032.56 / 1,000 52% as a decimal52% as a decimal Multiply your 2 answersMultiply your 2 answers Round to 3 decimal spotsRound to 3 decimal spots

CONSUMER FINANCECONSUMER FINANCE

Chapter 11: Paying TaxesChapter 11: Paying Taxes

Lesson 8: Effective Tax RateLesson 8: Effective Tax Rate

VOCABVOCAB

Effective Tax RateEffective Tax Rate is the is the assessment rate time property tax assessment rate time property tax raterate

DIRECTIONS (Effective Tax DIRECTIONS (Effective Tax Rate)Rate)

DivideDivide Property Tax / amountProperty Tax / amount

Write the % as a decimalWrite the % as a decimal MultiplyMultiply

The 2 answersThe 2 answers Round 3 decimal spots (thousandths)Round 3 decimal spots (thousandths)

I DO (Effective Tax Rate)I DO (Effective Tax Rate) Calculate the effective tax rate for Calculate the effective tax rate for

each propertyeach propertyAssessment RateAssessment Rate Property Tax Property Tax

RateRate1.1.35%35% $36.70 per $1,000$36.70 per $1,0002.2.50%50% $2.50 per $100$2.50 per $1003.3.40%40% $36.70 per $1,000$36.70 per $1,0004.4.35%35% $36.70 per $1,000$36.70 per $1,000

WE DO (Effective Tax WE DO (Effective Tax Rate)Rate)

Calculate the effective tax rate for Calculate the effective tax rate for each propertyeach propertyAssessment RateAssessment Rate Property Tax Property Tax

RateRate1.1.25%25% $47.23 per $1,000$47.23 per $1,0002.2.30%30% $42.16 per $1,000$42.16 per $1,0003.3.42%42% $3.70 per $100$3.70 per $1004.4.37%37% $4.20 per $100$4.20 per $100

YOU DO (Effective Tax YOU DO (Effective Tax Rate)Rate)

Calculate the effective tax rate for Calculate the effective tax rate for each propertyeach propertyAssessment RateAssessment Rate Property Tax Property Tax

RateRate1.1.33%33% $425 per $10,000$425 per $10,0002.2.39%39% $3.70 per $100$3.70 per $1003.3.42%42% $1.60 per $100$1.60 per $1004.4.36%36% $22.00 per $1,000$22.00 per $1,000

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Today we learned how to calculate Today we learned how to calculate the effective tax rate on a propertythe effective tax rate on a property

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