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Unformatted text preview: Taxes
Five Types of Taxes
Taxes on earnings
Income tax (progressive) The more you make the more you pay
Use taxes –don’t wanna pay?
don’t use it
Airport landing fees 6 Federal Taxes: The Big Picture
Federal Taxes: The Big Picture
Totals 2.5 Trillion Dollars 1,371 784 281 6.2% Soc. Sec. + 1.45% Medicare
for taxpayers plus employer
match (15.3% total) 56 12 2 Everyday people (us) Source: IRS Statistics (In Billions of Dollars)
7 Fiscal Policy
Fiscal Policy Congress determines fiscal policy by passing tax laws to raise revenues, and then appropriates spending, as approved by the President
Congress uses fiscal policy to encourage economic and social behaviors
Home ownership Credit card debt Savings initiatives 8 First Start With Good Records
First Start With Good Records Current tax forms and instruction booklets Social security numbers Copy of previous year’s returns W2 form from employer 1099 forms (interest, self employment) 1098 (mortgage interest paid) Receipts, documentation Investment & business expense documents
9 IRS Matching Program
IRS Matching Program All records sent to the IRS such as W2s and 1099s are matched by computer against YOUR tax return based on social security number provided…be sure these documents match the amounts on your return 10 Taxable Income Recap
Taxable Income Recap Greater of Gross Income Schedule A Minus Adjustments =
Minus or Minus Standard Deduction Exe...
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This document was uploaded on 02/12/2014.
- Spring '14