You and TaxesYou and Taxes

What are taxes?What are taxes?

1. Income Tax 1. Income Tax

Is taxes that are taken directly out of your check.

Is taxes that are taken directly out of your check.

Other types of taxes: Other types of taxes:

Property Tax, Real estate tax, Sales tax, inheritance tax

Property Tax, Real estate tax, Sales tax, inheritance tax

What’s the point? What’s the point?

Why do we pay taxes?Why do we pay taxes?

Taxes pay for things like roads, national defense, government jobs, schools, public libraries, law enforcement, government programs

Taxes pay for things like roads, national defense, government jobs, schools, public libraries, law enforcement, government programs

How do you they know?How do you they know?

W-4: A form you fill out before you start working. The employer uses this to see how much money to with hold from your check.

W-4: A form you fill out before you start working. The employer uses this to see how much money to with hold from your check.

In a W-4 you will specify:whether you’re married or singlehow many allowance you claimhow many dependents you have

In a W-4 you will specify:whether you’re married or singlehow many allowance you claimhow many dependents you have

What do you need to file?What do you need to file?

W-2:you receive this in Jan. that tellshow much you made last yearand how much you paid in taxes.

W-2:you receive this in Jan. that tellshow much you made last yearand how much you paid in taxes.

You need this form to get your taxes done. You can do your own taxes or you can pay an accountantto do your taxes for you.Ever heard of H & R block???

You need this form to get your taxes done. You can do your own taxes or you can pay an accountantto do your taxes for you.Ever heard of H & R block???

What they use to file..What they use to file..

1040EZ:This is what most of you would use to do your taxes.If you do not have children and make less than $100,000

1040EZ:This is what most of you would use to do your taxes.If you do not have children and make less than $100,000

When you receive money after you file your taxes that meanthat you were taxed more than you should have been.If you have to pay taxes that means that you were nottaxed enough that year.

When you receive money after you file your taxes that meanthat you were taxed more than you should have been.If you have to pay taxes that means that you were nottaxed enough that year.

What are deductions?What are deductions?

Itemized deductions:Things that you can take off your income.Ex. paying interest, charitable donations, education credits.

Itemized deductions:Things that you can take off your income.Ex. paying interest, charitable donations, education credits.

The more itemized deductions you have, the moreyou will receive back in taxes.

The more itemized deductions you have, the moreyou will receive back in taxes.

Standard Deduction:A $ amount that you do not have topay taxes on if you can’t itemize.

Standard Deduction:A $ amount that you do not have topay taxes on if you can’t itemize.

Itemized DeductionsItemized Deductions

Itemized Deduction:Things like paying Interest on mortgageor student loans.Giving to charitiesEducation expenses

Itemized Deduction:Things like paying Interest on mortgageor student loans.Giving to charitiesEducation expenses

If you total up all of those amounts and they aremore than the standard deduction ($5000)then you would want to itemize.

If you total up all of those amounts and they aremore than the standard deduction ($5000)then you would want to itemize.

Other informationOther information

• AGI (Adjusted Gross Income) this is the amount after you subtract your reductions.

• Dependent: Someone who depends on a tax payer (usually a child)

• Gross Income: when you get paid, it’s the money before taxes are taken out.

• Joint Return: When you file with your husband or wife.