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Published by amarinocoleh2003, 2019-09-13 14:05:44

What I know about taxes

What I know about taxes

WHAT I KNOW ABOUT TAXES

WHAT ARE TAXES?

Taxes-

A sum of money demanded by a government to support the government itself as well as
specific facilities or services.

WHAT IS A COMMUNITY?

Community-

A group of people with common interest and concern for the common good.

WHAT ARE THE BENEFITS OF TAXES?

Benefits of taxes-

Roads, libraries, military, public schools, police and fire departments, and recreation.

WHAT IS FEDERAL INCOME TAX?

Federal income tax-

Tax is determined by:

 Earned and unearned income
 Higher income = more tax paid

Paid by:

 Majority of people living in the U.S.

Help funds?

 Operations of federal government
 Government programs
 Education
 Defense of the nation
 Disaster relief

WHAT IS STATE INCOME TAX?

State income tax-

Tax is determined by?

 Earned and unearned income
 Higher income = more tax paid

Paid by?

 Those living in states with a state income tax
 Not all states have a state income tax

Help funds?

 Varies by state
 State highways
 Operations of state government

WHAT IS A PAYROLL TAX?

Payroll tax-

A tax on earned income that supports the social security and Medicare programs

HOW DO EMPLOYERS CONTRIBUTE TO
PATROLL TAXES?

Employers’ contribution to payroll tax-

Withholding from an employee’s compensation and paying an employer’s contribution for
social security and Medicare taxes under the federal insurance contributions.

WHAT IS A PROPERTY TAX?

Property tax-

A tax on property, such as land, buildings, and motor vehicles.

WHAT IS SALES TAX?

Sales tax-

Tax on purchased goods and services

WHAT IS AN EXCISE TAX?

Taxes collected from the seller or retailer and as such often remain hidden in the price of a producer or service

WHAT ARE THE TWO MOST IMPORTANT
THINGS TO KNOW ABOUT TAXES?

Two important things about taxes-

 When to pay them
 How much you’re paying


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