Agribusiness Library LESSON L060056: FEDERAL AND STATE INCOME TAXES.
Lesson 1 Understanding Federal and State Income Taxes.
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Transcript of Lesson 1 Understanding Federal and State Income Taxes.
Lesson 1
Understanding Federal and State Income Taxes
Next Generation Science/Common Core Standards Addressed!
CCSS.ELA Literacy. RST.11Integrate and evaluate multiple sources of information presented in diverse formats and media (e.g., quantitative data, video, multimedia) in order to address a question or solve a problem.‐12.7
Agriculture, Food and Natural Resource Standards Addressed!
ABS.01.01. Apply micro- and macroeconomic principles to plan and manage inputs and outputs in an AFNR business.
– ABS.01.01.01.a. Examine and provide examples of microeconomic principles related to decisions about AFNR business inputs and outputs (e.g., supply, demand and equilibrium, elasticity, diminishing returns, opportunity cost, etc.)
Bell Work / Student Learning Objectives
Discuss why the tax system was started.
Explain general principles of taxation.
What is needed to fill out state and national tax forms?
Terms
Business expenses Depreciation Excise tax Gross income Internal Revenue
Service Retirement plans Self-employment tax
Interest Approach
•Write down at least 20 things that you know tax money pays for.
• How important are each of these and how do they relate to you personally.?
Why do we need taxes?
What would be different if taxes were not collected?
Common Uses of Taxes schools roads payment of elected
officials police military forces public buildings firefighters bridges
1st US Income Tax
The first US income tax was initiated in during the Civil War to help pay for war expenses, it was repealed in 1872.
The 16th. Amendment to the US Constitution was ratified in 1913 establishing a permanent federal income tax.
What does a taxation program need in order to be
successful?
Characteristics of a Successful Taxation Program
Convenient for the taxpayers to contribute to.
Flexible to the yearly changes in the economy.
Considers all expenses and charges taxpayers accordingly.
All citizens are taxed equally based on income.
How do I fill out tax forms?
Important Tax Sites
Internal Revenue Service –1040 EZ
–Schedule F
–Turbo Tax
Taxation Terminology
Gross Income: All the income you receive in the form of money, property, and services not exempt from taxes.
Business Expenses: Deductions that are costs of operating your business.
Taxation Terminology
Self-employment Tax: A Social Security and Medicare tax for individuals who work for themselves.
Net Income, actual “in your pocket” income after deductions.
Taxation Terminology Retirement Plans: Savings plans that offer
tax advantages to set aside money for your own and your employee’s retirement. ERA, PERA, and similar funds are employer matched to a certain percentage.
401K’s are investments taken out of your wages prior to taxation.
Taxation Terminology
Excise Taxes: Taxes that can be credited to you depending on the kind of fuel you purchased, whether it was taxed, and the purpose that the fuel was used for.
Review/Summary
Why the tax system was started?
Explain general principles of taxation.
Demonstrate how to fill out state and national forms.
The End!