Personal Property Tax
Tax that requires the
owner to pay a
percentage on the value
of their property
real estate
motor vehicles
Primary tax supporting
public education,
emergency services, and
local government
Income Tax
Requires workers to pay a
percentage of their
earned income
federal government
state governments
Amount paid depends on
your tax bracket
Sales Tax
Consumption tax
charged at the point of
purchase for certain
goods & services
VA: 6%
Sales tax in restaurants
may very by county (local government)
FICA
Refers to Social
Security and
Medicare taxes paid
by individuals and
employers
5.65% of gross pay
Employer “matches”
another 5.65%
Understanding Your Paycheck
Gross Pay: Wages & Salary
Deductions: Federal taxes, state taxes, FICA,
and other optional deductions, such as health
insurance, dental and retirement savings.
ake-home pay, calculated by
subtracting deductions from gross pay.
Gross Pay – Deductions = Net Pay
In Your Notes
• Look over the paystub provided.
• Circle & label the employee’s gross pay.
• Draw a rectangle around all the deductions for this
paycheck.
• Circle the employee’s net pay for this paycheck.
• How much did the employee pay in taxes?
• What percentage of the employee’s gross pay went
toward taxes?
Form W-4
A new Form W-4 is required each time
you start a new job.
It determines how much you will pay in
taxes each pay period (per paycheck).
Use a QR Reader on this code to see a
W-4 form. Download the free app if
needed.
Form W-4 – Additional Info
If you claim zero, the
highest amount of
taxes will be withheld
from your paycheck.
Form W-2
The Form W-2 is a federal tax form issued by employers at the end of each year.
Must be distributed to employees by the end of February
Required for filing income taxes by the April 15 deadline
It states the amount of money you earned and how much you paid in taxes throughout the previous year.
Form W-2
Real World Business
Chicago, IL 60640
Irma Money
2301 South Jackson
Chicago, IL 60640
000-00-000
16,680.24
16,680.24 1034.16
1,728.00
241.9216,680.24
IL 12-2222222 16,680.24 440.40
12-2222222
D 2000.00
Real World Business
Chicago, IL 60640
Irma Money
2301 South Jackson
Chicago, IL 60640
16,680.24
16,680.24 1034.16
1,728.00
241.9216,680.24
I
L
12-222222216,680.24 440.40
12-2222222
D2000
1040 EZ
Use this form if…
Income is less than $100,000
Filing as single or married
Under age of 65
No dependents
1040 A
Use this form if…
Income is less than $100,000
Claiming adjustments for student loan
interest
Filing Your Tax Return
In the past, you would prepare your taxes and
mail your complete package in to the Internal
Revenue Service (IRS).
Most people now use TurboTax to prepare
their taxes and then e-file online with the IRS.
Student Tax Simulations
Complete the following modules, then answer the
questions at the end of your notes.
• Lawrence Red Owl
• Cicely King
• Tasha Miller
• Michael Brand
• Jacob Hastings
Use IRA Student Simulator at:
https://apps.irs.gov/app/understandingTaxes/student/simulations.jsp