Paying Your TaxesChallenge:To legally pay the lowest amount of tax possible.Getting Organized:STEP1 Have you ever listened to your parents talk about income tax? Did it sound like they were talking a foreign language? That's because they were. The most difficult part of taxes is the language used by the government. As you do the following activities below you'll find this glossary a useful tool to consult tax terms. Gathering Information:STEP 2 For this activity you temporarily return to your teenage years and assume the role of either Music Girl or Pizza Dude. This is your first job and are you ever excited because finally you are earning some cash! As this exercise demonstrates, not all of it will make it to your pocket. Follow these steps when as you read through the information on Pay Day! Follow the link to Music Girl or Pizza Dude (The difference is that Pizza Dude earns tips.) Read the information. Follow the link to "How do you want to pay"? Read the information, and return to Music Girl or Pizza Dude. Follow the link to Music Girl or Pizza Dude's "Paycheck." Read the information. You're done. STEP 3 Where does all your tax money go? Follow these steps and read carefully. There will be a quiz on the information at It's Your Town ! Read the opening page to "It's Your Town" and follow the link to "The Mayor." Read the information about local taxes and follow the link to "The Governor." Read the information about state taxes and follow the link to "The Senator." Read the information about federal taxes and follow the link to "Find out more." Read the additional information about federal, state and local taxes, and follow the link to "Reporter's Challenge." Take the quiz. Submit your answers. Redo any incorrect answers. Show your instructor the perfect result. Sorting and Analyzing:STEP 4 What is Fair? Visit this site and follow the directions below. The site has you play the role of a detective to determine which type of taxation is the fairest: regressive, progressive, or proportional Read the opening page to "What is fair?" and follow the link to "Outer Mongolia." Read the information about regressive taxation, and follow the link to "How does it work?" Follow the link to "Dead Man's Gulch," and read the information about progressive taxation. Follow the link to "How does it work?" Follow the link to "Hamalot City," and read the information about proportional taxes. Follow the link to "How does it work?" Follow the link to "The Detective's Challenge," take the quiz, submit the answers, retake until you receive a perfect score. Show your instructor the perfect results. Follow the link to "Solving the case," and read "The Report." Creating a Solution: STEP 5 Complete a W4 form and a 1040A form based on the salary you chose in square 1. Ask your instructor for the forms or download them from the IRS site. You're filing status is "Single." On line 29A of the 1040A form, it asks for the amount of federal income tax withheld from Form W-2. Use the following steps to determine the amount to enter on this line:
Evaluation: Prepare a statement (written or oral) that completes these thoughts: Even though completing tax forms is more painful than a bee sting, we need taxes because…. I plan to make it tolerable for myself when I complete my taxes by…. Return to: Consumer Game | CAP | Squalicum | District |