Name 10 things your taxes pay for

The federal government of the United States imposes a progressive tax on the taxable income of individuals, corporations, trusts, and estates, Some state and municipal governments also impose income taxes. The first Federal income tax was imposed during the Civil War

under Article I, section 8, clause 1 of the U.S. Constitution •In the 1890s •Sixteenth Amendment was ratified in 1913.

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FICA is the acronym for the Federal Insurance Contributions Act. This act mandates that an employer withhold a set percentage of an employee’s salary each pay period. FICA also requires that the employer match the employee’s amount and contribute the money to a government account known as the Social Security Trust Fund. This fund provides retirement income, as well as disability insurance, Medicare, and benefits for survivors 6.2% of gross compensation up to a limit of $97,500 of compensation The employer is also liable for separate 6.2% Self-employed people are responsible for the entire FICA percentage of 12.4%.

Medicare is the name given to a health insurance program administered by the United States government, covering people who are either age 65 and over, or who meet other special criteria. 1.45% withheld from the worker and a matching 1.45% paid by the employer In the case of self-employed individuals, the tax is 2.9% of net earnings from self-employment

The Internal Revenue Service (IRS) is the United States federal government agency that collects taxes and enforces the internal revenue laws

In 1862, during the Civil War, President Lincoln and Congress created the office of Commissioner of Internal Revenue and enacted an income tax to pay war expenses . The position of Commissioner exists today as the head of the Internal Revenue Service

Some of your wages are exempt from taxation
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Tax exemptions Allowances for dependants Deductions

Standard or itemized

Has anyone has ever seen a W-2? When do we receive a W-2 form?

after the year ends, usually in January

What is the purpose of the W-2 form?

it tells the employee how much money was earned, and how much money was withheld for taxes.

Box 1- Wages, tips, other compensation:  This is the amount that will be entered on the wages line of your tax return.   Box 2 - Federal income tax withheld by your employer.   Box 3 = Social security tax withheld   Box 6 - Medicate tax withheld.   Box 17 - State income tax.   Other information on the W-2: Box 8 - Allocated tips.   Box 10 - Dependent care benefits.  Total dependent care benefits that were paid to you by your employer or incurred on your behalf.

 

Complete the following :
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Earning Statement (answer questions) W-4 (complete the form) W-2 (answer questions) 1040EZ (complete the form)