WHAT I KNOW ABOUT TAXES

What are taxes?

- Taxes are a sum of money you have to pay to the government to support government facilities or services.

What is a community?

- A community is a group of people working together for a common good. 😄👍🏻

BENEFITS OF TAXES

• Provide resources for protection
• Education
• Repair and build roads
• Maintain parks and trails

WHAT IS INCOME TAX?

• A tax on earned and unearned income
• Can be federal or state tax and maybe both, if your state has income tax

WHAT IS PAYROLL TAX?

• A tax on earned income
• Supports Social Security and Medicare
• Paid by individuals who work for pay and employers

WHAT IS A PROPERTY TAX?

• A tax on property someone owns or is in possession of
• Can be found on homes, buildings, and motor vehicles
• Goes towards schools and state projects

WHAT IS SALES TAX?

• This a tax paid on anything purchased in retail stores
• Usually isn’t found on food products
• Mostly on clothes, containers, and shoes

WHAT IS EXCISE TAX?

• Taxes charged on consumption items
• Some examples are cigarettes, gas, hotel rooms, plane tickets, and alcohol
• Usually included in price of item

What is a W2 form?

- A form that tells you how much money you made in a year and how much you paid in taxes.

What is a W4 form?

- A form you fill out to give to your employer which tells them how much to take out of your paychecks for taxes.

Date to pay taxes by:

April 15th

2 IMPORTANT THINGS ABOUT TAXES

• If you can’t pay your taxes on time then contact the IRS
• Save your W2 form because you will need it to file your taxes for that year