7-1 TAX TABLES, WORKSHEETS, AND SCHEDULES Unit 7.1 OBJECTIVES Express tax schedules algebraically. Compute federal income taxes using a tax table and tax schedules.

Key Terms property tax sales tax income tax taxable income tax Internal Revenue Service (IRS) single married filing jointly qualifying widow(er) married filing separately head of household

Key Terms property tax sales tax income tax (taxable income) Tax based on value of owned real estate Tax on purchased goods Tax on gross income from employment

Key Terms Tax Internal Revenue Service (IRS) Money owed Government Agency tasks with collection of Taxes

Key Terms single married filing jointly qualifying widow(er) married filing separately head of household Unmarried taxpayers Married couple who files as one Single female who has lost spouse living alone Married couple who files individually Unmarried supporting people in addition to themselves

Who pays taxes? What are advantages and disadvantages of filing jointly married and separate married? In 2017, married filing separately taxpayers only receive a standard deduction of $6,350 compared to the $12,700 offered to those who filed jointly. If you file a separate return from your spouse, you are automatically disqualified from several of the tax deductions and credits mentioned earlier. Audits are usually separate Married couples who file jointly must complete one shared tax return and jointly take responsibility for the income reported and taxes owed. Filing separately may be beneficial if you need to separate your tax liability from your spouse's, or if one spouse has a significant itemized deduction.

Who pays taxes? What type of taxes Do you pay? Sales & Income Do your parents pay? Sales, Income & Property Most adults pay their property taxes monthly as it’s lumped into their monthly mortgage (along with insurance). Is this wise?

Who pays taxes? What does the statement “Your annual tax changes as your annual income changes” mean? As your income increases so do your taxes

2017 Tax Rates Single

2017 Tax Rates Married Filing Jointly

Example 1 Ron is single. He is using an IRS tax form and calculates that his taxable income is $51,482. The instructions tell him to use the tax table to determine his taxes. How much does Ron owe in taxes?

Example 2 Maria and Don are married taxpayers filing a joint return. Their combined taxable income is $153,900. The IRS offers a tax schedule so that taxpayers can calculate their tax. Use the tax schedule below for married taxpayers filing jointly to calculate Maria and Don’s tax.

CHECK YOUR UNDERSTANDING Using the table above, what taxable income would yield a tax of exactly $8,962.50?

Example 3 The IRS includes the tax schedule for information purposes only. For taxable incomes over $100,000, taxpayers must use the tax worksheet. Here is a portion of the worksheet for married taxpayers filing jointly. Calculate Maria and Don’s tax using this worksheet.

CHECK YOUR UNDERSTANDING Denise and John have a taxable income of $118,675. Use the Married Filling Jointly worksheet to determine the amounts for columns (a) and (c). What is their calculated tax?

EXTEND YOUR UNDERSTANDING Chase has a taxable income of x dollars. This amount is over $100,000, but not over $131,450. Express his tax algebraically.