Federal Income Tax pp SECTION
Click to edit Master text styles Second level Third level Fourth level Fifth level 2 SECTION Copyright © Glencoe/McGraw-Hill MBA, Section 2-1, Slide 2 of Section Objective Read: tables to find the amount withheld for federal income tax
Click to edit Master text styles Second level Third level Fourth level Fifth level 3 SECTION Copyright © Glencoe/McGraw-Hill MBA, Section 2-1, Slide 3 of federal income tax (FIT) (p. 116) Money withheld by an employer from an employee’s paycheck to pay federal government taxes. Key Words to Know
Click to edit Master text styles Second level Third level Fourth level Fifth level 4 SECTION Copyright © Glencoe/McGraw-Hill MBA, Section 2-1, Slide 4 of What do you do when your bills are more than your paycheck amount? Jack’s Jackpot p. 116
Click to edit Master text styles Second level Third level Fourth level Fifth level 5 SECTION Copyright © Glencoe/McGraw-Hill MBA, Section 2-1, Slide 5 of Carla Garza’s gross pay for this week is $ She is married and claims 2 allowances—herself and her husband. What amount will be withheld from Garza’s pay for FIT? Example 1
Click to edit Master text styles Second level Third level Fourth level Fifth level 6 SECTION Copyright © Glencoe/McGraw-Hill MBA, Section 2-1, Slide 6 of Steps: 1.Find the income range from the federal tax tables on pages in your textbook. 2.Find the column for 2 allowances. 3.The amount of income to be withheld is $19. Example 1 Answer
Click to edit Master text styles Second level Third level Fourth level Fifth level 7 SECTION Copyright © Glencoe/McGraw-Hill MBA, Section 2-1, Slide 7 of Lance Han’s gross pay for this week is $ He is married and claims 1 allowance. What amount will be withheld from Han’s pay for FIT? Example 2
Click to edit Master text styles Second level Third level Fourth level Fifth level 8 SECTION Copyright © Glencoe/McGraw-Hill MBA, Section 2-1, Slide 8 of Steps: 1.Find the income range from the federal tax tables on pages in your textbook. 2.Find the column for 1 allowance. 3.The amount of income to be withheld is $31. Example 2 Answer
Click to edit Master text styles Second level Third level Fourth level Fifth level 9 SECTION Copyright © Glencoe/McGraw-Hill MBA, Section 2-1, Slide 9 of Use the tax tables on pages in your texbook to find the amount withheld. Joseph Napoli, single. Earns $524 per week. Claims 2 allowances. What is the FIT withheld? Practice 1
Click to edit Master text styles Second level Third level Fourth level Fifth level 10 SECTION Copyright © Glencoe/McGraw-Hill MBA, Section 2-1, Slide 10 of $48 Practice 1 Answer
Click to edit Master text styles Second level Third level Fourth level Fifth level 11 SECTION Copyright © Glencoe/McGraw-Hill MBA, Section 2-1, Slide 11 of Use the tax tables on pages in your textbook to find the amount withheld. Amanda Hagel earns $476 a week. She is married and claims 2 allowances. Next year she will have a child and will claim an additional allowance. How much less will be withheld for federal income tax next year? Practice 2
Click to edit Master text styles Second level Third level Fourth level Fifth level 12 SECTION Copyright © Glencoe/McGraw-Hill MBA, Section 2-1, Slide 12 of $312 Practice 2 Answer
Federal Income Tax 2-1 END OF SECTION