2.  Income tax: › Tax paid on the amount of money you make › Only pay on taxable amount › Tax is withheld from your paycheck › Paid to state and federal government › Pays for military services, transportation, research, postal services, safety, education

3.  Money withheld from current paycheck  Matched by employer  Comes back to you as benefits when you retire, or have specific changes in work status  Benefits: disability, survivors’ benefits, retirement benefits, health insurance (Medicare) benefits, unemployment insurance, workers’ compensation

4.  Tax paid to the local government  Different for each state  Counties can add an additional amount  Pays for local and state needs

5.  Source of money for local governments  Based on the value of property: land and buildings  Only paid by the owner of the property  Pays for health services, safety, education, transportation

6.  Should be fair – each pay fair share  Laws should be clear and simple  Collected at a convenient time  System should be stable  System should be flexible

7.  As a citizen, you share the expense for the services you receive  To change the system – VOTE

9.  Gather income information: W-2’s, interest income, stock income, bond income, etc.  Gather expenditure information: child care, health care, property tax, education expense, professional expenses  Personal information: filing status, dependents, address, social security number