1. 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.

2. 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

3. 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

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

5. 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

6. 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.

7. 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?

8. 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

9. 2017 Tax Rates Single

10. 2017 Tax Rates Married Filing Jointly

11. 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?

12. 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.

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

14. 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.

15. 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?

16. 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.