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SECTION 2-1 Federal Income Tax pp. 116-118.

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Presentation on theme: "SECTION 2-1 Federal Income Tax pp. 116-118."— Presentation transcript:

1 SECTION 2-1 Federal Income Tax pp

2 Key Words to Know federal income tax (FIT) (p. 116)
Money withheld by an employer from an employee’s paycheck to pay federal government taxes.

3 Example 1 Leia Organa’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?

4 Example 1 Answer 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.

5 Example 2 Han Solo’s gross pay for this week is $386.88.
He is married and claims 1 allowance. What amount will be withheld from Han’s pay for FIT?

6 Example 2 Answer 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 $20.

7 Homework Pg. 117: 1-18 2-1 Federal Income Tax


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