1. Entrance Ticket
What is the difference between a tax deduction and a tax credit? Give an example of each.

2. Deductions
reduce amount $$ you are TAXED ON.
Credits
reduce amount $$ you OWE in taxes.

3. EQ: What does it mean to be financially literate?
Agenda
1) Go Over Tax Return Research
2) Notes
3) Go Over Final Project
4) Project Time
EQ: What does it mean to be financially literate?

4. GO OVER TAX RETURN RESEARCH

5. How do I file my tax returns?
Research deductions & credits
Choose 4 deductions & 5 credits to research

6. NOTES (WRITE DOWN UNLESS GIVEN)

7. W-2 form – statement of your wages for past year Correct tax form
WHAT DO I NEED TO FILE TAXES?
Need at least 3 things:
Personal info. for you and your dependents (SSN, date of birth, address, etc.)
W-2 form – statement of your wages for past year
Correct tax form
Need to file BOTH Federal & State tax forms every year!
Tax due date?
April 15th!

8.
76,500.00
8,415.00
Google, Inc.
1600 Amphitheatre Parkway
Mountain View, CA 94303
76,500.00
5,355.00
76,500.00
1,530.00
Niza Hernandez
300 Primavera Street, Apt. A
Impuesto, CA 90000 CA
76,500.00
2,295.00
76,500.00
765.00

9. Adjusted Gross Income (AGI)
Amount of income you are taxed on (basically)
Total income minus all of your deductions
EXAMPLE: Calculating Your Return
Income = $50,000
Total Deductions: $11,000
AGI = $50,000 – $11,000 = $39,000
Tax Liability = $39,000 x 0.25 = $9,750
Total Credits: $10,500
Total Taxes due = -$750  It is negative so it goes to you!

10. Which form do I need to use?
3 to choose from
1040EZ
1040A
1040

11. 1040-EZ
Short
Marital status
Single, married filing jointly
Age
<65
Dependents
none
Interest income
<$1,500
Taxable income
<$100,000
1040A
Medium
Marital status
Single, married filing jointly
Age
Any
Other
Retirement payments
Own stocks
Student loans
Dependents
yes
Interest income
<$1,500
Taxable income
<$100,000
1040
Long
Marital status
married filing separately, divorced
Other
Self-employed
Sold property
Own stocks
YES itemized deductions
Interest income
>$1,500
Taxable income
>$100,000

12. Where can I file? Online or paper options (online refunds come sooner)
Can DIY with tax forms, pay a professional, or use software like TurboTax
Average cost at = $147

13. CLASS QUIZ!

14. Which form? (1)
Kim is married to Kanye. Kim and Kanye are choosing to file their taxes separately.

15. Which form? (2)
Raul is in a relationship with Jorge. Although they are in a committed relationship, they are not married. They have student loans.

16. Which form? (3)
Rasheed is an 18 year old high school senior working 25 hours a week as a cashier at Target.

17. Which form? (4)
Jessica and Wendy are married and filing jointly. Their chosen careers are social worker and teacher. Together, they make $75,000 a year.

18. Which form? (5)
Warren Buffet makes approximately $13 billion dollars in a year. That includes the $500,000 he accumulates in interest on his savings accounts.

19. FINAL PROJECT

20. Unit 2 Final Project
For this project you are tasked with working in a group to create an informational video clip / commercial that educates the general public on a topic in financial literacy.
In order for your efforts to be successful, your projects must be accurate, engaging, and accessible.
Videos will be limited to 3:30 minutes. Projects are due / will be screened on Friday, January 22nd

21. Let me know if you have other ideas!!!
Project Topics
Budgeting/Checking Accounts/Savings Accounts
Credit Cards and Interest
Building Credit / Understanding Credit Scores/Reports
Housing Finances
College Finances
Taxes
Let me know if you have other ideas!!!

22. Project Time Spend the remaining time deciding on topics and groups
Once you have both, brainstorm some ideas for how you would like to get your information across (almost like a script)