1. “In this world, nothing is certain but.... http://www.personal.kent.edu/~tkalkbre/todd/Resources/ben_files/image002.jpg death and taxes”

2. “The only difference between death and taxes is.... http://www.cowboypal.com/royrogerscmdec6.jpg that death doesn’t get worse every time Congress meets”

3. April 15 th means...... Tax Day!!

4. Four purposes of taxes Raise $ to pay for gov programs Regulate certain types of business practices/products Income, sales, estate and property taxes are revenue taxes Excise taxes (on gas & alcohol) and tariffs are regulatory taxes

5. Types of taxes Progressive—the more you make, the more you pay (Federal Income Tax) Regressive—the less you make, the more you pay (Social Security, Sales Tax) Proportional—everyone pays the same (marginal tax-corporation pays on profits)

6. Tax Vocab

7. AGI Adjusted Gross Income All the $ you make over a year

8. Credits After you figure out what you owe, credits lower what you pay the IRS Credits are “dollar for dollar”

9. Deductions Expenses the IRS lets you subtract from AGI. Deductions lower taxable income

10. Standard Deduction Fixed dollar amount you subtract from income Married couples deduct $10,900; singles get $5,450

11. Itemized Deduction Expenses individuals can deduct Interest on mortgage payments, medical expenses, charity, etc

12. Exemptions Amount IRS lets you subtract from income Reflects people who depend on your income (your parents and you) http://www.istockphoto.com/file_thumbview_approve/414499/2/istockphoto_414499_paying.jpg

13. Taxable Income Your overall income after deductions and exemptions

14. Withholding “Pay as you earn” taxation Taxes taken out of paycheck while you earn it Better now than later

15. Voluntary Compliance Basis of tax system Citizens comply with tax laws http://www.librarising.com/astrology/celebs/images2/T-Z/wesleysnipes2.jpg I should have paid my taxes!

16. Tax Forms 1040—For people who claim dependents 1040A— More detailed than 1040 1040EZ—Easiest to fill out, can’t claim dependents