1. Write in complete sentences. What is the difference between: Tax structures vs. tax bases (Give examples) Tax rate versus tax amount (How is each measured?) Economics Bell Ringer Monday, February 4, 2013 Today’s Handouts: #66 – 02/04 – Bell Ringer #67 = 2/04 – Taxes Review Classwork

2. Marge Simpson gets a job. She has deductible expenses: $4,000 in mortgage payments and $2,500 in charitable contributions. She files as married and her combined income is $120,000. What is their taxable income? Standard Deduction: Single $5,950; Married $11,900 Exemption: Single $3,800; Married $7,600 Economics Bell Ringer Tuesday, February 5, 2013 Today’s Handouts: #66 – 02/04 – Bell Ringer #67 = 2/04 – Taxes Review Classwork

3. You decide to file as a independent, as a single filer, in your last year of college. You worked a summer job and during the year, earning $15,000 in wages. You have no deductible expenses during the year. You qualify for the Education Tax Credit of $2,500. What is your taxable income, overall tax amount and tax rate? Standard Deduction: Single $5,950; Married $11,900 Exemption: Single $3,800; Married $7,600 Economics Bell Ringer Wednesday, February 6, 2013 Today’s Handouts: #58 – Tax Notes #59 – Tax Packet 2 (DUE BY END OF TODAY)

4. Evaluate the taxes of these two people. What is their taxable income, overall tax amount and tax rate Person A works hard and earns $55,000 in wages. She rents an apartment in the city, living paycheck to paycheck (she has student loans and car payments), but able to get by. They have $650 in deductible expenses during the year. They don’t qualify for any tax credits. Couple B has worked hard for a long time and is in the elder years. Their children have grown up and moved on. The couple has a large home and lives a comfortable life. Their income is $250,000. They have $20,000 in deductible expenses. They qualify for a $4,000 hybrid car tax credit because they bought a Prius. Standard Deduction: Single $5,950; Married $11,900 Exemption: Single $3,800; Married $7,600 Economics Classwork Wednesday, February 6, 2013

5. Have your completed Packet #59 out for me to check. If it is not completed now, it is late. What is the difference between taxable income and gross income? What do we add or subtract tax credits from? Economics Bell Ringer Thursday, February 7, 2013

6. From yesterday’s examples Who pays a higher tax rate? Is it fair under ability-to-pay? What is affecting their tax rates? Economics Classwork Thursday, February 7, 2013

7. A young family earns $53,000. They have no deductible expenses during the year. Since they have children and are below an income threshold, they qualify for the Earned Income Tax Credit of $4,250. If they file as married, what is their taxable income, overall tax amount and tax rate? Standard Deduction: Single $5,950; Married $11,900 Exemption: Single $3,800; Married $7,600 Economics Classwork Thursday, February 7, 2013