Outline the process for making tax payments.

Outline should include

  • completing an Internal Revenue Service (IRS) Form W-4, including how to manage withholding amounts
  • reading and interpreting a pay stub
  • identifying key information on an IRS Form W-2
  • explaining the basics of tax preparation and the IRS Form 1040
  • explaining Form 1099 and when it is used.

Process/Skill Questions:

  • Which department collects federal income taxes in the United States?
  • The Federal Insurance Contributions Act (FICA) mandates that every taxpayer in the U.S. must contribute to which two government programs?
  • How much money do you need to earn before an employer must send you an IRS Form W-2?
  • What is a tax deduction? How does it differ from a tax credit?
  • When should one itemize instead of taking the standard deduction?

Teacher Resource: Links to an external site.