Name:_____________________________________
Taxes: Web Search
Answer the questions below, using this site for help: www.irs.gov/
*Next Click on Individuals tab then students (on the top of the site). Now go to “Understanding
Taxes”, and then click on “Student Site”.
Now enter where it says tax tutorials and start with Module 1 (Payroll Taxes)
1. What are the three purposes of Social Security Tax (FICA)?
2. What is Medicare tax for?
3. What sorts of things do federal taxes fund?
4. What is the difference between gross and net pay?
5. What are the following rates?
Payroll Tax Rates
Social Security tax rate
Medicare tax rate
Total payroll taxes
Now go to Module 2
6. Let's say I wait tables after school. Are my tips taxable?
Module 3
7. When does your money earn interest?
8. Why is interest considered unearned income?
Module 4
9. What is a dependent?
10. What is the exemption amount for a dependent in 2008?
11. What do you think this means?
12. Read through the parts about qualifying as a dependent. What is one thing you learned about
dependents?
Module 5
13. What are the five filing statuses? (This means you have to identify yourself as one of the
following 5 things)
Module 7
14. Click on the term “Standard Deduction”. What does that word mean?
15. What does “adjusted gross income mean”?
16. What is the standard deduction for a single person?
17. What about a widow?
18. Read the “tax tip”. What do you THINK this means (we will talk about it as a class- so no
worries if you are not sure!)
Module 10
19. The Hope Credit
The Hope Credit allows taxpayers to claim a credit of up to $1,650 based on qualified tuition and
related expenses paid for each eligible student. To be eligible for the credit, the student must be:
Now, go to the Yellow Tab on the top that says “The Whys of Taxes” to answer the
following questions.
Click on “Tax Trivia” under “Cool Stuff”.
20. How many tax returns were filed electronically in 2007?
21. How much do you think the tax was on a gold watch during the civil war?
22. How did the government use the media to inform people about taxes?
23. How much do you think it costs taxpayers for each $100 collected by the IRS?
24. What was the top income tax rate during World War I?
25. About how much money was given to the Presidential Election fund in 2007?
26. What was President Bush’s tax liability in 2007?
27. What was the average annual income in 1913?
Now go to the IRS home page and answer the following.
28. Where is the closest IRS Taxpayer Assistance Center to where you live? (Contact IRS)
29. What was the highest percentage income tax being paid in 1918? Why was it so high?
(About IRS-Brief History)
30. Look at Forms 1040A and 1040EZ. Which looks easier? Why? (Site Map - Individuals - 1040
Central)
31. Keep looking at the 1040A and EZ. According to the titles on the forms, who should use each
form? (Site Map - Individuals - 1040 Central)
32. What's the purpose of a W-4 form? (Home - Most Requested Forms & Publications - Form W-4)