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Ch 3: Personal Taxes

About This Chapter

Use these lessons to learn about various types of federal, state and local taxes, how they are administered and the pluses and minuses of various systems. Use the lesson quizzes and the chapter exam to evaluate your learning.

Personal Taxes - Chapter Summary

An understanding of the types of taxes you pay is important financial knowledge. This chapter examines all kinds of taxes, including income taxes, payroll taxes and real estate taxes and look at how they are determined. You can also examine formulas that determine the amount of taxes. After you've watched a lesson, complete a short quiz on the topics covered and see if there is any information in the lesson you need to further review. These lessons look at tax topics including:

  • How the government uses personal taxes
  • What the Internal Revenue Service (IRS) does
  • Arguments for and against a progressive tax system
  • The differences between payroll and property taxes
  • How to decrease tax liability

Lesson Objective
Purpose & Types of Personal TaxesGet information on types of taxes and how governments use tax money.
The Federal Tax System: Filing Taxes & AuditingFind out more about how the IRS works, including the auditing process.
Income Tax: Tax Liability & DeductionsLearn how to use a person's tax filing status to determine the amount of taxes owed.
Progressive Tax System: Definition, Pros & ConsExplore how the progressive tax system works and look at its advantages and disadvantages.
Corporate Tax Rate: Definition & FormulaSee how corporate taxes are calculated.
Understanding the Progressive Tax CodeExamine the definition of a progressive tax and how it works.
What is Payroll Tax? - Definition & ExampleDiscover what payroll taxes are and how they are applied.
Interest in Real Property: Types of EstatesLearn about types of estates.
Personal Tax PlanningUnderstand methods for reducing tax liability.

9 Lessons in Chapter 3: Personal Taxes
Test your knowledge with a 30-question chapter practice test
Purpose & Types of Personal Taxes

1. Purpose & Types of Personal Taxes

There are different kinds of personal taxes that a person may incur in their working lives, including sales, payroll, income, capital gains, and property tax. Learn more about the definition and purpose of each of these types of taxes with the help of examples.

The Federal Tax System: Filing Taxes & Auditing

2. The Federal Tax System: Filing Taxes & Auditing

The Federal tax system has different tools in order to make sure the various stakeholders and taxpayers comply with rules and mandates. Learn more about tax filing, audits, and how these methods regulate the tax world.

Progressive Tax System: Definition, Pros & Cons

3. Progressive Tax System: Definition, Pros & Cons

The progressive tax system is a form of taxation in which the tax rate increases as personal income increases. Learn about the definition, pros and cons, and significance of the progressive tax system in America.

What is Payroll Tax? - Definition & Example

4. What is Payroll Tax? - Definition & Example

Payroll tax is a tax paid by employers for the wages of their employees. This tax is usually deducted from the salary of the employees. Learn about the different types of payroll taxes and their definitions and the computation example of the payroll tax from an employer's point of view.

Income Tax: Tax Liability & Deductions

5. Income Tax: Tax Liability & Deductions

Income taxes are paid to the government on earned monies, including wages from jobs and other income sources. Learn about common deductions that are used to determine the amount of income tax owed, and understand the difference between itemized and standard deductions.

Corporate Tax Rate: Definition & Formula

6. Corporate Tax Rate: Definition & Formula

Corporations are taxed at rates that differ from the tax rates for individuals. Explore the definition and formula for corporate taxes and their tax rate. Use this information to calculate corporate taxes based on earnings.

Understanding the Progressive Tax Code

7. Understanding the Progressive Tax Code

A progressive tax code means that individuals who earn a higher income pay more taxes. Learn about the three types of tax codes (progressive, regressive, and proportional) and the primary economic effect for each method of taxation.

Income Tax Issues in Personal Investments

8. Income Tax Issues in Personal Investments

Income tax is based on an individual's income, which can include increases in the valuation of personal investments. Learn the tax issues that can occur through investments related to dividends, interest, capital gains, and rental incomes.

Personal Tax Planning

9. Personal Tax Planning

Planning for personal tax comes with various methodologies in keeping track of what expenses are taxable and what to report. Learn more about income tax, the Internal Revenue Service, deductions, and FSA's.

Chapter Practice Exam
Test your knowledge of this chapter with a 30 question practice chapter exam.
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Practice Final Exam
Test your knowledge of the entire course with a 50 question practice final exam.
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More Exams
There are even more practice exams available in Personal Taxes.

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