Taxes, Salary, Growth and Money

Choices
Part 1: What are Taxes
Answer the following questions and fill out the tables below.
1. What are Federal Taxes?
a. A tax levied by the United States Internal Revenue Service (IRS) on the
annual earnings of individuals, corporations, trusts and other legal entities.
Federal income taxes are applied on all forms of earnings that make up a
taxpayer's taxable income, such as employment earnings or capital gains.
2. What are State Taxes?
a. Most individual U.S. states collect a state income tax in addition to federal
income tax. The two are separate entities. Some local governments also
impose an income tax, often based on state income tax calculations. Fortythree states and many localities in the United States may impose an income
tax on individuals.
3. Why do we have to pay taxes?
a. The government uses taxes to pay for things that most people use, such as
roads, schools, libraries, police and fire protection. Taxes also pay for special
programs like welfare and social security. There is sales tax on the things you
buy, income tax on the money you make, property tax and other kinds of tax.
4. What is the 16th amendment to the Constitution?
a. The Sixteenth Amendment (Amendment XVI) to the United States
Constitution allows the Congress to levy an income tax without apportioning
it among the states or basing it on the United States Census.
5. What is Gross Income/Salary?
a. An employee's gross pay is the amount of his wages before any deductions,
including taxes and benefits. Gross pay may be determined by the amount an
employee works, as in hourly pay, or at a set rate, as in a weekly salary.
6. What is Net Income?
a. In business, net income (net earnings, net profit, and informally, bottom line)
is an entity's income minus cost of goods sold, expenses and taxes for an
accounting period.
Part 2: Salary and Taxes
1. Go to your cacareerzone.org or look on your Mash-up and find your two occupations
you want to pursue and write them below with the lowest annual gross
Wages/income/salary.
2. Go to the http://www.irs.com/articles/2015-federal-tax-rates-personal-exemptions-andstandard-deductions and find both Occupations 2015 Federal Tax Rate and fill in the
chart below.
3. Go to https://www.ftb.ca.gov/forms/2015_California_Tax_Rates_and_Exemptions.shtml
and find both Occupations 2015 State Tax Rate and fill in the chart below.

Taxes, Salary, Growth and Money

Choices
CAcareerzone
Occupation
Fashion
designer
Mental health
Counselor

Lowest
Gross
Salary
$32,370
$25,890

Federal
Deduction
%
15%=
-$4855
15%=
-3883

State
Deductio
n%
6%=
-1942
6%=
-1553

Annual
Net
Salary

Monthly
Net
salary

$25573

$2131

$20454

$1704

Part 3: Occupation Projections 2012-2022

1. Look up the top 5 highest, fastest and New Jobs in the U.S and list them
below

1
2
3
4
5

Oral and maxillofacial

surgeons
Physicians and surgeons,
all other
Surgeons
Obstetricians and
gynecologists
Internists, general

Industrial-organizational
psychologists
Personal care aides

Personal care aides

Home health aides

Insulation workers,
mechanical
Interpreters and
translators

Retail salespersons
Home health aides

Registered nurses

Combined food
preparation and serving
workers, including fast
food

2. Are any of your occupations in any of these categories?

No.

Part 4: Make Money Choices

1. Go to cacareerzone.org and login.
2. Go to GROW and Select Make Money Choices
3. Select PICK YOUR SALARY
4. In the Box EXPECTED ANNUAL SALARY put your ANNUAL Salary in from
the chart above. Make sure you do NOT put in your GROSS Salary. Everyone
has to pay taxes =(
Expenses
Housing Expense
Utilities Expense
Food Expense
Entertainment

Cost
$1147
$75
$250
$100

What did you choose

Rent an apartment
Cell, gas, water, electric, trash, internet
Mostly eat at home
Go out a couple times a month

Taxes, Salary, Growth and Money

Choices
Expense
Clothing Expense
Transportation
Expense
Health Care
Expense
Education Student
Loan
Savings
Investment
Other Expenses
Total expenses
Total Yearly
Expenses
Monthly Leftover
Money:
Yearly Leftover
Money
Monthly Savings +
Leftover Money
Yearly Savings +
Leftover Money

$650
$350

Fashion addiction
Used compact car

$87

Group plan

$91

State school with some financial aid

$282
$0
$3032
$36384

3032*12= 36384

$769
$9228

769*12=9228

$1820

282+769=1820

$12612

3384+9228