Wetzel

Math 155

8.1 – Percent, Sales Tax, and Income Tax

Is over Of Method:              

Ex.: 

1.)  What percent of 80 is 24?                                  2.)  What is 600% of 53?

Calculating Income Tax:

            1.)  Determine your adjusted gross income.

                        Adjusted Gross Income = Gross Income – Adjustments

                                    Gross Income is amount of income before taxes

                                    Adjustments are tax-deferred payments

            2.)  Determine your taxable income.

                        Taxable Income = Adjusted Gross Income – Exemptions – Deductions

                                    Exemptions are based on how many dependents are claimed

                                    Deductions:

                                                Standard is a flat amount.

                                                Itemized includes all tax deductions.

            3.)  Determine the Income Tax.

                        Income Tax = Tax Computation – Tax Credits

                                    Tax Computation comes from a tax table using your taxable income and filing status.

                                    Tax Credits reduce the amount of tax you owe.

Ex.:   p. 453 #52, 54

HW:  p. 452 # 1 – 53 odd