Taxes Deducted from Pay check


A. Federal income tax

1. Federal income tax is a system monitored by IRS ( Internet Revenue

service), which collects money from individuals based on their income level.

Federal income tax must be filled by April 18th every year.

2. if you earn less than the minimum amount, a tax return is not necessary. In general, if your taxable income for last year fell below $7950 for a single taxpayer or $15,900 for a married couple


Bibliography:2. "What Is Federal Income Tax?" QuizLaw: Simple Answers to Complex Legal Questi83,00ons.

Web. 06 Dec. 2011. <http://www.quizlaw.com/what-is-federal-income-tax/>.


B. State Income Tax

1. State income tax is imposed in addition to federal income tax

2. 43 states impose state income tax

3. tax rate varies

Bibliography:

1. State Income Tax." Wikipedia, the Free Encyclopedia. Web. 01 Dec. 2011. <http://en.wikipedia.org/wiki/State_income_tax>.


C. Social Security Tax

1. social security tax is a program set up by the U.S. federal government that

provides retirement income, disability income and other financial benefits to those who qualify.

2. The program is funded by taxes on earned (job) income.

Bibliography:

1.AARP. "Social Security and Medicare." Www.Lifetuner.org. AARP. Web. 7 Dec. 2011. <http://www.lifetuner.org/social-security-and-medicare>.

D. Medicare

1. Medicare is a social insurance program administered by the united states government providing health insurance coverage to people who are aged 65 and over; to those who are under 65 and are permanently physically disabled or who have a congenital physical disability; or to those who meet other special criteria.

2. Medicare is health insurance to the following

  • people 65 or older

  • people under 65 with disabilities

  • medicare A ( hospital insurance)

  • medicare B ( medical insurance)

  • medicare C ( also known as medical advantages)

  • medicare D ( medical prescription coverage)
Bibliography:

1."Medicare (United States)." Wikipedia, the Free Encyclopedia. Web. 08 Dec. 2011. <http://en.wikipedia.org/wiki/Medicare_(United_States)>.