General Information

Title: Income Taxes

Subject Area: Social Studies/Economics

SOL 7.7 - Virginia Standards of Learning

The students will describe the role of the governments in the United States economy, with emphasis on:

• provision of public goods and services;
• protection of consumer rights, contracts, and property rights;
• the impact of government taxation, borrowing, and spending on individuals and on the production and distribution of goods and services; and
• the role of the Federal Reserve System and the impact of monetary policy on the money supply and interest rates.

Grade Level: 8

Lesson Topic: The impact of government taxation on individuals.

Descriptive Overview: This lesson will allow students to complete a 1040 income tax from. Students will use information provided by a W2 form to complete this task.

Advantages of Medium: Students will be able to solicit web sites for information on completing a tax return.

Lesson Specifics

Lesson Objectives/Goals: The student will:

• define income tax.
• complete a 1040 tax form.
• describe the details of the tax form.

Assumed Skills or Prerequisite Skills:

• Students must know the terminology provided from day one of Federal Reserve Unit.
• Students must also have a basic understanding of the concept of supply and demand

Learning Environment: Teachers will need to download 1040 tax forms and instructions.

Instructional Set

Imagine you are working at a job that pays you $40,000 a year. What percentage of that income will be collected as taxes? Why does the government have the right to part of your income?

Gaining Attention: Not applicable

Orienting the Lesson: Not applicable

Stimulating Recall of Prerequisites: Not applicable

Key Questions: Not applicable

Teaching Strategies

1. Review the purpose of taxes with students.
2. Inspect the 16th amendment. Discuss the impact of this law on individuals
3. Define Income tax.
4. Discuss the preparation of Federal Income Tax Returns.
5. Download copy of the 1040 tax form
6. Give the students fictitious information on the W2 form so that they may complete the tax form
7. Students should complete the 1040 form individually.
8. Orally review the information that should be completed on the tax form

Terminology/Vocabulary:

Income Tax

Practice: Not applicable

Assessment: After students have completed their 1040 form, teachers should have the students answer these Tax Return Questions in their notebook.

Enhancements

• Divide the students into groups. Give each group a different W-2 form. After each group has completed their tax form, discuss the difference in income and taxes paid.
• Debate the "fairness" of Income tax as a class. Establish pro and con arguments for the continuance of this tax.

Extensions

Not applicable