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NORTH CAROLINA UNPACKING DOCUMENT FOR ECONOMICS AND PERSONAL FINANCE

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Students will be able to complete federal and state taxes using appropriate computations and procedures.

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Students must be able to demonstrate understanding of how disposable income is impacted by payroll deductions.

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Bell-Work/Do-Now: Found under "Real World Connections"

Notes: Found on SlideShow under "Unit Overview Tab" or below under "Notes."

Interactive Activity: Found under "Interactive Activities: NGPF (W-4 & W-2)"

Independent Activity: Found under "Independent Activity NGPF (Paychecks)"

Formative Assessment: Found under "Formative Assessment"

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Students love to imagine what they would do if they won the lottery. If the Powerball was up to 292 million, how would they spend it all? But what is the actual amount they receive?

A single winning ticket sold in the state of California got Monday night’s record multi-billion dollar Powerball jackpot. However, the lucky winner faces a hefty tax bill and will take home much less than the headline prize!

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FinCap Friday (11/11/22): Powerball Tax Bill

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Taxes are the life-blood of a nation and one of the duties REQUIRED of Americans.

The topic of taxes is prevalent in both Personal Finance and Economics.

In Personal Finance: The topic of taxes is concerning:

How much money does a person owe in taxes?

What services are being provided to a person using that tax money?

In Economics: The topic of taxes is concerning:

How does the government make decisions on taxes (Raising/Lowering, Saving/Spending, etc)?

How does the government create and implement/enforce tax policy?

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Information is taken directly from the IRS website.

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Interactive Activities: NGPF (W-4 & W-2)

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Interactive Activities: NGPF (W-4 & W-2)

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This unit has SO MANY resources concerning taxes. This link will take you to the unit resource page as a whole.

For EPF.IE.2.1. focus on...

FINE PRINT: W-4 Form... Looks at a sample W-4 form with questions and answer key.

FINE PRINT: W-2 Form... Looks at a sample W-2 form with questions and answer key.

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#1 free financial literacy curriculum provider in the United States. Free lessons, games, student activities, and daily professional development for teachers. Create your free teacher account today!

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This unit has SO MANY resources concerning taxes. This link will take you to the unit resource page as a whole.

For EPF.IE.2.1. focus on...

MOVE: Paycheck Scavenger Hunt: The objective of this group activity is to have students practice reading a paycheck, distinguishing between gross and net pay, and calculating different tax values. Students race against the clock to complete the entire scavenger hunt loop. As they solve each Scavenger Hunt Card, their answer will lead them to the next one.

CASE STUDY: W-2, W-4, Refunds, Oh My!: In this individual work Case Study, students learn about a teen worker and her first job. She has been told that if she files a tax return that she will be eligible for a tax refund. But, her parents disagree and won’t let her file. Will she be able to convince them and claim her refund?

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#1 free financial literacy curriculum provider in the United States. Free lessons, games, student activities, and daily professional development for teachers. Create your free teacher account today!

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Students will be able to compare and discuss local, state, and federal taxes and how they are utilized.

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From the NCDPI Unpacking Document

Students examine a pay stub with various deductions. Then, students create a TikTok-style video explaining how payroll deductions impact disposable income.

Students analyze various W-2 forms and how various deductions impacted the level of taxable income. Students then explain in one paragraph how deductions impact disposable income.

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Group Activity: Tax Forms and Their Purpose (Reflection activity related to ppt)

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Group Activity: Tax Forms and Their Purpose (Reflection activity related to ppt)

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This packet (specifically activities one and two) will introduce types of taxes as well as basics of tax systems and federal taxes.

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The IRS oversees the tax process, so this a great place to start looking at resources.

For virtually every tax topic they have:

Teacher Resources (Notes, Fact Sheets, Graphic Organizers, etc.)

Blank copies of all the tax forms (W4, W2, 1040, etc.)

Simulations for filing taxes.

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Does teaching about taxes seem as intimidating as completing your yearly tax forms? Don't worry! Understanding Taxes can be customized to fit your own personal teaching style. You have the freedom to choose which activities and methods of instruction work best to meet the needs of your students.

Teaching taxes can take a traditional approach as students complete downloaded worksheets, classroom activities, and assessment pages. Or, students can complete work online and take part in interactive activities and simulations.

what's here:

Custom Resource ListLooking for a way to customize Understanding Taxes to meet your specific classroom needs? Try creating a Custom Resource List that allows you to save lesson plans and their links for later online access.

Lesson Plans Understanding Taxes offers 38 lesson plans. Detailed lesson plans guide your instruction from the introduction of a given tax concept, through its development, to the lesson conclusion. Each lesson plan serves as an instructional guide on how to incorporate tax theory, history, and application into your classroom.

This also gives you the freedom to choose lesson content and activities to use in the classroom.

Educational StandardsHow does Understanding Taxes support instruction in the classroom? There are links to state and national standards in each lesson.

Downloads Each lesson includes downloadable components which can be downloaded individually or as a complete lesson pack. Downloads are in PDF format, with the exception of a series of PowerPoint™ presentations.

Tax Forms for Classroom Use Order tax forms free from the IRS for your classroom.

Confused about tax terms and forms? Interested in learning more about the basic concepts behind taxes? Understanding Taxes can take the mystery out of taxes. The Hows of Taxes includes 14 self-paced modules, offering a step-by-step approach to tax preparation.

Investigate the theory and history behind America's tax system. Who were the key players instrumental in the development of this system? What is the rationale supporting existing and past tax legislation? How can you affect your tax situation? Whatever your interest, there's something for everyone in the 24 student lessons.

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Does teaching about taxes seem as intimidating as completing your yearly tax forms? Don't worry! Understanding Taxes can be customized to fit your own personal teaching style. You have the freedom to choose which activities and methods of instruction work best to meet the needs of your students.

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Reference: Tax Preparation Checklist for Teens

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Understand the terms of the tax debate with our comprehensive tax glossary, including over 100 tax terms and concepts.

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Understand the terms of the tax debate with our comprehensive tax glossary, including over 100 tax terms and concepts. Learn more with TaxEDU

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Students can use this tool to guess how federal taxes are utilized.

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Guess the Government Expenditures | Interactive Economics Practice<

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Guess the Government Expenditures | Interactive Economics Practice

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Do you know what the federal government spends its money on? Play this interactive to see how well you do.

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Source: Treasury dept.

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Key Takeaways

The federal government spends money on a variety of goods, programs, and services to support the American public and pay interest incurred from borrowing. In 0, the government spent $, which was than it collected (revenue), resulting in a .

The U.S. Constitution gives Congress the ability to create a federal budget - in other words, to determine how much money the government can spend over the course of the upcoming fiscal year. Congress's budget is then approved by the President. Every year, Congress decides the amount and the type of spending, as well as provides resources for spending.

Money for federal spending primarily comes from government tax collection and borrowing. In FY 0 government spending equated to roughly $0 out of every $10 of the goods produced and services provided in the United States.

Federal Spending Overview

The federal government spends money on a variety of goods, programs, and services that support the economy and people of the United States. The federal government also spends money on the interest it has incurred on outstanding . Consequently, as the debt grows, the spending on interest expense also generally grows.

If the government spends more than it collects in , then there is a budget deficit. If the government spends less than it collects in revenue, there is a budget surplus. In fiscal year (FY) , the government spent $, which was than it collected (revenue), resulting in a . Visit the national deficit explainer to see how the deficit and revenue compare to federal spending.

Federal government spending pays for everything from Social Security and Medicare to military equipment, highway maintenance, building construction, research, and education. This spending can be broken down into two primary categories: mandatory and discretionary. These purchases can also be classified by and .

Throughout this page, we use outlays to represent spending. This is money that has actually been paid out and not just promised to be paid. When issuing a contract or grant, the U.S. government enters a binding agreement called an obligation. This means the government promises to spend the money, either immediately or in the future. As an example, an obligation occurs when a federal signs a contract, awards a grant, purchases a service, or takes other actions that require it to make a payment. Obligations do not always result in payments being made, which is why we show actual outlays that reflect actual spending occurring.

To see details on federal obligations, including a breakdown by budget function and object class, visit USAspending.gov.

The U.S. Treasury uses the terms "government spending," "federal spending," "national spending," and "federal government spending" interchangeably to describe spending by the federal government.

According to the Constitution's Preamble, the purpose of the federal government is "...to establish Justice, insure domestic Tranquility, provide for the common defense, promote the general Welfare, and secure the Blessings of Liberty to ourselves and our Posterity." These goals are achieved through government spending.

Spending Categories

The federal budget is divided into approximately 20 categories, known as budget functions. These categories organize federal spending into topics based on their purpose (e.g., National Defense, Transportation, and Health).

What does the government buy?

The government buys a variety of products and services used to serve the public - everything from military aircraft, construction and highway maintenance equipment, buildings, and livestock, to research, education, and training. The chart below shows the top 10 categories and agencies for federal spending in FY .

The Difference Between Mandatory, Discretionary, and Supplemental Spending

Who controls federal government spending?

Government spending is broken down into two primary categories: mandatory and discretionary. Mandatory spending represents nearly two-thirds of annual federal spending. This type of spending does not require an annual vote by Congress. The second major category is discretionary spending. The difference between mandatory and discretionary spending relates to whether spending is dictated by prior law or voted on in the annual appropriations process. Another type of appropriation spending is called supplemental appropriations , in which spending laws are passed to address needs that have arisen after the fiscal year has begun.

Mandatory Spending

Mandatory spending, also known as direct spending, is mandated by existing laws. This type of spending includes funding for entitlement programs like Medicare and Social Security and other payments to people, businesses, and state and local governments. For example, the Social Security Act requires the government to provide payments to beneficiaries based on the amount of money they've earned and other factors. Last amended in 2019, the Social Security Act will determine the level of federal spending into the future until it is amended again. Due to authorization laws, the funding for these programs must be allocated for spending each year, hence the term mandatory.

Discretionary Spending

Discretionary spending is money formally approved by Congress and the President during the appropriations process each year. Generally, Congress allocates over half of the discretionary budget towards national defense and the rest to fund the administration of other agencies and programs. These programs range from transportation, education, housing, and social service programs, as well as science and environmental organizations.

Supplemental Spending

Supplemental appropriations, also known as supplemental spending, are appropriations enacted after the regular annual appropriations when the need for funds is too urgent to wait for the next regular appropriations. In 2020, Congress passed four supplemental appropriations to aid the nation's recovery from the COVID-19 pandemic. You can explore the spending related to these supplemental appropriation laws in USAspending.gov's  COVID-19 Spending Profile page.

Spending Trends Over Time and the U.S. Economy

The federal government spent $ in FY . This means federal spending was equal to of the total gross domestic product (GDP), or economic activity, of the United States that year. One of the reasons federal spending is compared to GDP is to give a reference point for the size of the federal government spending compared with economic activity throughout the entire country.

How has spending changed over time? The chart below shows you how spending has changed over the last years and presents total spending compared to GDP.

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Explore federal spending by category or agency and learn how much the United States government spends each year.

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Students will be placed in groups to work on Completing a 1040 activity.

1)Each group will choose one individual from the case scenarios and using the information provided, complete a 1040 on that individual.

2)Each group will answer whether their individual was getting a refund or owed more taxes and how much.

3)Audit a group-groups will exchange their completed 1040 with one another and look for any potential errors. If any errors are found, you will list the errors and explain why your group believes it might be an error.

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How to Fill Out Form 1040 for 2023 | Taxes 2024 | Money Instructor

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Your income and how you file (joint filing if you are married) will affect the amount of taxes you will be responsible for paying

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Info sheets and an application activity asking students to work to repair a local budget deficit.

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Navigate the IRS website for the purpose of locating answers to frequently asked questions about income taxes.

(Resource from EconEdLink)