Kim Wood s Only Consumer Math

Taxes

Taxes are part of all are lives. In this discussion you have the opportunity to look at one particular type of tax. Choose between finding property tax, sales tax or income tax. Share your thoughts on paying taxes and post your answers to one of the three questions listed below.

1. Calculating Property Tax

   Go to http://www.dat.state.md.us/sdatweb/taxrate.html. What would be the county tax on a property in Dorchester subdivision assessed at $240,000? In Allegany subdivision, what would be the difference in county property tax on a $400,000 property in Barton and one in Frostburg?

2. Calculating Sales Tax

   Go to http://www.taxadmin.org/fta/rate/. It’s August and you need to buy school clothes and supplies for your five children. You live in the northwestern corner of Connecticut, within easy driving distance of both Massachusetts and New York State. What would the sales tax in each state be on a total of $830 worth of purchases? If shopping outside the state would cost around $20 in gas, in which state would this shopping trip cost the least?

3. Calculating Income Tax: Married Couple

   Go to www.irs.gov/pub/irs-pdf/i1040tt.pdf. The 2010 tax tables (or current year) will come up as a pdf file. What is the tax for a head of household with a taxable income of $31,430? How much tax would a married couple filing jointly pay on $66,980? What about if they filed separately?