Workshop Seven

📘 What You’ll Learn

1) Why We Pay Taxes

Taxes fund public services like schools, roads, safety, and healthcare. They’re how communities share the cost of essential programs.

2) Types of Taxes

• Income Tax: Paid on wages, salaries, and self-employment income.
• Payroll Taxes: Social Security and Medicare, withheld automatically.
• Sales Tax: Paid on certain goods and services at checkout.
• Property Tax: Paid by homeowners, usually locally assessed.

3) Filing a Tax Return

Most workers file a return once a year (typically by April 15). Employers issue a W-2 for employees; independent contractors usually receive a 1099.

4) Refunds vs. Owing

If too much was withheld, you receive a refund. If not enough, you’ll owe. You can adjust your W-4 to fine-tune withholding.

5) Filing Options

• File yourself (IRS Free File, if eligible).
• Use tax software.
• Hire a preparer if your situation is complex.

Always file on time — even if you can’t pay in full. Late-filing penalties are worse than late-payment penalties.