Monetary and Fiscal Policy
Part 1
Due on March 18 at the end of the period!
Click on the FED101 website to get an overview of the Federal Reserve System and Monetary Policy. You need to look through the 5 sections - History, Structure, Monetary Policy, Banking Supervision and Financial Services - and answer the multiple choice questions that correspond. (Please get the handout from me!)
Part 2
Due on March 20 at the beginning of class.
Download the PDF document titled "The Fed" (located in the Monetary Policy folder in the locker). Read the document and answer the questions. Submit the answers to the drop box.
Part 1
Due March 26 at the beginning of class - bring a typed copy to class!
What is fiscal policy?
Use the Internet to reserarch fiscal policy. Write a detailed and specific paragraph explaining fiscal policy. Your MUST include citations at the bottom of the page!!
Below you will find links from the IRS website that explain the how's of taxes. The goal of this assignment is to familiarize yourself with the terms and processes associated with taxes.
Directions: For each part, use the link to answer the questions. Your answers must be in your own words! For the "quick check" provide your score (for example: if there are 4 quick check questions and you got 1 wrong you would write something like "3 out of 4 - I got #2 wrong."
All parts (1-7) are due in the drop box by the end of class on Monday, March 30.
Part 1 - Payroll Taxes and Federal Income Tax Withholding
http://www.irs.gov/app/understandingTaxes/hows/tax_tutorials/mod01/tt_mod01_01.jsp
- What are payroll taxes?
- What benefits do Social Security taxes provide?
- What does the revnue from federal income taxes finance (pay for)?
- What is the difference between gross pay and net pay?
- In 2008, what was the earning limit for Social Secuiry taxes? What was the maximum Social Security tax?
- What does the federal income tax withholding depend on?
- Complete the "quick check" on pages 7 and 8.
Part 2 - Exemptions
http://www.irs.gov/app/understandingTaxes/hows/tax_tutorials/mod06/tt_mod06_01.jsp
- What are the two types of exemptions?
- What do exemptions do?
- What was the exemption amount for 2008?
- Who can personal exemptions be claimed for?
- Complete the "quick check" on page 3.
- How many exemptions are allowed for each person claimed as a dependent?
- Explain how the Lyons are able to claim 5 exemptions. Use the dependency tests in your answer.
- Complete the "quick check" on page 6.
Part 3 - The Standard Deduction
http://www.irs.gov/app/understandingTaxes/hows/tax_tutorials/mod07/tt_mod07_01.jsp
- What is the standard deduction? What does it depend on?
- Complete the "quick check" on page 6.
Part 4 - Electronic Tax Return Preparation and Transmission
- What does tax transmission mean?
- What are the benefits of electronic preparation?
- What are the different ways to send your tax return to the taxing authority?
- What are the benefits of electronic transmission?
- What is an ERO? Provide 3 examples.
- Complete the "quick check" on page 8
Par 5 - Simulation: Completing Form W-4
Go to the following link and do the simulation.
http://www.irs.gov/app/understandingTaxes/hows/mod01/sim_mod01_01.jsp
- Who asks you to complete the W-4 form?
- Describe the relationship between the number of allowances claimed on Form W-4 and the amount of tax withheld.
Part 6 - Simulation: Using Your W-2 and Form 1099-INT to File Your 1040EZ
Go to the following link and do the simulation.
http://www.irs.gov/app/understandingTaxes/hows/mod03/sim_mod03_01.jsp
- What forms do you need to complete your 1040EZ?
- Why are you using the form 1040EZ?
- What do you do when you are done filling out the form?
- What are the 2 ways to get your tax refund?
Part 7 - Identifying Dependents as a Single Taxpayer
http://www.irs.gov/app/understandingTaxes/hows/mod04/sim_mod04a_01.jsp
- Can you claim David as a dependent on your tax return?
Want to learn more? Check out these tax tutorials: http://www.irs.gov/app/understandingTaxes/student/tax_tutorials.jsp