MA.912.FL.2.6

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Given a real-world scenario, complete and calculate federal income tax using spreadsheets and other technology.

Clarifications

Clarification 1: Instruction includes understanding the difference between standardized deductions and itemized deductions. 

Clarification 2: Instruction includes the connection to piecewise linear functions with slopes relating to the marginal tax rates.

General Information
Subject Area: Mathematics (B.E.S.T.)
Grade: 912
Strand: Financial Literacy
Standard: Develop an understanding of basic accounting and economic principles.
Date Adopted or Revised: 08/20
Status: State Board Approved

Benchmark Instructional Guide

Connecting Benchmarks/Horizontal Alignment

 

Terms from the K-12 Glossary

  • Linear function 
  • Piecewise function 
  • Slope
 

Vertical Alignment

Previous Benchmarks

Next Benchmarks

 

Purpose and Instructional Strategies

In grade 7, students learned how use percentages and ratios to solve multi-step real world percent problems that included tax. In Math for Data and Financial Literacy, instruction extends this to calculate federal income tax, understand standard deductions, itemized deductions and marginal tax rates. 
  • Instruction includes the connection to piecewise functions as a way to represent tax brackets. 
  • Federal Income Tax is the tax that is collected by the Internal Revenue Service (IRS). 
    • Tax Rate is the rate at which a business or a person is taxed as a percentage. 
    • Marginal Tax Rates are taxes based on income brackets and is the tax rate paid on the next dollar of income. The marginal tax rate increases as the income increases and are separated into seven tax brackets in the United States. 
    • Instruction should include an overview of tax documents including the basic forms for filing: W-2, 1099, 1040EZ, 1040, and Schedules A and B. Additionally, students should have opportunity for learning how to access and use the standard deduction chart and the itemized Schedule A for Form 1040. 
    • Standard deduction is the deduction that is set by the government based on the filing status. 
    • Itemized deductions are amounts that a person pays for state and local income, real estate or sales taxes, personal property taxes, mortgage interest, and some medical expenses. Itemized deductions also include contributions to charity.
 

Common Misconceptions or Errors

  • Students may not have experience with income tax forms thus instruction should include the format understanding. 
  • Students may have misconceptions on how to calculate income and where to determine the income for tax purposes. 
  • Students may make errors in calculations when working with tax spreadsheets and forms.
  • Students may make errors when working with the piecewise functions and the notation for writing them. This may include the correct decimal from the percentage being used. Additionally, students may need instruction related to determining the slope between two points and finding the value of b in y = mx + b when working with piecewise functions.
 

Instructional Tasks

Instructional Task 1 (MTR.3.1) 
  • Use the following information for Timothy and Lynn Crosby to compute their tax form 1040, including a Schedule A and Schedule B, and determine if they will have a refund or will owe taxes.
  • The Crosby’s have 2 children and live in Florida with no state tax. Timothy works at a furniture design company with wages of $55,875 and his federal income tax withholdings were $8,755. Lynn works as a part-time paralegal. Her wages are $39,675 and her federal income tax withholdings are $7,458. Their bank interest received is $658 and they received $324 in stock dividends. Itemized deductions include: 
    • Medical/Dental $2,300 
    • Interest $4,250 
    • Contributions to charity $200 
    • Educational expense deductions $300 

Instructional Task 2 
  • Create a piecewise function for the tax, y, for a taxpayer who is filing single using the schedule chart.
 

Instructional Items

Instructional Item 1 

       

  • Using the sample tax schedule, what is the marginal tax rate for a taxpayer that has a taxable income of $52,000? 

Instructional Item 2 
  • Alexander completed his tax return and has calculated that his tax is $12,567. His employer withheld $10,458. Determine if Alexander will receive a refund or owe money back to IRS, and how much for each scenario?

*The strategies, tasks and items included in the B1G-M are examples and should not be considered comprehensive.

Related Courses

This benchmark is part of these courses.
1200388: Mathematics for Data and Financial Literacy Honors (Specifically in versions: 2022 and beyond (current))
1200384: Mathematics for Data and Financial Literacy (Specifically in versions: 2022 and beyond (current))
7912120: Access Mathematics for Data and Financial Literacy (Specifically in versions: 2022 - 2023, 2023 and beyond (current))

Related Access Points

Alternate version of this benchmark for students with significant cognitive disabilities.
MA.912.FL.2.AP.6: Given a paycheck, identify the taxes taken out.

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