Budgets & Tax Overview Part 2

A budget includes "INCOME" and "EXPENSES"

What is "Income"

Income is money received through work or investments.

What is "Expense"

Expense is money spent on something.

Let's Breakdown Some of These Taxes Again !

The more you practice, step by step and with some time, you will understand the what, when and why's of taxes. This is part of your financial freedom !

FICA =

Federal Insurance Contributions Act 

Social Security Insurance

MCARE =

Medicare

Medical Insurance for the elderly and disabled people.

What would your FICA Tax be on your Gross Pay above ?

(Hint: multiply $2,000 by the FICA tax rate above)

What would your MCARE Tax be on your Gross Pay above ?

(Hint: multiply $2,000 by the MCARE tax rate above)

What was the total amount of (FICA & MCARE) taxes ?

LET'S REVIEW

                 REVIEWING THE BENEFITS OF BUDGETING

So we know a budget is a plan to save, track, and improve your money situation.

 

It also helps you stay on course with your goals by controlling your spending and saving & investing a portion of your income.

REVIEWING THE BENEFITS OF TAXES

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So we know the IRS collects taxes but what do they do with the money?

Well, they use the money to fix broken bridges, cracked roads, schools, parks and many more reasons.

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Let's do a quick review below:

The below taxes are paid to help our Senior Citizens (older people),

of which we will all be one day.