Unit 3 of TEKS Financial Mathematics gives students a practical understanding of how the U.S. tax system works. They learn how to read common tax forms, calculate taxable income, apply progressive tax brackets, and determine whether a filer owes taxes or is due a refund. This unit takes the mystery out of tax filing by breaking the process into simple, step-by-step calculations.
Students explore filing statuses, deductions, credits, and the difference between marginal and effective tax rates. They also learn how side income, capital gains, and self-employment affect taxes, helping them make informed financial decisions now and in the future.
What Students Do in Unit 3:
- Identify filing statuses, tax forms (W-2, 1099, 1040), and who must file
- Compare standard vs. itemized deductions
- Calculate taxable income and tax liability using progressive brackets
- Determine refunds or amounts owed based on withholding
- Learn about tax credits, capital gains, and other types of taxes
- Analyze how side income impacts overall tax responsibility
Unit 3 empowers students to understand their tax obligations with confidence and prepares them for real-world financial independence.