Tax effects on budgets is the second case in our financial literacy personal budget series. The nine-part case aims to help students understand how taxes influence personal financial decisions, employment choices, and retirement planning. Each part is designed to deepen students’ understanding of tax implications while strengthening their Excel skills through scenario analysis and problem-solving.

• Part 1: Employment taxes
• Part 2: State income tax expense
• Part 3: Federal income tax using tax tables
• Part 4: Federal income tax using the tax rate schedule
• Part 5: Marginal and effective tax rates
• Part 6: Tax planning for future federal income tax
• Part 7: Tax optimized retirement savings
• Part 8: Health savings accounts (HSAs)
• Part 9: Health savings accounts early withdrawal scenarios

Each part includes practical exercises that encourage critical thinking and real-world application. Unlike Case 1, this case assumes foundational Excel knowledge and emphasizes independent learning and creativity.

This case stands alone from Case 1 and each independent part of Case 2 offers flexibility for faculty to choose the pieces that are applicable for their classroom. Instructional solution videos for Excel are also included to support concurrent learning.

Universities may also considering taking portions of these materials and use them in high school settings.

Suitable courses: Personal finance, Tax

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