ADDIE Model for Instruction for Income Taxation

Lesson Title: OPTIONAL STANDARD DEDUCTION AND 8% TAX RATE

I. Analysis

A. Learning Competency

In closing, Students will learn how to compute income tax by understanding

optional standard deductions, as well as the 8% tax rate. They will be able to
calculate taxable income using various methods, consider factors like filing
status, exemptions, and deductions, and analyze the impact of the 8% tax rate
on different income levels. This knowledge will help them make informed
decisions about tax planning and compliance.

B. Learner's Background

The learners are 2nd year Financial Management students of Naga College
Foundation, Inc. In a standard-sized classroom, which is designed to
accommodate a typical number of students comfortably, there are "(no. of
students)" individuals. Students have prior knowledge of financial principles,
accounting standards, and taxation concepts to income tax computation. This
prior knowledge equips them to grasp the complexities of income tax
calculations, including the differentiation between optional and standard
deductions and the application of the 8% tax rate.

C. Learning Environment

Setting the stage for active engagement, interaction, and effective

communication. Ensure the physical space is conducive to learning with
comfortable seating arrangements that promote visibility and collaboration. Use
visual aids and multimedia presentations to enhance understanding. Incorporate
hands-on activities, demonstrations, and discussions to engage students.
Encourage curiosity, critical thinking, and real-world application. Use technology
tools, assessments, and feedback mechanisms. Maintain a supportive and
enthusiastic demeanor to maximize student participation and learning outcomes.
II. Design

A. Learning Objectives

At the end of the 60-minute classroom instruction, with the use of

learning modules, 85% of the students are expected to:

1. Gain a comprehensive understanding on how to compute the income

taxation using the optional standard deduction and the 8% tax rate.
2. Identify taxpayers who may avail of deductions.
3. Explain the difference between the optional standard deduction and the
8% tax rate.
4. Identify situations when it would be beneficial to use the optional
standard deduction versus the 8% tax rate.

B. Procedures

1. Introduction (10 minutes):

● The lesson will begin by asking students if they know what
taxes are and why we pay them.
● Explain briefly the concept of tax brackets and how they
work. You can use a simple example to illustrate tax
brackets, such as a progressive tax system where tax rates
increase as taxable income increases.
● Introduce the concept of tax deductions and how they can
reduce your taxable income.

2. Activity (20 minutes):

● Guess the gibberish
● It is an individual activity where students will be given a set
of random words, which when spoken out loud, is supposed
to sound like a sensible phrase. These phrases often don’t
make any sense at all. That’s why you must pay close
attention to them and try to guess from these words what
the phrase is. They’re usually far from the actual answer
which makes the game really challenging.
 3. Instruction (20 minutes):
● Through a powerpoint presentation, we will provide a clear
explanation of the optional standard deduction and the 8%
tax rate.
● It will include visuals such as charts or graphs to illustrate
the tax brackets and how the standard deduction and 8%
tax rate affect taxable income.
● Emphasize the key differences between the two options.

4. Assessment (10 minutes):

● Distribute a short quiz to assess students' understanding of
the lesson.
● The quiz can include computation and identification.

III. Development

A. Vocabulary

● Optional standard deduction

● Tax rate
● Taxable Income
● Deductions
● Exemptions
● Tax Brackets
● Progressive Tax System
● Optional Deduction
● Standard Deduction

B. Materials needed for the lesson

● Whiteboard or projector
● Markers or pens
● Short quiz or worksheet to assess student learning
● Basic calculators
 C. Suggested reading:
● “Understanding Optional Standard Deductions" by the Internal Revenue
Service
● “Introduction to Tax Rates and Brackets" by Investopedia

IV. Implementation

A. Procedures

1. Introduce the concept of optional standard deduction and explain its

relevance in tax calculations.
2. Discuss the concept of tax rate and its impact on individuals' tax liabilities.
3. Present examples to illustrate the application of the optional standard
deduction and the calculation of tax using an 8 percent tax rate.
4. Engage the learners in hands-on activities to practice calculating taxes
using the optional standard deduction and the given tax rate.
5. Provide real-life scenarios or case studies for the learners to analyze and
apply the concepts learned.
6. Encourage group discussions and peer learning to reinforce understanding
of the optional standard deduction and tax rates.
7. Conclude the session with a recap of the key learning points and their
practical implications.

B. Discussion Questions

● Can someone explain or does anybody have an idea what are tax brackets
or the graduated tax table and how they work?
● What are tax deductions and how do they benefit taxpayers?
● Can you think of any other deductions besides the standard deduction and
the 8% tax rate?
● Who can claim OSD?
● In your own words, what is optional standard deduction?
● What is the 8% tax rate?
● How are these two tax benefits calculated?
V. Evaluation

A. Formative Assessment

Activity. Guess the Gibberish

Instructions: It is an individual activity where students will be given a
set of random words, to form a phrase that sounds sensible, but is often
unrelated, creating a challenging guessing game.

Quiz. Compute the taxable income.

B. Summative Assessment
Exams

C. Assignment

For your assignment, study in advance our next topic. Chapter 14

Expenses, Interest and Taxes.

Prepared by:
Bawasanta, Hazel
Camarote, Alyssa
Isulan, Aljon
Santiago, Vincent