COMMON TAXES

By Kathleen Xie

Let’s talk about taxes. Whether it’s after you get your first job or while you’re shopping, you will inevitably encounter taxes. In October 2022, we taught an introduction class about taxes – a highly requested topic – to the Fort Hamilton High School Title 1 student group in New York. During the session, we explained what taxes were and how to file them, and we went through some softwares that can help you file them easily. Here are some key takeaways about from our presentation:

What is tax? Tax is a way that the government collects money from the citizens to fund public services. Some common taxes include…

Sales tax - a tax customers pay when they purchase an item, good, or service

Income tax - a tax paid yearly and should be filed by April 15th every year

Payroll tax - a tax taken out of your paycheck by your employer

Social security tax - the tax for both employers and employees to fund the Social Security program

Why file taxes at an early age, even when you don’t have to pay taxes?

By doing so, you will start early in your social security record, which can be beneficial later on when you retire. Social security is tied to your payroll history.

How do you file taxes? For federal and state taxes, you fill out forms like the W-2, 1099-INT, and 1040. They show information about your income you’ve earned from your employer and other information for the year.

What tools can you use to file taxes? Free tax software such as TurpoTax can make filing taxes an easier process.

*Contact us if you’d like to request us to teach a certain group of students about taxes or other financial literacy topics. 

info@flytotheworld.org

#tax #financialliteracy #financialeducation