Author
Kayla Boyer
What do you know about W-2 forms? If your answer is “not much,” you’re not alone. Taxes can feel complicated, yet understanding how to read and decipher important employment and tax documents like the W-2 form is critical for anyone employed, now or in the future. Without it, you’ll be unable to file your taxes, and if you don’t file your taxes, well…let’s not go there just yet. Teaching taxes to high school students becomes essential, as students are starting their first job or heading off to college.
For Your Students
Many high school students are eager to land their first job in order to feel independent and self-sufficient. And of course, for the sheer joy of that first paycheck. Considering every employee who earns at least $600 annually will receive a W-2 (also known as wage and tax statement), you likely have students navigating the ins and outs of a W-2 form. While W-2’s can seem overwhelming initially, it’s simply a breakdown of earning over the last year, and the sooner students understand what to expect, the better. Fortunately, the Intuit TurboTax tax simulations for students exist within the newly launched standalone course, Tax Simulation: Understanding Taxes and are dedicated to providing high school students with the skills and knowledge they need to file taxes.
Get Ahead of It
It’s important for you to teach these skills now, before they are stumped by a seemingly random document they receive in the mail come tax season. It’s good to know and teach a few things about W-2 forms before April sets in:
- Your W-2 form shows how much you earned which is known as your compensation, including wages and tips for the year.
- The document also details what you have paid in taxes throughout the year — both federal and state.
- In addition, it explains what was withheld from your pay, such as social security and medicare. It also shows how much you contributed to retirement and how much your employer paid for your health insurance.
- Your W-2 form may arrive by mail or electronically but it must be sent by your employer no later than January 31.
- When you are ready to complete your taxes, you will need this form and all its information. If you don’t file your taxes with the correct information, you can be subjected to fines and in some cases, possiblejail time.
So there you have it. The basics for teaching students about W-2 forms. Your students are going to thank you someday for preparing them appropriately for life outside of the classroom. This is one of those topics where they can’t use the excuse, “when am I ever going to need this in real life?”
EVERFI’s no-cost, online tax lessons for high school provides a practical, real-world taxes activity for students. Students will learn how to file taxes, how different life circ*mstances impact taxes, and gain a better understanding of the steps and requirements for preparing taxes. The course takes less than an hour to complete and is available in both English and Spanish.
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Kayla Boyer is a K-12 Schools Manager based in Dover, New Hampshire. She works closely with EVERFI’s K12 Team to communicate the value of EVERFI products and services to educators, districts, and state education agencies. In her free time, she can be found hiking the white mountains with her labradoodle Molly or chasing around her active 9 year old daughter.
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FAQs
While there are different kinds of taxes and forms an individual will need to fill out when they're an adult, such as the child tax or self-employment income, it's still vital to teach current teenagers, as many of them already work while in school and will need to learn how to do taxes regardless.
Do high schoolers know how to do taxes? ›
Students in U.S. schools learn a variety of topics they may never use. But most of them aren't learning one skill they will almost certainly need later: how to do their taxes. Personal finance education itself is catching on, but is still pretty sparse in American schools.
Why doesn t school teach how to file taxes? ›
The number one reason why schools don't teach students about filing taxes is that too many people require a different process to file income taxes correctly. Since teachers are not tax professionals, covering this topic in schools appears to be too complex.
What does the W-2 form tell you in EverFi module 2? ›
Get Ahead of It
Your W-2 form shows how much you earned which is known as your compensation, including wages and tips for the year. The document also details what you have paid in taxes throughout the year — both federal and state.
Should a high school student file taxes? ›
Being a minor doesn't exempt a teen from paying taxes, but it doesn't necessarily mean they're required to file a separate tax return from their parents. As a general rule, most U.S. citizens and permanent residents need to file a tax return if they make more than a certain amount for the year.
Should financial literacy be taught in high school? ›
Only 27 percent of California high school students attend schools that offer personal finance classes. Ensuring that all young Californians have exposure to financial literacy is a vital step in closing inequality gaps and providing the skills and resources to improve their lives overall.”
Why don't schools teach financial literacy? ›
We don't have enough instructors to teach finance classes (see reason #1) Personal finance isn't part of the ACT or SAT – if it's not tested it's not taught. Education is up to the states, not the feds, and each state has different ideas. There isn't much agreement as to which finance concepts would be taught.
Does my minor child have to file taxes? ›
Generally, a child is responsible for filing his or her own tax return and for paying any tax, penalties, or interest on that return. If a child can't file his or her own return for any reason, such as age, the child's parent, guardian, or other legally responsible person must file it for the child.
Is it hard to learn how to do taxes? ›
Although the United States tax code is a complex one, it's not difficult to do your taxes on your own. That is, as long as you use a quality software solution to guide you through the process. Consider signing up for TurboTax, H&R Block or another leading software solution now to get started.
Why don't they teach cursive anymore? ›
Due to multiple factors including stylistic choices, and technological advancement, the use of cursive has quickly declined since the start of the 21st century. Cursive has traditionally been used as a way of signing one's name, a signature.
You may not qualify for an education tax credit if you earn more than the income limits, if you didn't pay the educational expense you're claiming the credit for, if someone else can claim you as a dependent for tax purposes, or if your tax filing status is married filing separately.
Should students with no income file taxes? ›
For students, the advice is straightforward—if you're a U.S. citizen with a Social Security Number: file taxes every year, even if you're not required to. Doing so will unlock potentially thousands of dollars in tax credits and benefits that could be refunded back to you.
How could you check your W-2 form to be sure it is correct? ›
How to verify your W-2
- Check the spelling of your name. No nicknames here — you'll want to ensure your full name is spelled out.
- Verify that your social security number is listed correctly.
- Double-check that your taxable wages are correct.
The two crucial items detailed in a W-2 form are the total wages, tips, and other compensation received by an employee, and the amount of federal and state taxes that have been withheld from their earnings throughout the year. These details are essential for filing accurate tax returns.
What important information does the W-2 form tell you for filing taxes? ›
A W-2 tax form shows important information about the income you've earned from your employer, amount of taxes withheld from your paycheck, benefits provided and other information for the year. You use this form to file your federal and state taxes.
Why is it important to learn about taxes? ›
Understanding how taxation works can give you a big-picture idea about the ways your money gets taxed and empower you to take greater control of your finances. A financial advisor can also help you align your tax strategies to reach your financial goals.
Is it better to be a student for taxes? ›
But not many realize that students enrolled in higher education are often eligible for a surprising amount of money in tax credits and benefits. This is real money that will lower the taxes they pay and will often get refunded directly to their bank accounts. The funds are crucial to student basic needs security.
Why should more taxes be spent on education? ›
Greater educational attainment increases the likelihood that an individual will be employed and raises the level of his or her wages when employed.
