“I Don’t Think I’ll Ever Get A Job Again”: High Schooler’s Realization About Taxes Goes Viral (2024)

FAQs

Why don t they teach you about taxes in high school? ›

Others think that it is impractical to teach about this topic since filing income taxes can be different for everyone. 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.

The Federal tax system relies primarily on payroll and income taxes. Boosts in payroll taxes bring forth unemployment directly and immediately, provided other cost reduction does not mitigate the tax boosts. Income taxes have similar results whenever they consume savings and prevent capital formation.

If you didn't account for each job across your W-4s, you may not have withheld enough, so your tax refund could be less than expected in 2024. Or, if you had a salary increase in 2023 but didn't update your tax withholding accordingly, you could receive a smaller refund.

Filing taxes with multiple jobs isn't generally all that different compared to filing with a single job. You'll still only need to file one return with the Internal Revenue Service. That said, keep in mind that working an additional job may push you into a higher tax bracket, and be aware of these possible wrinkles.

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.

As they grow, kids will eventually earn money through allowances, part-time jobs, or even entrepreneurial ventures. Understanding how taxes work can help them better manage their finances by accounting for tax obligations when budgeting their expenses.

Tax cuts for the wealthy, a common economic development tool in recessionary times, do not create jobs as conservative politics contend. But tax cuts for everyone else leads to higher employment and production in the economy, according to research by Chicago Booth's Owen Zidar.

This is the direct, negative effect on growth that is present in most taxes. Taxes also take money out of the economy, reducing private sector demand and lowering GDP. For example, as income taxes reduce people's take-home pay, they have less to spend.

By enacting a minimum tax on big profitable corporations, taxing stock buybacks, and tightening loopholes wealthy people use to reduce their taxes, the Inflation Reduction Act moved to tax excess wealth. Leading economists agree these changes will curb inflationary pressures on prices.

This may be the case if you made over $20,000 from a side hustle in 2023, you earn self-employment income (such as through a freelance gig), or you entered a new tax bracket. You can make filing taxes in 2024 less stressful with a clear plan and proactive strategies.

Why are more people owing taxes? ›

The most common reason why taxpayers end up owing money to the IRS is because they did not have enough money taken out of their paychecks throughout the year, according to tax experts. When employees first start a job, they fill out a W-4 form, which determines how much money is withheld from their paychecks for taxes.

If a taxpayer refund isn't what is expected, it may be due to changes made by the IRS. These changes could include corrections to the Child Tax Credit or EITC amounts or an offset from all or part of the refund amount to pay past-due tax or debts. More information about reduced refunds is available on IRS.gov.

Here are a few more of the many reasons that can cause lower tax refunds (or higher tax bills): Making more money (or a spouse making more money, if filing jointly) can reduce the amount of the EITC you qualify for and might even disqualify you from claiming it altogether.

With the prevalence of zero-hour contracts, it's very common for people to have more than one job, either to make up for a shortage of hours or because they need a little extra to make ends meet. It's perfectly fine and common for people to be both self-employed and employed in these types of situations.

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.

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.

If you're wondering if you should bother filing because you only work over the summer or a few hours part-time during the school year, the answer is YES! You aren't required to file if your income is under $13,850 for tax year 2023, but you may be able to take advantage of those credits and deductions we mentioned.

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.