When you are a kid taxes are not the first thing that comes to your mind when you think of money or a job. Since the beginning of civilization as we know it, people paid taxes. At some point, every kid will have a job, and then they will eventually turn 18 and be responsible for paying taxes. Taxes can be overwhelming, which is why we are going to give a quick rundown so that they can understand. Full disclosure we use an accountant. In Ancient Egypt, the Pharaoh's would tax 1/5 of all the harvests. The tax collected would be used for food, housing, infrastructure, and the defense of the community. The history of taxes in America is complicated. When the American colonies were first founded by the British Empire the British Parliament established extreme taxation. This extreme taxation caused the Revolutionary War. After the Revolutionary War, almost all the taxes came from tariffs. A tariff is a tax on imported goods. It is a straightforward way that the federal government generates revenue. Around the time of the 1950s, they altered the perception of the 16th Amendment, which was passed in 1909. This gave Congress the power to impose taxes on the general public. Most of the taxes we pay today were created in the 1920s and 1930s, such as the estate tax, and Social Security taxes. By the middle of the 20th century, it was expected that all individuals pay taxes on their income. Tax is America's largest source of modern revenue. When you have an employer, your earnings normally come with a pay stub. Your paystub will tell you not just what you make, but what the government takes out of your check. When filing your work information, you will need to include:
Your filing status determines your tax bracket and can affect the deductions and credits you can claim. Most likely you will be choosing single, since you just entering into adulthood. Later you will have other choices available. You can file as single if you've never been married, if you're divorced, or if you're widowed. You're eligible to file as head of household if you weren't married as of Dec. 31. If you paid at least half the cost of maintaining a home, and if you're living supporting another person. Married filing separately or married filing jointly: You're eligible to file as married if you were living together as legal spouses or common law spouses (if recognized by your state) as of Dec. 31. You can file as married even if you were living separately, as long as you aren't legally separated. You can also file as married if your spouse died during the course of the tax year. Married filers have a choice between filing jointly or separately. What tax forms do you need to prepare your tax return? You'll receive lots of different forms in the mail that you may need when preparing your tax return. These forms give you key information. Keep an eye out for the following tax forms: W-2: Whether you worked full or part-time, you'll receive a W2. This form comes from employers and details the amount you earned as well as the amount of income tax withheld from your paychecks. Usually, that is the only form you will receive since you are just starting your adulthood. Later on, you may receive it.
How do you file your tax forms? You have three possible options for how to submit tax forms to the IRS: “Nothing is certain but death and taxes” – Benjamin Franklin
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As a mom of three boys who go to public school I started to notice that some things were not being taught in detail so I decided to create lessons for them. Many of these lessons cover science, history and of information about Paganism. I share crafts for the all different holidays and cultures as ways that they can learn and have fun at the same time.
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