Lesson 3 Teens & Taxes

Lesson 3 Teens & Taxes

​Success Criteria

Students will be able to:

• Identify key facts about taxes and the tax cycle

• Explain who qualifies to be claimed as a dependent for tax purposes

• Determine whether or not a person is required to file taxes

2022 (filing in 2023)

You can open this webpage in a new tab.

Copy link

Open in new tab

Kiddie Tax on Unearned Income | H&R Block

You can open this webpage in a new tab.

Copy link

Open in new tab

Self-Employed Individuals Tax Center | Internal Revenue Service

You can open this webpage in a new tab.

Copy link

Open in new tab

Retirement Topics - IRA Contribution Limits | Internal Revenue Service

You can open this webpage in a new tab.

Copy link

Open in new tab

Can I Claim Them As A Dependent?

 

Whether or not you’re a dependent not only has an effect on your tax situation, but also those who could claim you as a dependent. Whether or not you’re a dependent might be more complicated to determine than you think. Review the reference to learn about who qualifies as a dependent. Then, answer the questions.

You can open this webpage in a new tab.

Copy link

Open in new tab

Do I Need to File a Tax Return? 

As a teen, filing a tax return can be a mostly straight-forward process. However, you may be wondering how that process changes if someone claims you as a dependent or if you are a self-employed worker or household employee. Read through this reference to learn more about what to do in these scenarios posted in Google Classroom with todays assignment.

Multiple Choice

All of the following people can be claimed as a dependent for tax purposes EXCEPT…

• A 23 year old college student whose parents pay all of their expenses

• A 17 year old high school student with a part-time job whose parents pay for all of their expenses

• A 20 year old college student with a paid internship who pays for all of their own expenses

• A 25 year old cousin with no job who has lived in your parent/guardian’s house for the last year

Multiple Choice

You are required to file a tax return in all of the following scenarios EXCEPT…

• You made $25,000 working a full-time job

• You made $3,000 from investments in the stock market

• You were self-employed and made $2,500

• You made $9,000 working a part-time job

Multiple Choice

What is the purpose of the self-employment tax (SECA)?

• To tax self-employed individuals a greater amount than regular employees since they’re more likely to make health insurance claims

• To tax self-employed individuals a lesser amount than regular employees since they generally make less money

• To tax self-employed individuals an equivalent amount for Social Security and Medicare since FICA taxes aren’t taken out of their paycheck

• To tax self-employed individuals a flat amount since they don’t pay federal or state

Go to Google Classroom and get the code for lesson 4