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1.06BM How to File Your Taxes & Types of Taxes

Last updated 2 months ago
32 questions
Note from the author:
Warm-Up

PROMPT:

Review the chart and use the space below to answer the prompt.

2

25% of people reported filing their federal taxes for free. Do you think this number should be higher? Lower? Or does it seem about right? Explain your answer.

Learn It

REFERENCE: Tax Preparation Checklist for Teens

What do you need to file your taxes? Review this handy list of items you will need to fill out the 1040 form. Check off the items you’re confident you will have ready. Take note of any items you’re unsure or have any questions about.
3

After reviewing this checklist, how do you plan on keeping your important tax documents organized at home?

3

What can you do if you are missing any documents?

3

Is there anything on this list you are unsure of or have any questions about?

VIDEO: Ways to File Your Taxes

Once you’ve gathered everything you’ll need, you have a few different options to choose from in how to prepare and submit your taxes. Watch this video to learn more about the three most commonly used options. Then, answer the questions.
Tip: The video lists the pros of all three options but only lists cons for paper filing. You will have to brainstorm cons for the other two options on your own.
6
What are the pros and cons of each method for preparing your taxes?

Old-fashioned paper filing:
Pros:_______
Cons:_______

Tax preparation websites:
Pros:_______
Cons:_______

Hiring a tax professional:
Pros:_______
Cons:_______
2
Which option would you choose to prepare your taxes?_______ Explain why._______

VIDEO: What’s a W-2 Form?

The W-2 form contains some of the most crucial information you’ll need to prepare your taxes. Watch this video to learn why it’s so important. Then, answer the questions.
1

All of the following people should receive W-2 forms EXCEPT…
  1. Edgar, who works 10 hours/week cleaning pools for $15/hour at WeCleanPools
  2. Melinda, who works 40 hours/week at a local ice cream shop during the summer
  3. Marcus, who is on salary as a sales representative at a shoe store, working full-time
  4. Serena, who is a freelance wedding photographer

1

What are two important items detailed in your W-2 form? (select two correct answers)
  1. Wages, tips, and other compensation
  2. Number of dependents you will claim
  3. Federal and state taxes withheld from your earnings
  4. Additional money you want withheld from your paycheck

1

When should you receive your W-2 form from your employer?
  1. Attached to every pay stub
  2. By January 1
  3. By January 31
  4. By April 15

ACTIVITY: FINE PRINT: W-2 Form

Now that you know why it’s so important, let’s take a look at a sample W-2 form in more detail so you can be more confident when the time comes to prepare your own taxes. Follow the directions on the worksheet to complete this activity.

1

What do you know about Lily’s employment?
  1. Lily earned minimum wage plus tips
  2. Lily worked at Scoops Ice Cream in 2024
  3. Lily worked during every month of 2024
  4. Lily’s annual net pay (take-home pay) was $14,450 after taxes

1

Lily uses a tax filing software that asks for her Employer’s Identification Number (EIN). What is it?
  1. 123-45-6789
  2. 987654321
  3. 00122234001
  4. 1545-0008

1

What tax information is NOT included on this W-2?
  1. Gross wages earned
  2. Federal income taxes she’s already paid
  3. State income taxes she’s already paid
  4. Income earned from her investments

1

What were Lily’s gross wages from this employer for this period?
  1. $895.90
  2. $1,080.50
  3. $14,450
  4. $16,635.92

1

What was the largest withholding on Lily’s W-2?
  1. Medicare tax
  2. Federal income tax
  3. State income tax
  4. Social security tax

1

Based on this W-2, which of the following statements is TRUE?
  1. Lily is contributing to a 401(k) retirement through her employer
  2. Lily works in the state of Indiana, which has a state income tax
  3. Lily’s taxable wages are much larger at the federal level than at the state or local level
  4. Lily earned more than $14,600 (which is the standard deduction amount)

1

While filing, Lily finds out that her total federal income tax due was $190. Based on her federal income tax withheld, how much of a tax refund can she expect?
  1. $190.00
  2. $890.50
  3. $1,080.50
  4. $13,369.50

1

Lily paid ______ in Social Security tax, which is _______ of her total wages.
  1. $209.52; 1.45%
  2. $209.52; 6.2%
  3. $895.90; 6.2%
  4. $895.90; 1.45%

1

What was the total amount deducted from Lily’s pay for Federal, State, and Local income tax?
  1. $1,080.50
  2. $1,755.32
  3. $2,185.92
  4. $2,886.75

1

Based on her W-2, what state income tax rate did Lily pay?
  1. 234.09 / 14,450.00 = 1.62%
  2. 440.73 / 14,450.00 = 3.05%
  3. 895.90 / 14,450.00 = 6.20%
  4. 440.73 / 1080.50 = 40.79%

1

What is the purpose of a W-2 form?

ARTICLE: State Income Tax Rates: What They Are and How They Work
In the previous resources you’ve learned that in addition to federal income taxes, states can also withhold income taxes from your earnings. Review the article to learn more about how different states handle income taxes. Then, answer the questions.
3
What is the state income tax rate in the state you live?_______
How many brackets does MD have?_______
Does MD have a progressive or flat tax rate? _______
7

Which states have no income taxes at all? (7)

1

What is the difference between a flat tax rate and progressive tax rate?

Desmos: Exploring State and Local Income Taxes
INFOGRAPHIC: Progressive, Regressive, or Proportional?
One way to categorize taxes is by the impact they have on people with different incomes. Review the infographic to learn the three basic categories, then answer the questions. Note: a proportional tax is sometimes also called a flat tax.
3
In your own words, summarize what progressive_______ , regressive_______ , and proportional_______ mean.
2
Does a proportional tax mean that every person pays the same amount in taxes? _______ Why or why not?_______
1.6MB Desmos 2: Explore Tax Rates by Income Level and Tax Type
INTERACTIVE: International Tax Rates
Now that you’ve learned more about the taxes we pay in the U.S., see how that compares to tax rates internationally. Explore the interactive and answer the questions.
1

Which country has the highest tax rate? What is it?

1

Identify at least one other country with a similar tax rate as the United States.

2
What do you think would be the advantages_______ and disadvantages _______ of living somewhere with low average tax rates?
2
Write one takeaway_______ and one question _______ you have after exploring the interactive.
Exit Ticket
1

If you’re looking to pay as little as possible to file your taxes BUT you’re worried about making mistakes, which tax preparation method would be your best option?

1

All of the following are found on a W-2 form EXCEPT…
  1. Wages, tips, and other compensation
  2. Federal and state taxes withheld
  3. Sales taxes paid
  4. FICA taxes withheld

1

Which of the following is the term for a tax rate that increases at higher levels of income?
  1. FICA tax
  2. Sales tax
  3. Flat tax
  4. Progressive tax