Talk to your teen kid about taxes before he receives his first check


The worst thing about getting your first job is receiving your first check. Instead of being the triumphant moment it's meant to be, seeing the digits that declare the grand total can sock you a blow. How can the number be so low? You did the math,multiplying the number of hours you worked by your hourly rate. However, the number on the check is woefully small in comparison. "We wuz robbed!" you declare.

Yes, you were robbed. Your pocket was picked by the greatest professional in the history of pickpocketing - Uncle Sam. Not only did he take a little for himself, but so did your friendly state government, and if you live in a big city like New York, the Big Apple took a bite, too. But it doesn't stop there. You might also see deductions for Social Security, FICA, medical insurance, and so on. Yes, it's terrible to see that not every dollar you've earned goes directly into your pocket. The first time your son or daughter experiences this rite of passage is the perfect time to have a little talk about taxes.

Everybody needs to know about taxes, because you are going to pay more in taxes than you will for anything else in your life. You will never pay as much for your home, your clothing, food, cars, or any other item in your budget. The fact is that it costs a lot of money to run a government, whether or not you agree with the way the government spends it. The following is a friendly introduction to the tax system that will help you answer questions your kids might have. The funny thing about taxes (if anything about taxes can be considered funny) is that the whole system is supposed to be considered "voluntary." That's right. People are supposed to "volunteer" to pay their taxes! However, the way it works is that if you don't "volunteer" to pay your taxes, the government will "volunteer" you for a nice spell in jail!

The federal tax system is so complex that people who go to law school generally study that subject alone for an entire year - and they still barely scratch the surface. Attorneys who wish to practice tax law actually need to go back to school an additional year for an L.L.M. degree. The very complexity of the tax code guarantees full employment for attorneys, accountants, tax specialists, and, of course, the Internal Revenue Service. Multitudes of people make barrels of money simply because the tax code is so complicated.

Having said that, I think you'll understand when I tell you that this article is not the place for a long legal dissertation. However, the crux of the tax matter can be summed up: you owe 'em, and the government collects 'em.

Here's something important to remember: tax avoidance is good, while tax evasion is bad. So what's the difference? Tax avoidance occurs when you become familiar with the parts of the tax code that apply to your situation, such as child-care credits, education credits, and IRAs (Individual Retirement Accounts), that allow you to protect, or "shelter," some income from the tax man.When you take advantage of these special programs, you are not doing anything illegal. You are legally avoiding taxes that you would otherwise owe. Much of the tax code is based on policy decisions, which means that the government has certain goals or desires that it wishes to see accomplished. In order to reach these goals, the government gives tax breaks to individuals, groups, and businesses so that those desiresmight become reality.

For example, the government wants children to be educated. Educated children have the best chance of becoming responsible adults. The government will actually reduce your tax bill if you spend for the education of your children. It's your job as a parent to find out what tax credits out there will help you save for your children's education.

Legal Disclaimer

Our website is not responsible for the information contained by this article. Articleinput.com is a free articles resource thus practically any visitor can submit an article. However if you notice any copyrighted material, please contact us and we will remove the article(s) in discussion right away.

Note: This article was sent to us by: Leah A. Ermingstone at 06022010

Related Articles

1. We and our children take basic civil rights for granted
Forty years ago, the greatest threat to American blacks came from a society that denied us the basic civil rights that we and our children today take for granted. In my...

2. Explain to your children why it is important to pay all bills on time
Unfortunately, sometimes we just don't have enough money to pay a particular bill. When faced with such a dilemma, many of us simply act as if the situation didn't exis...

3. Talk to your older children about real estate ownership
Dating back to the earliest days of U.S. history, the traditional savings account has always played an important role in our banking and economic systems. Savings and r...

4. Parents must explain brand manipulation to their children
Corporate America has done a remarkable job of marketing to a generation hooked on brand identities. It is our responsibility as parents to make every effort to inform ...

5. Help your kids become more self confident
The one character trait of practically every adolescent and teenager, from the barrio to Beverly Hills, is insecurity. Teens are among the least secure people on earth....

6. Ask your kids too when you want to buy a new dream home
Let's say that your credit is ready and you have your down payment. Now it's time to start looking for a home. You can find houses in the classified section of the news...

7. How to help teens feel good about temselves
It's not easy being a teenager and feeling good about yourself in today's world. Your hormones are going crazy, you've got the pressure to fit in, be popular, the str...