Taxing topic vexes teen
Q. I just got my first job. I’m excited because I can use the money. Imagine my surprise when I got my first check and all sorts of deductions were taken out. Why do I need to pay taxes? I’m too young to vote. Doesn’t that equal the “taxation without representation” that started the Revolutionary War. I tried to ask my grampa (I live with my grandparents) and he mumbled something about only billionaires don’t pay taxes. It’s not that I mind paying my fair share, but I don’t understand. Can you explain taxes to me? – 16-year-old
Mary Jo’s Response: I love your questions! I’m proud of you for securing a job. I was 16 when I had my first job – at a store called G.C. Murphy’s Co. I worked in the record department. Those two sentences give you an indication of my age! It was a great first job and it inspired me to go to college. Honestly, I felt as you do now when I saw my first paycheck with its deductions. Let’s talk taxes!
What are taxes? Taxes are required payments of money to the government, which uses the taxes to pay for services and public goods to benefit the community. A worker pays federal, state and local taxes. Payroll taxes include Social Security and Medicare taxes. Social Security taxes provide benefits for retired workers; Medicare taxes provide benefits for citizens over age 65 and young people with disabilities. Social Security and Medicare taxes are referred to as FICA on your pay stub. FICA stands for Federal Insurance Contributions Act, which is the law that authorizes these deductions.
How do taxes work? When a person gets a new job, they complete a form called a W-4. This form requests your personal information (name, address, and Social Security number), your filing status (are you single, married or the head of a household), the number of your dependents, and any additional adjustments. At the beginning of each year, employees receive聽Form W-2 (Wage and Tax Statement)聽from their employer, detailing how much they earned and how much tax was withheld. You will need this form to file a tax return by April 15. For teens with an annual income below the 2025 filing threshold ($13,850 for single filers), filing a tax return may not be required. However, the IRS still recommends doing so to claim any potential refunds due to over-withholding.
A few other terms you should know: Gross pay refers to the total earnings before deductions, and net pay is the take-home amount after all taxes and deductions are subtracted.
Taxation without representation: I love your connection to history! Some people debate teens voting at 16, but it is not yet legal. You can be an active citizen without voting: become involved in your community’s governance – attend a city council meeting, meet the mayor and your representatives, stay informed. And register to vote as soon as you turn 18.
I brought my first check to my father many years ago. My papa explained taxes to me as I just did with you, and, when I complained, he gently asked me if I enjoyed riding on the highway and going to public school. He said community matters a great deal, and taxes help communities thrive. Most people do not enjoy them, however. Chat with your grandpa and I’m sure he’ll have more to say!
Have a question? Send it to Dr. Mary Jo Podgurski’s email podmj@healthyteens.com.