Tax Advice for Youth

If you are just starting out and have not paid taxes before, you may not understand the way the process works. Understanding what taxes are withheld and why is a great way to help you make the best decision on the amount of withholdings you should claim in order to take home more money every week, or get a larger return at the end of the year.

• Understand the importance of the information that you enter on the W4 form given to you by the employer. This form will help to determine the amount of withholdings that are taken from each paycheck. Complete this form carefully; if you are unsure of what you should enter, consult with a parent or trusted family member to help you fill out this form before turning it in.

• Be aware that is mandatory to pay a variety of different taxes once you become employed. Federal income tax is withheld from every person who receives a paycheck within the United States. This money is used to fund various government programs. Medicare and Social Security taxes are also withheld in order to allow you to become eligible for these programs later in life when you may need to use them.

• Keep in mind that the money that is paid into Federal income taxes will be returned to you at the end of the year if you are eligible. Determining how you want to file the deduction amount on the W4 form. The more deductions you claim, the more money you will receive each pay check. However, the more money that is taken out of each check towards Federal taxes, the larger the tax return check will be at the end of the year when you file taxes.