Lesson Plan
Taxes Quick-Start Plan
Students will decide if a simple scenario requires filing, list two required documents (e.g., W‑2, 1099), and complete three fields on a simplified 1040 practice sheet.
Understanding basic tax filing is an essential life skill that empowers students to manage their finances responsibly and avoid common pitfalls.
Audience
12th Grade
Time
30 minutes
Approach
Interactive scenarios, direct instruction, and hands-on practice.
Materials
From Paycheck to 1040 Slides, Scenario Sort: File or Not Activity, 1040 Mini Practice Sheet Worksheet, and Exit Ticket: Two Docs I Need Cool-Down
Prep
Prepare Materials
10 minutes
- Review the Taxes Quick-Start Plan and all generated materials to ensure familiarity with content and flow.
- Print copies of the Scenario Sort: File or Not Activity (one per small group).
- Print copies of the 1040 Mini Practice Sheet Worksheet (one per student).
- Print copies of the Exit Ticket: Two Docs I Need Cool-Down (one per student).
- Ensure projector and computer are set up for From Paycheck to 1040 Slides.
Step 1
Warm-Up & Introduction: Why Taxes?
5 minutes
- Begin by asking students what they know or think about taxes. Guide a brief discussion to gauge prior knowledge and address misconceptions.
- Introduce the lesson objective and agenda using the From Paycheck to 1040 Slides (Slides 1-2).
- Explain the relevance of understanding taxes for their future financial independence.
Step 2
Demystify Filing Thresholds & Documents
10 minutes
- Use From Paycheck to 1040 Slides (Slides 3-6) to explain key concepts: W-2 vs. 1099, filing thresholds, dependents, and withholding.
- Provide clear exemplars and simple explanations for each term.
- Engage students with quick checks for understanding (e.g.,
use Lenny to create lessons.
No credit card needed
Slide Deck
Taxes Lite: File Without Fear
Navigating Your First Tax Season
Greet students and start with a quick, engaging question about money or jobs. Transition into the topic of taxes by highlighting their real-world relevance. Explain that many people find taxes daunting, but we'll break it down.
Our Game Plan
By the end of this lesson, you will be able to:
- Decide if a simple scenario requires filing taxes.
- List two key documents needed for tax filing (like a W-2 or 1099).
- Complete three important fields on a simplified 1040 practice sheet.
Introduce the learning objectives for today's lesson. Go over the agenda quickly so students know what to expect. Emphasize that these are practical skills for their future.
Meet Your W-2!
What is it?
- A form from your employer.
- Shows how much you earned and how much tax was already taken out (withheld).
- You get one if you are an employee.
Start by defining what a W-2 is and who receives it (employees). Explain that it summarizes earnings and taxes withheld. Show a simple visual example if possible or describe key sections.
And the 1099...
What is it?
- A form for non-employee income.
- Shows income from freelancing, gig work, or investments.
- You get one if you're an independent contractor or have other specific income.
Now, introduce the 1099. Contrast it with the W-2 by explaining it's for independent contractors or self-employed individuals. Mention different types of 1099s (e.g., 1099-NEC, 1099-INT).
W-2 vs. 1099: Why it Matters
Key Difference
- W-2: For wages earned as an employee (taxes often withheld).
- 1099: For income as an independent contractor, investments, or other sources (taxes usually not withheld).
Both report income you earned!
Explain why knowing the difference is crucial for filing. Emphasize that income from both types of forms is taxable. Briefly mention the importance of keeping these documents safe.
Do I Even Need to File?
Filing Thresholds
- There's a certain amount of income you can earn before you have to file a tax return.
- This amount changes each year and depends on factors like your age and filing status.
- Even if you don't have to, you might want to (especially if you're getting a refund!).
Introduce the concept of filing thresholds. Explain that not everyone has to file, but many do, even if they don't owe taxes (e.g., to get a refund). Simplify the idea of gross income vs. taxable income.
Dependents & Withholding
Dependent
- Someone who relies on another person for financial support (like a child or sometimes a student).
- If someone claims you as a dependent, it affects their taxes and your filing requirements.
Withholding
- Money your employer takes out of your paycheck for taxes throughout the year.
- This is like making small payments towards your total tax bill.
Briefly define 'dependents' and 'withholding.' Explain how being claimed as a dependent can affect filing and how withholding impacts whether you get a refund or owe more.
The Mighty Form 1040 (Simplified!)
What is it?
- The main federal income tax form.
- Where you report your income, deductions, and calculate if you owe more taxes or get a refund.
- We'll look at a simplified version today to get comfortable.
Introduce the 1040 as the main tax form. Explain that we'll be looking at a simplified version. Highlight its purpose: reporting income, calculating tax, and getting refunds/owing money.
Activity: File or Not?
Scenario Sort: File or Not
- Work in small groups.
- Read each scenario carefully.
- Decide if the person in the scenario must file a tax return (or should file to get a refund).
- Be ready to explain your reasoning!
Explain the upcoming activity. Divide students into small groups and distribute the 'Scenario Sort: File or Not' activity. Emphasize discussion and critical thinking.
Hands-On: The 1040 Mini Practice
Let's Practice!
- You'll get a simplified 1040 sheet.
- We'll work together to fill in three important fields using a basic example.
- This is just practice to get familiar with the form, not actual tax prep!
Distribute the 1040 Mini Practice Sheet. Guide students through completing the three specified fields using a simple example. Walk them through step-by-step.
Wrap-Up & Exit Ticket
Key Takeaways
- You now know the difference between a W-2 and a 1099.
- You understand that not everyone has to file, but many should!
- You've seen what a 1040 looks like and how to fill out basic parts.
Exit Ticket: Two Docs I Need
- Before you leave, list two documents someone might need to file their taxes.
Conclude the lesson by reviewing the key takeaways. Distribute the exit ticket and ask students to complete it individually. Collect them as a quick assessment.
Worksheet
1040 Mini Practice Sheet
Name: _________________________
Date: _________________________
Instructions:
Read the scenario below and use the information to fill in the highlighted sections on your simplified 1040 form. This is just for practice to help you understand the basics of tax forms!
Scenario:
Maria, a 12th-grade student, worked part-time at "The Daily Grind" coffee shop and earned $2,500. Her employer withheld $100 in federal income tax. She also earned $50 from babysitting for neighbors. Maria is claimed as a dependent by her parents.
Simplified Form 1040 - Practice Edition
Part I: Income
-
Wages, salaries, tips, etc. (from W-2):
$ 2,500.00 -
Other income (e.g., from a 1099 or self-employment):
$ 50.00 -
Total Gross Income: Add lines 1 and 2.
$ 2,550.00
Part II: Withholding & Tax Calculation
-
Federal income tax withheld (from W-2):
$ 100.00 -
Total Payments/Withholding: (Enter amount from Line 4)
$ 100.00 -
Your Estimated Tax: (For this practice, let's assume a simplified tax of $0 due to low income/standard deduction as a dependent, but a refund is possible)
$ 0.00 -
Refund Due? If Line 5 is more than Line 6, you get a refund! (Subtract Line 6 from Line 5)
$ 100.00
Reflection Question:
Based on Maria's total gross income, does she have to file a tax return? Why or why not? (Hint: Consider if she had any tax withheld and if she might get a refund.)
Activity
Scenario Sort: File or Not?
Group Members: _________________________, _________________________, _________________________
Instructions:
Your group will receive several cards, each with a different tax scenario. Read each scenario carefully. Discuss within your group whether the person in the scenario:
- MUST FILE: They are legally required to file a tax return.
- SHOULD FILE (to get a refund): They aren't legally required, but they paid taxes and could get money back.
- DOES NOT NEED TO FILE: They don't meet the filing threshold and didn't have taxes withheld.
Sort the cards into these three categories. Be prepared to explain your reasoning for each!
Scenarios (Cut these out into individual cards for students):
Scenario 1: The Part-Time Barista
Sarah, age 17, worked at a coffee shop over the summer and earned $3,000. Her employer withheld $50 in federal income tax from her paychecks. She lives at home and her parents claim her as a dependent.
Scenario 2: The Freelance Artist
David, age 19, is a freelance artist. He earned $8,000 from selling his artwork online. No taxes were withheld from his earnings. He is not claimed as a dependent by anyone.
Scenario 3: The Summer Camp Counselor
Emily, age 16, worked as a camp counselor and earned $1,500. No federal income tax was withheld from her paychecks. Her parents claim her as a dependent.
Scenario 4: The Investment Earner
Michael, age 20, is a college student. He didn't work a job, but he earned $1,200 in interest income from a savings account. He is claimed as a dependent by his parents.
Scenario 5: The Full-Time Employee
Jessica, age 22, works full-time and earned $35,000. Her employer withheld a significant amount of federal income tax from her paychecks. She is not claimed as a dependent.
Scenario 6: The Low-Income Student
Daniel, age 18, worked a few odd jobs and earned a total of $700. No taxes were withheld. He is claimed as a dependent by his guardian.
Cool Down
Exit Ticket: Two Docs I Need
Name: _________________________
Instructions:
Before you leave, please list two different types of documents someone might need when preparing to file their taxes. Briefly explain what each document is for.
-
Document 1:
____________________________________________________________________
What it's for:
____________________________________________________________________
____________________________________________________________________ -
Document 2:
____________________________________________________________________
What it's for:
____________________________________________________________________
____________________________________________________________________