4 ms·

I would add: Tax treatment of different forms of income What are capital gains? What does it mean for them to be realized vs unrealized?

by imgabe 5y ago

xsmasher 5y ago
Tax brackets / progressive taxation in general. The "don't take a raise, you'll actually make less" factoid is way too common.
alisonkisk 5y ago
This is way beyond what a high schooler needs for getting started in life. This is personal finance, for all, not professional accounting for optimizing cash flows. it's far moren important to learn the basics of not getting robbed by predatory businesses, so that they can have a chance at saving some money to turn into capital gains later.
- agubelu 5y ago
  Because I guess outlawing predatory business practices is out of the question
  - WalterBright 5y ago
    I remember back in 2008 people were complaining that they didn't know they had to pay back those mortgages. They also complained they didn't know what their mortgage contract said, because they didn't read it. Every mortgage contract I've bought included a separate page that said simply "I have read and understand this contract" that had to be signed. At what point does some personal responsibility come into play?
- xsmasher 5y ago
  >This is way beyond what a high schooler needs for getting started in life. Yes, but high school is your last chance to get it into everyone's heads.
gzer0 5y ago
Perhaps also: That federal income tax in the US is levied in a progressive fashion; for example, to be taxed at the top income bracket at 37% as a single filer in 2022 meant that any money made OVER the amount over $523,600 is taxed at 37%. Too many people I know think that all of their money is taxed at a flat XX% based solely on the highest income tax bracket they are in. This is simply not the case at all.
- jjav 5y ago
  And in that topic, also that getting a tax refund or having to pay doesn't change anything about the amount of taxes you ended up paying that year. And how getting a big refund isn't a windfall, it's just bad planning.
  - rjbwork 5y ago
    Indeed. Actually the opposite of a windfall. You've given the government an interest free loan for up to a year. I try to do minimal withholding and pay my taxes as late as possible.
- Spooky23 5y ago
  That’s on purpose. The people who quack loudly about taxes prey on the ignorant. The estate tax is the most egregious example.

I would add: Tax treatment of different forms of income What are capital gains? What does it mean for them to be realized vs unrealized?

by imgabe 5y ago

I would add: Tax treatment of different forms of income What are capital gains? What does it mean for them to be realized vs unrealized?

xsmasher 5y ago

Tax brackets / progressive taxation in general. The "don't take a raise, you'll actually make less" factoid is way too common.

alisonkisk 5y ago

This is way beyond what a high schooler needs for getting started in life. This is personal finance, for all, not professional accounting for optimizing cash flows. it's far moren important to learn the basics of not getting robbed by predatory businesses, so that they can have a chance at saving some money to turn into capital gains later.

agubelu 5y ago
Because I guess outlawing predatory business practices is out of the question
- WalterBright 5y ago
  I remember back in 2008 people were complaining that they didn't know they had to pay back those mortgages. They also complained they didn't know what their mortgage contract said, because they didn't read it. Every mortgage contract I've bought included a separate page that said simply "I have read and understand this contract" that had to be signed. At what point does some personal responsibility come into play?
xsmasher 5y ago
>This is way beyond what a high schooler needs for getting started in life. Yes, but high school is your last chance to get it into everyone's heads.

gzer0 5y ago

Perhaps also: That federal income tax in the US is levied in a progressive fashion; for example, to be taxed at the top income bracket at 37% as a single filer in 2022 meant that any money made OVER the amount over $523,600 is taxed at 37%. Too many people I know think that all of their money is taxed at a flat XX% based solely on the highest income tax bracket they are in. This is simply not the case at all.

jjav 5y ago
And in that topic, also that getting a tax refund or having to pay doesn't change anything about the amount of taxes you ended up paying that year. And how getting a big refund isn't a windfall, it's just bad planning.
- rjbwork 5y ago
  Indeed. Actually the opposite of a windfall. You've given the government an interest free loan for up to a year. I try to do minimal withholding and pay my taxes as late as possible.
Spooky23 5y ago
That’s on purpose. The people who quack loudly about taxes prey on the ignorant. The estate tax is the most egregious example.