3 Tidbits You Can Teach Your Child About Taxes

3 Tidbits You Can Teach Your Child About Taxes

The education of young people is a debated topic within our society. The Tax Cuts and Jobs Act authorized 529 plans (e.g., prepaid tuition) to pay for tuition for K-12 like private and religious schools. Parents will use this opportunity to send their kids to schools of their choice. 

Education is a necessary tool for success. How much does your young one know about the institution of taxation in America? Review the following notes during your family time:

  • Levying taxes raises revenue for a government so that it can provide social services, pay its debts and conduct business on behalf of its communities.
  • The 16th Amendment of the United States Constitution authorizes the federal income tax.
  • The government expects self-assessment compliance with tax laws. Millions of taxpayers file tax returns annually. But, many people do not like to pay taxes.

The United States of America’s debt is trillions of dollars. Its people have expectations of social services. Thus, federal taxation is not going away anytime soon. If it did, would we be the United States of America?

As a side note, research your state revenue administrator’s provisions for 529 plans. State and federal provisions may differ. Look up Taxation History of the United States and www.gsa.gov for more information. 

Contact Pierce, CPA & Advisors at (205) 370-4508 or welisten@AuthenticCPA.com today! Let us discuss your self-assessment compliance with tax laws.

Pierce, CPA & Advisors’ website, social media posts and blogs are meant to be used as informational guides and should not be construed as providing any health, legal, business or accounting advice. A best practice is to consult with professionals like government officials, healthcare experts, Certified Public Accountants, attorneys, etc., about your situation.

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