Taxes 101

Subject: Financial Literacy  ·  Grade level: 10th

W-2 vs 1099, marginal brackets, deductions vs credits, and how refunds actually work.

In this lesson

• Your paycheck stub explained
• Marginal tax brackets (the big myth)
• Deductions vs credits

Key terms

Gross pay

Total earned before any deductions.

Federal withholding

Federal income tax estimated and pulled each pay period.

FICA

Social Security (6.2%) + Medicare (1.45%) taxes.

Net pay

Take-home pay after all deductions.

Taxes 101 lesson on BrightPath

BrightPath Tutoring offers free interactive lessons and 1-on-1 tutoring for students in grades 3–12. Based in the San Fernando Valley, Los Angeles, CA.