Lesson Plan

Taxes: An Introduction

Skills used in this lesson: Taxes
Download

Worksheets

Tax Season Worksheet

Games in This Lesson

Tax Season: Audit Adventure

Tax Season: Audit Adventure

Curriculum Standards used in this Lesson:

Finance

  • 18. Demonstrate procedures for completing and filing income tax forms, utilizing tax terminology.

Social Studies

  • SS.9-12.12.5: Calculate tax contributions to local, state, and federal governments and describe the benefits that the taxes may provide to individual and societal structures.

Social Studies - Economics

Financial Literacy Model Framework

  • 1.3: Analyze income, payroll, and employment forms.

Personal Finance

Personal Financial Literacy

Standards for Personal Financial Management and Financial Literacy

Financial Literacy

  • Students will analyze how choices that individuals make in jobs and careers affect quality of life.

Financial Literacy Standards

Financial Literacy

Personal Finance and Economics

Financial Literacy Standards Fall 2025 (Draft) - Senate Concurrent Resolution No. 66

House Bill No. 92 - Financial Literacy Standards (2023)

Illinois Learning Standards for Social Science

Personal Financial Responsibility Course and Standards

  • 12-2.2: Identify sources of personal income.
    12-2.3: Explain how taxes and employee benefits relate to disposable income.

Financial Literacy

  • SS.9-12.15: Evaluate the effect of taxes and other factors on income. (21st century skills)

Jump$tart National Standards in 2022

Financial Literacy

Financial Literacy

Economics

Financial Literacy Education

  • 3.C: Evaluate the purposes and responsibilities related to taxation.

Personal Financial Literacy in the Massachusetts Curriculum Frameworks

  • ECON.T4: The role of government
  • PFL.T1: Earning and spending income

Merit Curriculum: Personal Finance

Personal Finance

Personal Finance

  • 2.1: Differentiate between and give examples of earned and unearned income.
    2.2: Discuss human capital and how personal choices influence income.
    2.3: Differentiate between gross and net income.
    2.4: Describe information and required forms relevant to the completion of state and federal income-tax forms.
  • 6.3: Research and describe other considerations and items related to savings and investing. DOK2

Personal Finance

  • Concept 2: Forms of Compensation
    Concept 3: Taxes and Other Deductions

Financial-Literacy Themes

Financial Literacy

  • SS HS.2.2.c: Assess the effects of taxes on personal income.

Financial Literacy

  • SS.FL.2: Evaluate assessment and computation of taxes at the local, state, and federal level.

Social Studies

  • SS:EC:4.3: Distinguish between monetary policy and fiscal policy and how they influence the economy, e.g., the reserve ratio or taxation.

Career Readiness, Life Literacies, and Key Skills

  • 9.1.12.EG: Economic and Government Influences
    9.1.12.PB: Planning and Budgeting

Economics/Personal Financial Literacy

  • 9-12.Econ.50: Identify voluntary (e.g., retirement contributions) and involuntary deductions (e.g., payroll taxes) and how they impact net income.

Financial and Consumer Literacy

Standards for Economics and Personal Finance

  • EPF.IE.2: Understand the purpose and function of taxes and the impact on income.

Personal Finance Concepts

Learning Standards: Financial Literacy

  • 5: Taxes, retirement, insurance, employment benefits, and both voluntary and involuntary deductions impact take-home pay.
  • 9: Planning for and paying local, state and federal taxes is a financial responsibility.
    10: Tax payers may save money by understanding and using tax credits and deductions.

Personal Financial Literacy

High School Personal Financial Education Content Standards

  • HS.PFE.D.1: Define and identify examples of common types of income.
    HS.PFE.D.2: Understand the personal income tax filing cycle, including common tax forms and available tax preparation resources and options.
    HS.PFE.D.3: Understand taxes associated with various sources of income and common tax credits that could reduce individual tax liability.
    HS.PFE.D.4: Understand common types of federal, state, regional, and local taxes and associated tax-funded services provided.

Academic Standards for Personal Finance

Jump$tart National Standards in 2022

Advanced Personal Finance Code: 5131

Personal Finance Code: 5141

Personal Finance

  • PF 1.2: Analyze factors that affect take home pay.

Personal Finance

  • 2.5: Take Home Pay: Describe factors affecting take-home pay such as tax withholdings, benefits (e.g., insurance, 401k), and plan payroll deductions.

Essential Knowledge and Skills for Social Studies

General Financial Literacy

  • Identify sources of income and specific employability skills.

Jump$tart National Standards in 2022

Economics and Personal Finance Standards of Learning

State Learning Standards: Financial Education

  • Analyze factors that affect net income.
    Compare sources of personal income and compensation.

College & Career Readiness - Personal Finance

Standards for Personal Financial Literacy

Social Studies Content and Performance Standards

Essential Question: How do income taxes work? 

Overview: Students play Tax Season: Audit Adventure, and file simplified income tax returns to understand key concepts related to taxation. 

Introduction: Players take on the role of a tax accountant in a zany world. Each “year” the player will fill out tax forms for a variety of kooky characters like a werewolf gym owner who keeps ripping their shirt, or a ghost with a vacation rental side business. 

While filing returns in this game feels like an other-worldly adventure, the tax system still mirrors U.S. income tax rules. The game gradually teaches players how the U.S. income tax system works (income, deductions, credits, progressive taxation, and even LLC pass-through taxation) through humor, oddball characters, and escalating challenges. 

Objectives: The student will… 

  • Learn about different types of income and which are taxed
  • Learn about deductions (both itemized and standard deductions), credits, and the difference between them
  • Learn about progressive taxation and the myth of the “progressive tax cliff”
  • Encounter characters in different careers and stages of life to see how their income is taxed
  • Learn about business taxes, types of income, payroll taxes, and state and local taxes 

Standards: Jump$tart Coalition National Standards for Personal Financial Education (2021) 

Earning Income: 

  • 4-3: There are different ways to be paid for labor, including wages, salaries, commissions, and tips.
  • 4-7: Most income is taxed by the government to pay for government-provided goods and services
  • 8-7: People are required to pay taxes on most types of income, including wages, salaries, commissions, tips, earnings on investments, and self-employment income.
  • 12-2: Compensation for a job or career can be in the form of wages, salaries, commissions, tips, or bonuses, and may also include contributions to employee benefits, such as health insurance, retirement savings plans, and education reimbursement programs.
  • 12-7: The type and amount of taxes people pay depend on their sources of income, amount of income, and amount and type of spending.
  • 12-9: Tax deductions and credits reduce income tax liability.
  • 12-10: Retirement income typically comes from some combination of continued employment earnings, Social Security, employersponsored retirement plans, and personal investments.
  • 12-11: Owning a small business can be a person’s primary career or can supplement income from other sources. 

Saving: 

  • 12-6: Tax policies that allow people to save pretax earnings or to reduce or defer taxes on interest earned provide incentives for people to save.