Empowering Youth Through Tax Literacy

Youth economic advancement

South LA

Expand existing project, program, or initiative (expanding and continuing ongoing, successful work)

Over the last year, with LA2050 support, we’ve learned that a persistent gap remains in early-age programs promoting tax literacy and hands-on experience, leaving youth unprepared for real-world financial obligations. YBA, in collaboration with HNS, trained 18 high school students in basic tax preparation; 14 earned advanced tax preparer certifications and 8 served as VITA tax preparers. Pre-survey data revealed significant gaps in students' foundational knowledge, from types of taxable income to required documentation. Over 45% misunderstood whether all income is taxable, and fewer than half could identify correct filing statuses. These gaps reflect a structural lack of financial education in high school. However, students are motivated to gain financial literacy and independence. A student shared, “I will use the finance teachings from right now, including this tax presentation to use for doing my taxes when I'm an adult and create that sense of independence I am capable of having.”

After a successful pilot, YBA and Haven aim to expand and refine the tax literacy program. With a continued focus on BIPOC youth from low and moderate-income backgrounds, students will learn essential skills from basic tax filing to advanced topics such as capital gains and tax credits. After thorough training, students will gain hands-on experience by filing taxes at HNS's VITA sites under the supervision of certified tax preparers. We learned that students participated in the greatest numbers when attending training and tax prep days as a class event. We plan to add a VITA tax day at the partner high school, benefiting local families. Our pilot group completed 91 tax returns, with each student averaging 11-12 tax returns filed, returning more than $140,000 to their community. Students expressed how their tax preparation work directly supports low-income families by relieving them of the stress of having to pay for tax services. Building on the success of the pilot program, this year’s tax literacy initiative will double in size and support even more students in completing the hands-on filings. Many students shared that the program strengthened their communication skills and boosted their confidence, and as 12th graders in the fall, the experienced students will join the new trainees in tax filing for low-income families.

Our pilot program demonstrated that students are capable of learning and completing tax filings at an advanced level. A total of 8 students completed all requirements of our Youth Tax Literacy program, resulting in $140,000+ in tax refunds returned to their community. As students learn how to file taxes and understand financial systems, they also bring this knowledge home, supporting intergenerational learning and strengthening their families’ financial knowledge. Los Angeles County will see more families accessing critical tax credits like the EITC and Child Tax Credit, channeling significant dollars back into under-resourced neighborhoods. Students will graduate with hands-on job experience, strengthened resumes, and IRS certification that sets them apart in college and career pathways. The long-term goal as the program receives further funding is to expand to more YBA school partners, training hundreds of students with an alumni program, returning millions into the local markets.