Timely tax tips for teenagers.

• Position: Employment

The teenage years are filled with fun and responsibility. It's about first dates, the first time behind the wheel, and first jobs. However, all of these "firsts" are accompanied by one thing--money. That is why it is important for teens to learn how to save money, use credit wisely, and pay dues to Uncle Sam.

Mike Sullivan, director of education for Take Charge America, Phoenix, Ariz., a nonprofit credit counseling company, says parents not only should teach their children how to pay taxes, but explain why it is necessary. "Paying taxes is part of proper money management. It is a life skill carried well into adulthood," he indicates. 'Teens need to know that taxes pay for government services, including highways, parks, and law enforcement."

If your teen receives W-2s, 1099s, or other statements of income, he or she might have to file, but even if filing is not required, it usually is a good idea to do so if wages have been withheld. A refund may be due. "It's important for teenagers to become acquainted with taxes while their income is low because, as income increases, the tax laws become increasingly complicated," notes Sullivan. "Staying out of debt is a year-round effort. It includes being responsible for every aspect of your finances, including taxes, no matter how minor or complicated they appear."

Sullivan explains that there are four things working teens should know about income taxes:

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