The Crucial Lesson High Schools Are Still Not Teaching: Taxes
Key Takeaways:
Despite its central role in adult life, tax education is largely absent from high school curricula.
Many individuals and business owners in the DMV region enter adulthood without a clear understanding of tax obligations, opportunities, or pitfalls.
This tax knowledge gap can lead to costly mistakes for professionals, small business owners, and high-net-worth individuals.
Proactively learning about taxes—especially federal, state, and local tax systems—can yield significant financial advantages.
Business owners should integrate professional tax planning into their risk management strategies to maximize compliance and minimize exposure.
Why High School Doesn't Teach Taxes — And Why It Matters for Professionals and Business Owners in the DMV
Every April, Americans across the country submit tax forms, navigate filings, and scrutinize deductions. The process feels routine, but the knowledge required to manage it well isn't inherent — it's learned. Unfortunately, that learning rarely happens in the classroom.
For business owners, investors, and professionals in Maryland, D.C., and Virginia, the lack of foundational tax education can carry real consequences. A simple knowledge gap can evolve into a costly error — whether it's failing to strategize around capital gains, improperly classifying income through a partnership, or missing estate planning opportunities.
So why isn't tax education standard in high school curricula? And more importantly, what can adults in our region do now to close the gap?
Let's break down what's missing, why it matters, and how you can get ahead.
The Tax Literacy Shortfall: A Systemic Oversight with Real-World Costs
High schools have long prioritized subjects like civics, literature, and math — all valuable in their own right. Yet students rarely graduate with an understanding of how to file a tax return, classify income, or identify legal deductions. According to the IRS, national data show 62 percent of filers learn taxes independently, and only 7.5 percent learned in high school.
Years later, that omission shows up in multiple ways:
A young entrepreneur starts an online store without understanding self-employment taxes.
A high-net-worth individual unknowingly triggers gift tax issues while transferring wealth to family.
A new partner in a law firm doesn't anticipate the partnership's pass-through implications at tax time.
Without the tools to navigate these issues proactively, professionals often rely on reactive decisions — or worse, guesswork.
The DMV Region: A Complex Tax Landscape
The tax challenges are especially pronounced in the D.C., Maryland, and Virginia region. Each jurisdiction has unique laws, incentives, and filing requirements. Professionals who live in one jurisdiction and work in another, like thousands of federal employees or private sector executives in the DMV, can find themselves tripping over dual-state tax filings or missing municipal obligations altogether.
If you're running a business in Virginia with Maryland-based employees, or if you're planning to invest or retire in D.C. while owning property elsewhere, the stakes are even higher. The interlocking tax codes among these areas create complexities that demand careful planning — ideally with experienced guidance.
Here's how that knowledge gap can create larger risks depending on your structure.
Implications for Different Types of Taxpayers and Business Entities
▶ For Individual Taxpayers
Lack of education around deductions, credits, and tax bracket planning can cost individuals thousands each year. For example, a professional who fails to account for 401(k) contributions, HSA eligibility, or dependent care credits may overpay — or leave audit triggers unintentionally.
Real-life scenario: A D.C. resident who works remotely from Virginia may not properly allocate wage income, inadvertently over- or under-paying state taxes. Without guidance, they risk penalties and stress during an audit.
▶ For LLCs and Sole Proprietors
Many entrepreneurs default to sole proprietorships or single-member LLCs but fail to plan for the self-employment tax burden or quarterly estimated payments. Tax education could have guided them toward a better structure — or at least budgeting more effectively.
Real-life scenario: A Maryland-based independent contractor makes $180,000 but doesn't plan for quarterly payments. When tax day arrives, they face a $40,000 liability and a depleted bank account.
▶ For Partnerships and S-Corps
Owners may misunderstand the nuances of pass-through taxation—especially when it comes to profit allocations, guaranteed payments, or handling state-specific apportionment rules.
Real-life scenario: A multi-partner tech startup with operations in Virginia and investors in D.C. mismanages its K-1 distribution, creating uneven tax impacts across stakeholders.
▶ For Estate Planning
Estate taxes vary significantly between jurisdictions. Maryland, for example, has both an estate and inheritance tax — details many families overlook until it's too late. Early tax education could have prompted more strategic gifting, trust formation, or charitable planning.
Real-life scenario: A high-net-worth Maryland couple leaves a multi-million-dollar estate to heirs. Unaware of state inheritance laws for non-lineal descendants, the family faces a significant tax bill that could have been avoided with better preparation.
What Business Owners Can Do: Strategy Over Reaction
If you're running a business in any part of the DMV, you already know that regulatory and tax compliance isn't optional. But compliance alone isn't enough. Strategic tax planning needs to be a core business function — ideally from the start.
A few practical steps:
Schedule routine consultations with tax and business counsel.
Choose your business entity with tax implications in mind — not just simplicity or default settings.
Document ownership interests, profit allocations, and payment structures clearly.
Don't just meet deadlines — plan for next year's numbers today.
Risk Management Begins with Tax Awareness
Unclear tax knowledge doesn't just lead to overpayments or missed deductions. It's also a major source of risk. IRS or state audits, penalties, and forced compliance measures can be disruptive and expensive.
Tax audits often hinge on record-keeping, documentation, and proper classification of income — all of which tie back to having a working knowledge of tax standards. The more proactive your processes, the easier it becomes to withstand scrutiny if and when the IRS comes knocking.
Don't treat tax compliance as an afterthought. Build it into your broader risk management plan.
The Role of Education — Even After Graduation
Though a change in national curriculum might be out of reach, learning doesn't stop at high school. Adults in the DMV have abundant resources for building their tax literacy:
Engage with a business and tax attorney familiar with state-specific laws.
Attend free or paid workshops hosted by local CPA societies or bar associations.
Leverage tools like IRS Taxpayer Advocate resources or Maryland's Comptroller Tools.
Subscribe to updates from your county, city, or state's Department of Revenue to track changes.
For business owners, invest in education for your team — especially your finance and operations leads.
The tax world is constantly shifting. In Maryland, recent legislation changed the estate tax threshold. In D.C., changes to property tax discounts for seniors have created both opportunities and confusion. Federal law now includes provisions on electric vehicle incentives and R&D deductions under evolving IRS guidance.
Staying informed isn't just a smart move — it's necessary.
Unique Insights: Taxes are Not Just a Cost — They're a Planning Tool
Understanding taxes isn't just about compliance or avoiding penalties. Taxes can be a tool for building wealth and protecting your business — if you start applying strategic thinking early.
A high-earning individual who structures charitable giving through a donor-advised fund could reduce taxable income while supporting causes they care about. A business anticipating a strong revenue year might benefit from accelerating certain expenses or choosing the right depreciation method. A married couple could make strategic use of the annual exclusion gift — currently $19,000 per recipient — to pass wealth to the next generation with purpose and precision.
These aren't complex schemes. They're sensible, legal, and powerful — but they require education.
That's why, even though high schools aren't teaching taxes, you shouldn't settle for what you didn't learn in your teens.
Conclusion: Don't Let the Gaps of Yesterday Cost You Tomorrow
Taxes are a pillar of financial life — and yet for most people, real tax education doesn't start until a mistake has been made. You don't need to wait for a penalty letter or a missed refund to take action.
Whether you're a business owner, an executive, or someone simply trying to manage personal wealth responsibly, tax-savvy decisions now can transform your financial future. At Thienel Law, we help clients in Maryland, Virginia, and Washington, D.C. turn tax uncertainty into clear, confident planning.
If you're unsure how this applies to your business or personal situation, we're here to help. Schedule a consultation with Steve Thienel to get advice tailored to your goals.