Here Comes the Taxman
5 min read
- Taxes are one of those things in life that you just have to do.
- There are lots of resources out there to help you with your taxes.
- The last day to file your taxes is April 15th.
“In this world, nothing can be said to be certain, except death and taxes.”
Taxes are a part of life. We pay them whenever we buy something and they are taken out of our wages every paycheck. There’s not much that we can do about it. One thing we can do is be more prepared and educated to handle them. If you’re lucky you may even get some money back from the IRS this year. Wouldn’t that be great?
Here are some helpful terms to know and some great resources to help you with your taxes.
- AGI – This stands for Adjusted Gross Income and is the total income you receive over the year minus certain expenses you can declare. The bigger your AGI the more taxes you will have to pay. Here is how you can reduce your AGI.
- Tax Credits – These are certain benefits the government lets you take that will directly lower your tax bill. These include things like education or children. Here is a list of five common tax credits.
- Tax Deductions – The IRS allows you to subtract things like student loan interest, moving expenses, alimony payments, and many other things to reduce your AGI. There are many deductions that people overlook.
- Withholding – Each paycheck, your employer withholds taxes to pay to the government. Sometimes they withhold too much and you get a tax refund. Sometimes they withhold too little and you have to pay more taxes. You should check that your employer is withholding the correct amount. Learn more here.
Another helpful tool is that you can file your taxes for free online with the Free File Alliance. If your AGI is less than $69,000, you can select from a set of different platforms that will help you file your taxes. It can save you between $30 and $150 that you might pay on TurboTax or H&R Block.
Filing your taxes really doesn’t have to be that complicated. There are lots of great resources out there to help you.
Just don’t forget. Taxes are due on April 15th.
“Let me tell you how it will be
There’s one for you, nineteen for me”
Sources:
How Many Allowances Should You Choose on Form W4
List of 14 Commonly Overlooked Personal Tax Deductions & Credits for Individuals
Reduce Your AGI Income & Taxable Income Savings
The Five Biggest Tax Credits You Might Qualify For