Two things are certain in life: death and (the anxiety while doing) taxes. But a little prep can help get rid of the tax season scaries. We’re here to hold your hand.
The most popular tax return form. Where you tell the IRS all your secrets: your name, address, filing status, and how much you made in the past year.
Your best friend in tax document form if you earn money from anywhere (or anyone) other than your regular 9-5. Collect them from freelance clients or the bank that paid interest on your savings account. Then use the info to fill out your tax return.
Adjusted Gross Income (AGI)
Your gross (aka total) income for the year minus certain payments you’ve made. Like student loan interest and IRA contributions. Hint: the more you can subtract, the better.
When the IRS takes out their magnifying glass and double checks that you filed your taxes correctly. Not a reason to panic...as long as you told the truth, the whole truth, and nothing but the truth.
Anyone you support financially. Usually a child, spouse, or retired parent you ‘invited’ to move in. The more you have, the less you could pay in taxes. Yes, please.
A category that helps determine your tax liability and standard deduction amount. Based on things like your marital status and how much you contribute to household expenses.
One of seven buckets the gov puts you in based on how much money you make. Mo money, mo taxes.
An amount you can subtract from the taxes you owe because you did something the gov likes. Think: saving for retirement, investing in your education, having a kid, installing solar panels, etc.
When the gov cuts you a break, and lets you subtract some costs from your taxable income. Choose between the standard (flat-rate) discount or itemized one, where you add up all the dolla bills you could get off and hope it’s higher.
Money mail you get if you paid more taxes than you needed to. Seems great, but actually means you gave the gov an interest-free loan. With money you could have invested or bought a pony with.
The paperwork that stresses you out every April. And tells Uncle Sam whether he owes you or you owe him.
The doc where your employer comes clean about how much they paid you in the past year...and how much they withheld for taxes. V helpful for filing your return.
That form you fill out when you start a new job. It tells your company how much to withhold from your paycheck. Psst...you might wanna edit yours when you: have a kid, get married, or cash a big tax refund check.
The part of your paycheck that your boss puts toward your taxes. The amount depends on your earnings and how you filled out your W-4.
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