It's Tax Season!
Tax day is on April 15, unless it falls on a weekend or holiday. In that case, taxes are due on the next business day. Based on your income and lifestyle, taxes are filed differently, and you need to make sure you are thorough in paying what you owe and saving where you can.
Your Federal Income Taxes are a percentage of your income that is paid to the government and used to fund public goods and services. If you work for an employer, based on what you selected on your W4, they’ll withhold part of each paycheck to help account for these taxes. However, if you’re self-employed you’ll need to take care of these payments yourself. Determining how much you owe is based on many factors, but your tax bracket and filing status will likely have the biggest impact.
Federal income tax is taxed progressively. This means that the government creates brackets and that money that falls into each bracket is taxed at a specific percentage.
When filing your tax return, it's a matter of following the line-by-line instructions. Each tax form has its own set of instructions, charts, and worksheets to help you figure out if you’re eligible for credits, deductions, and exemptions.
Need some extra help? Check out these articles and coaches for more information on taxes: