Taxes for dummies

Get Your Taxes Done Right. No Tax Knowledge Needed. Following is an explanation of the ins and outs of taxes so you can fully understand how they affect your finances.

Taxes are compulsory contributions to the state you live in, and to the federal government, levied by the government to pay for things that society as a whole needs but people can’t pay for individually. Other articles from dummies.

These tax tutorials will guide you through the basics of tax preparation, giving you the background you need to electronically file your tax return. For starters, check out the tax tutorials to find the to these frequently asked questions. Dummies helps everyone be more knowledgeable and confident in applying what they know. The tax code directs the collection of taxes , the enforcement of the tax rules, and the issuance of tax refunds, rebates, and credits. What is IRS Publication 15?

The Internal Revenue Service (IRS) is the government agency within the U. Department of Treasury charged with carrying out these functions.

Calculating Your Total Tax Liability – The United States uses a stepped tax , with different income levels taxed at different amounts. File your tax return on time. While filing your return on time won’t technically reduce your tax liability, it will help you avoid costly penalties and interest.

If you don’t file on time, and you owe money, penalties are charged. In addition, if you don’t ante up on your tax bill, the interest payments can be huge. See all full list on dummies. Your employer remits the tax to the IRS on your behalf.

At the end of the year, your employer will send you a W-showing (among other things) how much it withheld for you that year. A Tax Agent Will Answer in Minutes! Questions Answered Every Seconds. Free for Simple Tax Returns.

Industry-Specific Deductions. The Most Trusted Name In Taxes. Maximize Your Tax Deductions.

This friendly guide is targeted for individual taxpayers and those with special tax situations (self-employe small business owners, etc.). With a tax rate of percent, for example, contributing $10to a retirement plan may save you $7on your current tax return.

Investment earnings on money in your account are not taxed until withdrawal. Deductions are subtracted from your income so you pay taxes on less earnings. But they are like C-corporations in that you normally set a salary and withhold payroll taxes at the corporate level for the owner. Some or all of your income may be reported to you on a Form W-at the end of the year.

One of the advantages of being an S-corporation is the taxpayer’s ability to choose a salary,. Understanding Taxes can take the mystery out of taxes. Say you buy 1shares of XYZ Inc. The total cost is $1and the tax basis of each of your shares is $41.

The Hows of Taxes includes self-paced modules, offering a step-by-step approach to tax preparation. If you sell the 1shares for same $each, and pay $1commission on the sale, you have a $2loss—your $1basis minus the $9proceeds of the sale. However, as we already know, this does not mean you owe in taxes on all of your income.

Being self-employed often means being an independent contractor —that is, an independent business person. It’s really just another way of getting paid for your work.