tax return

Ewwww taxes.
Let’s just talk about the basic here.

DEFINITION
What’s a Tax Return?

Throughout the year, whether you're working a job or making money from side hustles, the government takes a portion of that money as taxes. When tax time rolls around, you fill out your tax return form (In the U.S.A., the most commonly used form for individual income tax returns is Form 1040). It includes details about your income, like how much you earned from your job, any interest you earned from your bank accounts, and so on.

The government uses this information to figure out if you've paid too much in taxes or not enough. If you've paid too much, they give you back the extra money as a tax refund. But if you haven't paid enough, you'll need to pay them what you owe.

So, a tax return is basically your way of showing the government, "Hey, here's how much I made, here's how much I've already paid in taxes, and here's what I owe or what you owe me." It's like a financial checkup with the government to make sure everything's on track with your taxes.

PRACTICAL ADVICE
Don’t pay taxes

Jk, you could go to jail for this “practical advice”

But when it comes to tax time, work with an accountant to make sure you get all the tax perks from living the way you do. Maybe you went to college, maybe you’re paying off loans, maybe there’s something in your life that you put money towards that can save you THOUSANDS on your tax bill.

HELPFUL RESOURCES
One of my favorite beginner tax channels on YouTube

• Check out Karlton Dennis, he’s a legend!

OUR COMMUNITY
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