People speak of calculating their taxes like it's some sort complex algorithm, only understood by the great financial sages of our time. Others believe that no one really knows what you should be paying, that it's all just random and all you can do is hope you get it close enough to avoid a tax audit! Maybe this misconception is caused from the misinformed belief that money matters are difficult, private, and shouldn't be discussed (let alone understood!), but these beliefs are dumbfounding to someone who knows the rules and just how simple they really are! The real truth is that, for most people, determining your personal taxes is so easy that anyone with a middle school education can do it!
Knowing how simple it really is, I'm always baffled when I talk to intelligent, active thinkers who view taxes as a mystery because that's all they've been told. So today I'd like to take the mystery out of it! I'll break down the concepts surrounding taxes as simply as possible so that you can understand taxes in 10 minutes and then be able to calculate your own taxes so that you can be confident that you're paying the right amount AND so that you can plan appropriately for tax years to come!Continue reading