A tax return is the form you file with the IRS. A tax refund is money the government sends back to you if you've overpaid your taxes.

Remember, a larger refund means you're giving the government an interest-free loan.
The simplest way is to increase your withholding on your paycheck or to overpay your taxes!

No, bonuses are not taxed at a higher rate. The withholding on bonuses might be LOWER than your actual tax rate! The actual tax rate is the same as your regular income. So you might end up OWING more because your bonus didn't withhold enough.

Congress writes the tax laws, not the IRS. If you don't like something about the tax code, direct your concerns to your elected representatives in Congress.

Tax withholding is the amount of tax taken out of your paycheck or other income sources throughout the year. Tax liability is the total amount of tax you owe for the year. Your withholding might be more or less than your actual tax liability. That is what causes a refund or balance due.

No, forming an LLC doesn't change how your taxes are calculated or what you can deduct. An LLC is a legal structure, not a tax classification.

Yes and no, you can only deduct the portion of expenses related to business use. Keep a detailed mileage log for business trips.

Yes, all income, including cash, is reportable and taxable.
Al Capone was caught, in part, to not reporting all his income.

Yes, income received through PayPal, Venmo, CashApp or any other payment platform is generally taxable.

Yes, if you're an owner-employee of an S-Corporation, you must take a reasonable salary. You can't elect to take no salary to avoid payroll taxes.

Generally, no. Your corporation should not pay for your personal expenses. There are Tax implications, Corporate tax issues, legal concerns, and accounting complications, so check with your CPA.

Yes, even if you reinvest dividends and capital gains, they are still taxable in the year they're earned.

Yes, withdrawals from traditional retirement accounts are typically taxed as income and may push you into a higher tax bracket.

Yes, contributions to certain retirement accounts can reduce your taxable income for the year. But there are OPTIONS. Make sure the retirement vehicle makes sense for you.

No, don't buy things solely for tax deductions. You're still spending more than you're saving in taxes.
The exception is when you're going to buy it anyway. Timing can be super important!

Charitable donations are only deductible if you itemize deductions, and the total of your itemized deductions exceeds the standard deduction. The same goes for charitable contributions paid by your business!

A tax deduction reduces your taxable income, while a tax credit directly reduces your tax bill dollar for dollar.

It depends. While there are provisions like Section 179 and bonus depreciation that allow for immediate expensing of certain assets, it's not always beneficial to take the full deduction in the first year. Consider the long-term impact on your business and consult with a tax professional.

No, not all tax credits are refundable. Non-refundable credits can reduce your tax liability to zero, but you won't receive any excess as a refund. Refundable credits, on the other hand, can result in a refund even if they exceed your tax liability.

Keep all relevant tax documents organized throughout the year. This includes receipts, bank statements, and any forms you receive (like W-2s or 1099s). Consider using digital tools to scan and categorize your documents. Don't wait until tax season to get organized.

Open and read any mail from tax agencies immediately. Many notices have deadlines for response. If you don't understand the notice, contact your tax professional promptly.

Yes, contributions to certain retirement accounts can reduce your taxable income for the year. But there are OPTIONS. Make sure the retirement vehicle makes sense for you.

The duration for keeping tax documents depends on the type of document and the situation. In general, keep all tax documents for 7 years. Exceptions would be:

If you didn't file a return - keep indefinitely.

Property Records should be kept until the period of limitations expires for the year in which you dispose of the property.

Retirement account contributions records should be kept until you've withdrawn all the money from the account.

This isn't all inclusive, but should give you a good starting point! When in doubt, just keep it, even electronically.