Chapter 7
Trimming Your Taxes
In This Chapter
Getting the lowdown on taxes and tax rates
Lowering your employment and investment income taxes
Tapping into education tax breaks
Finding helpful tax resources
Making an audit as painless as possible
You pay a lot of money in taxes — probably more than you realize. Few people know just how much they pay in taxes each year. Most people remember whether they received a refund or owed money on their return. But when you file your tax return, all you’re doing is settling up with tax authorities over the amount of taxes you paid during the year versus the total tax that you owe based on your income and deductions.
Understanding the Taxes You Pay
Some people feel lucky when they get a refund, but all a refund really indicates is that you overpaid in taxes during the year. You should have had this money in your own account all along. If you’re consistently getting big refunds, you need to pay less tax throughout the year. (Fill out a W-4 to determine ...
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