Fp 101:Effective Tax Management

279 Words2 Pages
Assessment A: Understanding Taxable Income and Taxes Owed Meaning of taxable income and taxes owed Taxable income is the amount you must pay on once all deductions are adjusted from your gross income. The amount of taxes you must pay on according to the tax laws. Taxes owed are the amount you must pay depending on any deductions that you may have. Someone will owe a different amount of taxes depending on if they paid for child care, attended school full time, cared for an elder, owns a home, made donations or any other deductions. Assessment B: Understanding Ways to Save on Federal Taxes Some ways to save money on your federal income tax Some ways to save on your federal income tax is to get a house because you can deduct the interest you paid on your mortgage or home equity loan. You can deduct your expenses to save on your taxes. Do other things like donate to charity and give donations to family members up to a certain amount of money. You can also have a flexible spending account that is set up through your employer that can help you to pay for things and is pre-taxed so you get more for your money. You must always remember the marginal tax effect. Having a child, children, or other dependents can help you save as well on your income tax. Assessment C: Understanding the Steps to Filing a Federal Tax Return Steps to filing a federal tax return Steps for filing a federal tax return: 1) Sign and date the return. 2) Assemble the return. 3) Mail the return. 4) Keep a copy for your

More about Fp 101:Effective Tax Management

Open Document