An Introduction to Taxes: How You Pay and File
Everybody knows that there are taxes that have to be paid - and
if you live in an area that charges sales tax, you are probably
aware of that type of tax from a very early age. Sales tax and
income tax are some of the most common types of taxes that
people come across early on. However, these are definitely not
the only types of taxes that you will end up paying, even if
they are some of the easiest to understand.
Generally, you will end up paying taxes on a few things. First,
you will need to pay taxes on anything you earn or make - even
if you are not getting the money directly through your job. For
instance, if you go to a casino and win a large amount of money,
you'll have to fill out a tax form before the casino is allowed
to let you cash out. If you invest in the stock market, you'll
have to pay capital gains taxes when you sell your shares.
Taxes are also applied to property that you may own, as well as
excise taxes. Excise taxes are the taxes you pay on cigarettes,
alcohol, and gas. In some cases this is due to these substances
being somewhat restricted, in other cases it is related to how
difficult it might be to import what you are buying.
After a year of work, you'll need to pay or file your taxes.
This depends on the type of job you have and whether or not
you've been paying taxes all along. Chances are, if you work for
a major company, your federal income taxes are taken out of your
paycheck before you even get it. In this case, you will only
need to file your taxes during the first few months of the year
after you earned the money. If you did not work for a company
that takes your taxes out of your paycheck, then you'll probably
end up owing money for your taxes.
There is an exception to this, however. First of all, if you did
not make over a certain amount of money during the year (this
amount varies depending on your living situation), then you do
not owe any taxes. You will still need to file, but any money
that was spent on taxes during the previous year will be sent
back to you.
You can also deduct certain expenses, including money that you
spend on equipment for your own business if you have one.