What are Taxes and why do we pay them?
Taxes are fees that individuals and businesses pay to the government to fund public goods and services such as infrastructure, education, healthcare, and national defense. Taxes are imposed on various types of income, property, and goods and services, and they can be collected by the federal, state, and local governments.
Did you know that you can have your taxes done for free with VITA (Volunteer Income Tax Assistance) if your annual income is less than $60,000? Click HERE to book an appointment.
To file my taxes, what documents do I need?
- Social Security number or Tax Identification Number
- Another form of identification - any government issued ID that includes a photograph (license, passport, state ID card)
- All W-2's from your employer(s)
- All 1099 forms
- All 1098 tax deduction forms
- Receipts for expenses (medical bills, charitable contributions, IRA contributions, education expenses, business expenses)
- Not required, but can be helpful: copy of your latest tax return
How does the government determine how much I pay in taxes each year?
You may have heard the terms standard deductions and tax brackets. You've possibly heard people saying the more you make, the more taxes you pay.
Here are two helpful links to understand what a Standard Deduction is and how Tax Brackets work.
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