I am breaking down how to read your federal tax return and understand what it all means. Of the most important aspects of your tax return is understanding what taxable income is and how it's calculated, understanding the differences between itemized and standard deductions, and knowing how to determine how much you actually owe in taxes versus what you've already paid in.
The goal of this episode should help you understand the meat of your tax return and help you formulate questions to ask your accountant about anything that doesn't quite look right or that you do not understand.
What you'll hear in this episode:
[3:33] What is contained on the first half of the first page of your 1040?
[5:35] What is contained in the income section of your 1040?
[7:10] Should I take itemized or standard deductions?
[11:34] What goes into your total income?
[15:25] Where is your total tax shown on the 1040 and what goes into it?
[16:11] How to figure out the difference between what has already been paid in taxes and what you owe.
[19:18] If you are short on time, these are the keys to understanding the meat of your tax return.
[20:44] Challenge your accountant to explain any questions to you.
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