Taxes
Understand how taxes work, how to file your return, and strategies to minimize your tax burden.
12 Lessons
4 Tools
8 Key Concepts
Key Concepts
taxes
Money paid to the government based on your income, purchases, or property. Funds public services like roads, schools, and healthcare.
tax bracketIncome ranges taxed at different rates. Only income WITHIN each bracket is taxed at that rate—not all your income.
tax deductionAn expense that reduces your taxable income. A $1,000 deduction in the 22% bracket saves you $220 in taxes.
tax creditA dollar-for-dollar reduction in your tax bill. A $1,000 credit saves you $1,000—much more valuable than deductions!
withholdingMoney your employer takes from your paycheck and sends to the government for taxes. It's a prepayment on your tax bill.
W-2A form your employer sends each January showing how much you earned and how much tax was withheld. You need this to file taxes.
W-4A form you fill out when starting a job that tells your employer how much tax to withhold from each paycheck.
marginal tax rateThe tax rate on your LAST dollar earned. If you're in the 22% bracket, only income above the previous bracket is taxed at 22%.
Lessons
View allTaxes 101: The Basics Everyone Needs
Foundations5 min
Understanding Your Paycheck: Every Line Explained
Foundations5 min
Tax Deductions vs. Credits: Know the Difference
Building5 min
Filing Your First Tax Return: A Complete Walkthrough
Foundations5 min
Self-Employment Taxes: The Side Hustle Tax Trap
Wealth6 min
Tax-Efficient Investing: Location, Location, Location
Wealth6 min
Tax-Loss Harvesting: Turn Losses Into Tax Savings
Wealth6 min
The HSA: The Best Tax-Advantaged Account You're Not Using
Building6 min
Tax-Advantaged Accounts: The Complete Guide
Building8 min
Tax Strategies for Side Hustlers
Building9 min
Advanced Tax Planning: Strategies for Building Wealth
Wealth11 min
Understanding Your W-2: Every Box Explained
Foundations5 min