As tax season approaches, many Americans dread the process, often lacking fundamental knowledge about taxes. This lack of education hinders their ability to accurately answer common tax questions, such as the taxation of Social Security benefits and the deductibility of expenses like cell phone bills. Specifically, Social Security can be taxed based on income levels, while self-employed individuals can deduct relevant business expenses. Additionally, itemized deductions may apply to various contributions and expenses, emphasizing the need for better tax education among the general public.
You will pay federal income taxes on your Social Security benefits, but this comes with a caveat. You won't owe anything if you earn less than $25,000 in your combined annual income.
Anyone who is self-employed and uses a cell phone for work can deduct their cell phone bill and the purchase of a new one from their tax bill.
You can make itemized deductions from your overall tax bill if you contribute to an IRA, HSA, or FSA.
Many Americans lack a basic understanding of tax processes, affecting their ability to accurately file taxes.
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