Choosing the right course of action with tax liability can lead to larger refunds or less withholding. Prepare for taxes the right way by familiarizing yourself with the process and working with a tax professional.
Watch the video to learn about Tax Planning, Filing and Refunds, then test your knowledge at the end of the lesson.
What is the difference between a standard deduction and an itemized deduction?
A. A standard deduction applies to higher income households, while an itemized deduction gives tax breaks to lower income households.
B. A standard deduction applies to full-time employees, while an itemized deduction gives additional tax breaks to part-time employees.
C. A standard deduction claims an amount set by the government, while an itemized deduction requires an account of deductible expenses.
D. A standard deduction requires an account of deductible expenses, while an itemized deduction claims the amount set by the government.
If you save receipts for deductible expenses, a professional tax preparer can apply certain expenses towards taxable income, which could lead to a larger refund.
A. True
B. False
Major life events can impact your tax liability, such as:
A. New employment
B. Marriage
C. Home purchase
D. All of the above