Every year, you have to pay a large portion of your income to taxes.
Whether those taxes are property taxes, local taxes, state taxes or
federal taxes, a big chunk of your income goes toward paying these
bills. The Tax Foundation has a unique way of looking at this burden,
using a concept known as Tax Freedom Day.
Once one gets into the process of filling out a tax return, there’s a
whole world of possibilities that can occur. The tax code, both at the
federal and state levels, provides for a number of opportunities where a
filer can reduce his taxes owed. These adjustments are typically seen
in the form of a tax credit or a tax deduction. One thing is for sure: they're not the same.
If you've waited this long to file your tax return, it may be time to
put aside the 1040 and go straight for the 4868. That's the form you'll
need to request a six-month extension from the Internal Revenue Service
if you can't make tonight's midnight deadline.