Taxes, 103-YOU
You probably know Ben Franklin's adage about death and taxes, but back in Ben's day, taxes weren't nearly as numerousânor as complex. Learn about taxes on income, capital gains, property, sales, and more.
Taxes Encyclopedia Articles By Title
1031 exchange rules: How to avoid capital gains tax when selling property
A 1031 exchange refers to the section of IRS code that spells out the law and specific requirements regarding âlike-kindâ......
2026 federal income tax brackets: Rates, standard deduction, and key limits
Each year, the Internal Revenue Service (IRS) adjusts federal tax thresholds for inflation so the increase in prices......
Alternative minimum tax: Is it only for the wealthy?
Have you heard of alternative minimum tax (AMT)? You may have seen a reference to it on your Form 1040. But do......
Capital gains and losses: How gains, losses, and tax rates work
Selling an investmentâor even your homeâcan trigger a tax bill. Whether you owe capital gains tax depends on what......
Cash vs. accrual accounting: How are you recording revenue and expenses?
How much income did your small business make last year? That answer could vary greatly depending on the type of......
Claiming dependents on your tax return: Who qualifies and why it matters
Claiming a dependent can reduce your tax bill, but not everyone you support qualifies. The Internal Revenue Service......
Donating to a 501(c)(3): Research, verify, donate, itemize, and deduct
Youâve budgeted, saved, and now you want to give something back by making a few charitable contributions. But what......
Donor-advised funds: A way to give to charity and get a tax break
Donor-advised funds (DAF) have surged in popularity over the past few years, according to data compiled by Giving......
Donât fear the gift tax: Understanding gift tax exclusions and rules
The so-called gift tax. Itâs one of the more perplexing taxes in the U.S. Unlike other types of IRS leviesâsales......
Donât get spooked by your tax bill
Editorâs note: This article first appeared in Money Matters, a newsletter from Britannica Money, on October 11,......
Filing a tax return: When itâs required and when itâs worth it
Filing taxes can feel like a hassle, but not everyone needs to file a return. If you started a new job or are recently......
Filing your taxes: Answers to 6 frequently asked questions
The start of the new year brings the trickle of forms for tax-filing season and the annual debate over whether......
Form 1099: What itâs for and how it affects your taxes
Itâs the end of January, and April 15 seems a long way off, but you may already be receiving 1099 tax forms in......
Give till it hurts: A list of the taxes we pay
âTaxes,â according to Oliver Wendell Holmes, Jr., âare what we pay for civilized society.â Whether you believe......
Got an IRS notice or letter? Here are the steps you need to follow
You filed your tax return on time and did your best to ensure everything was accurate. But then a letter arrives......
How much did I earn? Total income, AGI, taxable income, and MAGI
If youâve ever stared at a Form 1040 and wondered why the Internal Revenue Service (IRS) uses so many different......
How to amend a tax return after youâve filed
Filing your taxes can be complicated, especially if you later realize you need to amend a tax return. Even if you......
How to choose the right tax filing status
Doing your taxes is complicated. But at least one of the first questions on Form 1040 seems easy enough: âWhat......
How to use the student loan interest deduction and claim education tax credits
Nearly 43 million individuals in the U.S. have federal student loan debt, adding up to more than $1.6 trillion.......
How to use your tax refund wisely
Editorâs note: This article first appeared in Money Matters, a newsletter from Britannica Money, on May 20, 2026.......
How your divorce settlement affects your taxes
Divorce can be complicated on many frontsâemotional, legal, and financial. And the financial side often presents......
Marginal tax rates: How federal income tax brackets work
They say nothing in life is certain except death and taxes. But the amount you pay in taxes is anything but certain.......
One big beautiful tax refund?
Editorâs note: This article first appeared in Money Matters, a newsletter from Britannica Money, on March 22, 2026.......
Pass-through income: From your business to your tax return
Many U.S. businesses are organized as pass-through entities, meaning they generally donât pay federal income tax......
Paying and filing taxes
Youâve heard all the jokes and tropes about taxes. They say nothing is certain in life except death and taxes;......
Save, spend, or invest: How to handle tax refunds and other financial windfalls
Whether itâs a refund you expected or a check out of the blue, finding money waiting in your mailbox can feel even......
Self-employed tax deductions: What you can claim on Schedule C
One of the advantages of being self-employed is that many ordinary business costs can reduce your taxable income.......
Self-employment tax: Filing, paying, and staying current
Youâve started your own business and kept track of your income and expenses. Now itâs time to use that information......
Should you itemize tax deductions or take the standard deduction?
You know how people joke about showing up at their tax preparerâs office with giant boxes of receipts? Those days......
Snowbird? Empty nester? Tax tips to consider if you spend time in two states
Ah, the empty nest! Itâs time to move where you want to move and do what you want to do! But if you think you can......
State and local taxes you paid: Are they tax deductible?
Government services like roads, schools, and social programs donât come free. To fund these necessities, federal,......
Tax deductions, tax credits, and tax refundsâwhatâs the difference?
Tax season. Perhaps it should be called âtax-confusionâ season. For example, youâve probably heard people talk......
Tax schedules and forms related to Form 1040, U.S. Individual Tax Income Tax Return
Itâs time to file taxes again this year. You might prepare your taxes yourself or have a tax preparer help you.......
The kiddie tax: How the IRS taxes your childâs investment income
Before the Tax Reform Act of 1986, parents who had some good tax-planning advice were able to put investments in......
The price of procrastinating on your tax filing
Editorâs note: This article first appeared in Money Matters, a newsletter from Britannica Money, on March 15, 2026.......
What are tax credits and how do they work?
Tax credits can be among the most valuable tax breaks because they directly reduce your tax bill. If you qualify......
What is a 501(c)(3) nonprofit organization and how do I start one?
Have you ever wondered how an organization can be nonprofit? A 501(c)(3) nonprofit organization earns its classification......
What the earned income tax credit means for working families
The earned income tax credit (EITC) is one of the federal tax codeâs largest benefits for workers with low to moderate......
You can file a tax extension, but should you?
Everyone knows that âscaryâ date of April 15âthe day taxes are due each year. But you may have heard of a friend......