An Introduction to Taxes: How You Pay and File

Everybody knows that there are taxes that have tomight be to import what you are buying.
be paid - and if you live in an area that charges salesAfter a year of work, you'll need to pay or file your
tax, you are probably aware of that type of tax fromtaxes. This depends on the type of job you have and
a very early age.whether or not you've been paying taxes all along.
Sales tax and income tax are some of the mostChances are, if you work for a major company, your
common types of taxes that people come acrossfederal income taxes are taken out of your paycheck
early on. However, these are definitely not the onlybefore you even get it. In this case, you will only need
types of taxes that you will end up paying, even if theyto file your taxes during the first few months of the
are some of the easiest to understand.year after you earned the money. If you did not work
Generally, you will end up paying taxes on a fewfor a company that takes your taxes out of your
things. First, you will need to pay taxes on anything youpaycheck, then you'll probably end up owing money for
earn or make - even if you are not getting the moneyyour taxes.
directly through your job. For instance, if you go to aThere is an exception to this, however. First of all, if
casino and win a large amount of money, you'll have toyou did not make over a certain amount of money
fill out a tax form before the casino is allowed to letduring the year (this amount varies depending on your
you cash out. If you invest in the stock market, you'llliving situation), then you do not owe any taxes. You
have to pay capital gains taxes when you sell yourwill still need to file, but any money that was spent on
shares.taxes during the previous year will be sent back to
Taxes are also applied to property that you may own,you.
as well as excise taxes. Excise taxes are the taxesYou can also deduct certain expenses, including
you pay on cigarettes, alcohol, and gas. In some casesmoney that you spend on equipment for your own
this is due to these substances being somewhatbusiness if you have one.
restricted, in other cases it is related to how difficult it