We don’t all need to be tax experts, but we should all be familiar with basic income tax terms, the basic income tax forms, and the basic principles of income tax planning. In some areas, such as preparing for retirement, simple use of income tax planning principles can be the difference between ordinary and successful retirement fund after-tax performance.
- Governments need money in order to provide essential services. - Income taxes are one way that governments collect money collect money to pay forthese essential services. to pay for these essential services. - [Man] Now in the United States in 2019, income taxes are expected to provide 36% of the $6.5 trillion in total revenue collected collected by federal stateand local governments. by federal, state and local governments. Payroll taxes based on income are expected to provide Payroll taxes, based on income, are expected to provide an additional 23% an additional 23% of the total government revenue. of the total government revenue. - The income tax code, regulations, interpretations - The income tax code, regulations, interpretations, and legislative history and legislative history in the United States in the United States, occupied74,608 pages as of 2016.
occupied 74,608 pages as of 2016. - So with the size of these income taxes and with the complexity of the income tax code, it is important that companies carefully plan and structure carefully plan andstructure their operations their operations to pay their fair share of income taxes, to pay their fair share ofincome taxes, but no more. but no more. - The same is true of individuals. As we learn from Judge Rendihand in an earlier section in an earlier section of this course, of this course, taxes are enforced actions, taxes are enforced exactions,not voluntary contributions. not voluntary contributions. - So income tax planning and paying careful attention careful attention to tax related issues, to tax related issues are important are important to the continued survival to the continued survival and success of small businesses.
and success of small businesses. - In some areas, such as preparing for retirement, simple use of income tax planning principles can be the difference between mediocre and successful retirement fund after tax performance. - We don't all need to be tax experts, but we should all be familiar with basic income tax terms, the basic income tax forms and the basic principles of income tax planning. of income tax planning. - This course has provided you with these basic tools. - So let's briefly review what we've learned about income taxes.
NOTE: The information in this course applies only to the United States.
- Comparing different types of taxes
- Tax brackets and tax rates
- Income, deductions, and credits
- Tax loopholes and tax policy
- Completing Form 1040
- Filing taxes online
- Tax planning
- Corporate income taxes
- Common tax issues for small businesses
- Small business taxes