InfoGuides: *Personal Financial Literacy Resource Guide*: Chapter 3: Taxes in Your Financial Plan (includes info on Staying Current regarding income taxes)

Chapter 3 Introduction

The basics of taxes and their relationship to financial planning are presented in this chapter. The material starts with a brief discussion of types of taxes. Next, the fundamental aspects of federal income taxes are presented including taxable income, deductions, exemptions, tax rates, and tax credits. The information on filing your federal income tax return covers filing status, types of tax forms, basic steps for completing Form 1040, tax assistance sources, and audit procedures. Finally, the chapter concludes with a discussion of tax planning strategies related to purchasing decisions, investment alternatives, and retirement plans.

LO 3.1: Identify the major tax types in our society: Taxes on Purchases (State, County and City)

US Federal Excise Taxes
Brought to you by the US Department of the Treasury, Alcohol and Tobacco Tax and Trade Bureau
State of NC Taxes - All
See all the different types of taxes levied by the State of NC
Sales and Use Tax: Overview (State of NC)
Sales and Use Taxes are levied by the State, Counties and Cities in which a sale occurs.
Brought to you by the NC Department of Revenue
Go to https://www.ncdor.gov/taxes-forms/sales-and-use-tax/sales-and-use-tax-rates-other-information/sales-and-use-tax-rates-effective-october-1-2020 to see what the Sales Tax Rate is in each NC County.
Sales Tax on Food (State of NC)
Why is the sales tax on food I buy at the grocery store different than when I buy food at a restaurant?
Use Tax (State of NC)
Did you buy something on the internet and not pay any sales tax? You'll need to report that on your annual state income tax return and pay use taxes.
Did you bring an automobile into the state, when you moved? You'll need to pay a use tax before you're allowed to get your license tag.

LO 3.1: Identify the major tax types in our society: Taxes on Property (County and City)

Mecklenburg County Jurisdiction Tax Rates
Mecklenburg County Tax Collector (Property Tax /Real Estate Bill Search)
Real Estate Property Tax are assessed at the County and City level of government. Click on the link, enter the street address (without road, avenue, court, etc) to see the history of tax bills for the property.
Property Tax (Vehicle) Estimator
Brought to you by the NC Department of Motor Vehicles
IMPORTANT REMINDER: Each year you will also have to pay for your vehicle inspection, tags and registration fees.

LO 3.1: Identify the major tax types in our society: Taxes on Wealth (Federal and State)

Estate Taxes (Federal)
The Estate Tax is a tax on your right to transfer property at your death. It consists of an accounting of everything you own or have certain interests in at the date of death. The fair market value of these items is used, not necessarily what you paid for them or what their values were when you acquired them. The total of all of these items is your "Gross Estate." The includible property may consist of cash and securities, real estate, insurance, trusts, annuities, business interests and other assets.
Estate and Inheritance Taxes (State of NC)
While North Carolina’s estate tax was repealed in 2013, other taxes may apply to an inheritance. Tax implications depend on the type of asset, the value, and other factors.

LO 3.1: Identify the major tax types in our society: Taxes on Earnings... from work (Federal, State and possibly city)

LinkedIn Learning: Finance Foundations: Income Taxes

How to Fill Out a New W-4 in 2021: Guide and FAQs
Brought to you by NerdWallet
Simple returns only
How to Fill out Form W-4 in 2021
Brought to you by Investopedia
Includes a detailed section for taxpayers with a more complicated return.
Tax Withholding Estimator
Brought to you by the IRS
W-4 Calculator (2022)
Brought to you by TurboTax
IRS provides tax inflation adjustments for tax year 2023
See a list of the changes for tax year 2023
Tax Foundation
Since 1937, our principled research, insightful analysis, and engaged experts have informed smarter tax policy in the U.S. and internationally. For over 80 years, our mission has remained the same: to improve lives through tax policies that lead to greater economic growth and opportunity.

LO 3.1: Identify the major tax types in our society: Taxes on Earnings... from other (Federal and State)

12 States that Tax Social Security
From Kiplinger
Capital Gains Tax 101
From Kiplinger

LO 3.1: Identify the major tax types in our society: Other Taxes

LinkedIn Learning: Taxes for Small Business
This course is taught from the perspective of the business owner, but reviews all the different types of taxes.
Gift Taxes (Federal)
The gift tax is a tax on the transfer of property by one individual to another while receiving nothing, or less than full value, in return. The tax applies whether or not the donor intends the transfer to be a gift.

The gift tax applies to the transfer by gift of any type of property. You make a gift if you give property (including money), or the use of or income from property, without expecting to receive something of at least equal value in return. If you sell something at less than its full value or if you make an interest-free or reduced-interest loan, you may be making a gift.

LO 3.2: Calculate taxable income and the amount owed for federal income taxes

smartasset.com Income Tax Calculator
This is a great tool! Give it a try!
TurboTax TaxCaster
Calculate how much your refund will be or taxes owed, just by answering a couple of questions.
Tax Bracket Calculator from TurboTax
So, you've gotten the big raise! :)
How much do you need to set aside for taxes? Run your numbers here to see what your marginal tax rate is.
LOTS OF GOOD INFO HERE! Check it out.
Internal Revenue Service (IRS) Home Page
Vanguard: Managing Your Investment Taxes
Includes information on "How Investments are Taxed", "How to Lower Your Taxes" and "How to Report Your Taxes",

LO 3.3: Prepare a federal income tax return

IRS: directfile.irs.gov
Click on the link to get more info on whether you qualify for Direct File with the IRS.
IRS: File Your Taxes for FREE Info
Click on the link above to see if you qualify.
TurboTax: File your Taxes for FREE
Click on the link, answer a few questions and see if you qualify. NOTE: One benefit to using TurboTax is it can grow with you as your tax situation becomes more complex. This will require that you convert over to one of their paid products, but your existing info will come with you.
IRS: Filing Information
Includes info for ALL TYPES of filers.
IRS: Forms, Instructions and Publications
Full library of forms for current and prior years.
US Extension of Time to File Your Federal Income Tax Return
IMPORTANT REMINDER: The automatic extension is TO FILE your return, NOT PAY your taxes. You must pay a full estimate of taxes due with the extension.
This link includes info on how to electronically pay any taxes due with the extension.
IRS: IRAs and how they affect your taxes
IRS: irsvideos.gov
Another option to access previous webinar recordings and education.
YouTube: irsvideos
YouTube: IRSmultilingual
YouTube: IRSvideosASL

LO 3.4: Select appropriate tax strategies for various life situations

Preparing and Filing Your State Income Tax Returns (NC and SC)

NC Department of Revenue
Main Home Page
NC Free File Info
Click on the link above to see if you qualify and file.
NC Individual Tax Forms and Instructions
Full library of forms for current and prior years.
NC Extension of Time to File Your State Income Tax Return
IMPORTANT REMINDER: The automatic extension is TO FILE your return, NOT PAY your taxes. You must pay a full estimate of taxes due with the extension.
This link includes info on how to electronically pay any taxes due with the extension.
SC Department of Revenue
Main Home Page
SC Free File Info
Click on the link above to see if you qualify and file.
SC Individual Tax Forms and Instructions
Full library of forms for current and prior years.
SC Extension of Time to File Your State Income Tax Return
IMPORTANT REMINDER: The automatic extension is TO FILE your return, NOT PAY your taxes. You must pay a full estimate of taxes due with the extension.
This link includes info on how to electronically pay any taxes due with the extension. Look for "Need more time to file?" at the bottom of the page.