I'm used to people trying to give tax hacks and telling me to adjust my withholdings a certain way (still figuring out what is accurate) and talking to me about pretaxed things and llc things and all that. But it seems the bottom line is that "you pay the goverments and if they owe you they pay you back". And for us to be mindful of credits and deductions as we move through life.
I mean there was one thing of like being mindful of something with regards to buying a house and how you file taxes could change whether you qualify for a certain amount of lending, so that's different.
Also.. while i'm at it, borrowing money isn't taxed right?
And tips? How are they taxed?
Sorry so many questions now. Was trying to say thank you to the subreddit and it looks like I still have more questions about credits and deductions. It's so interesting learning about it all. If there's like a course you recommend I take that would be great too.
One of my favorite parts about being in this subreddit is the fact that people enforce the idea that "there are no loopholes. Just do your taxes right". It's very helpful
byu/AWeb3Dad intax
Posted by AWeb3Dad
1 Comment
Borrowed money isn’t taxed. In 99% of situations.
If it’s forgiven it’s generally taxable income.
There are some situations in which it is taxable income due to original issue discount, but that’s more for people who are trying put capital into a company pretend it’s a 0% interest loan, then try not to pay taxes by claiming money leaving the corporation is just the loan being paid off and not gains from their investment. Or vice versa, company loans money to its own shareholder nonsense.