Taxes Don’t Have to Be Confusing
How Filing Your Taxes Works
Let’s break down how filing actually works—because whether you’re hoping for a refund or bracing for a bill, understanding the process makes it a lot less painful.
Filing taxes isn’t exactly thrilling, but it doesn’t have to be stressful. I’ll walk you through what happens when you file, how to know if you owe or get a refund, and what actually affects your tax bill. No jargon, no panic—just the facts.
Here’s a simple breakdown of how filing actually works and what affects your tax bill.
When you get paid, your employer withholds estimated taxes based on the W-4 form you filled out when you were hired. Then:
At tax time, they send you a W-2 (or 1099 if you’re a contractor), reporting how much you earned and how much was withheld.
You file a tax return to check: Did you pay enough throughout the year?
If you overpaid → You get a refund.
If you underpaid → You owe taxes.
And remember—tax return filing happens after the tax year ends. That means in April, you’re filing for last year’s income, not this year’s.
What Reduces Your Tax Bill?
Not all income is taxed! You can lower what you owe with:
Deductions: Reduce the amount of income that’s taxed (e.g., retirement contributions, student loan interest).
Credits: Directly reduce your tax bill dollar-for-dollar (e.g., Child Tax Credit).
Deductions Aren’t a Hack to Avoid Paying Taxes
Be wary of social media tax “advice” promising wild deductions. The IRS has rules, and a CPA (Certified Public Accountant) or EA (Enrolled Agent) can help you navigate what’s actually allowed.
When Should You Get Professional Help?
If you had a big life change—like getting married, having a baby, buying a house, or starting a business—your tax situation probably changed, too. That’s a good time to check in with a tax professional to avoid surprises.
Filing taxes isn’t fun, but it doesn’t have to be scary. You’ve got this!
Reply to (hello@financesforfeminists.com) and let me know—what’s the most confusing part of tax filing for you?
