If you’re employed or work for yourself, you have to pay taxes. Depending on where you live, you also may have to pay property and other kinds of taxes. When you file income tax returns every April, you take account of all the payments you’ve made to-date and compare it with what you owe. If you’d overpaid taxes, you get a refund. If you underpaid taxes, you owe the IRS.

At a minimum, it’s important to know the basics of how taxes are calculated, how much you’re paying throughout the year and whether you qualify for any tax breaks come tax filing time.

Deadlines

Know your tax deadlines and start planning ahead for your tax returns and you’ll be more likely to file correctly. You’ll also make sure you can take all your tax breaks.

Deductions, exemptions and credits

When you file your federal income tax return each year, you will use tax deductions, tax exemptions and tax credits to help you determine how much you owe in taxes.

Income tax returns

If you can count on one thing in life, it's paying taxes. When tax time comes around, you have to file a tax return for any income you earned the previous year.

Withholding and estimated tax

How you pay taxes depends on whether you’re employed or you work for yourself. If you’re employed, you pay tax through withholding. If you’re self-employed, you pay quarterly estimated taxes.

Other taxes

In addition to federal income taxes, state and local governments require a number of other taxes. Since they’re required, it’s a good idea to know what they are and what you owe.

Tax professionals

Taxes can be complicated. Luckily, there are professionals who dedicate their work to figuring them out.

2012 Tax rates and tables

How much you pay in taxes depends on your filing status and your income level. You can use this information to plan ahead so that you avoid over- or under-paying taxes throughout the year.