Dave Ramsey

Taxes.

Just saying the word kind of pisses me off.

But, you know, I just don't like it at all.

But we're going to talk about it because you guys ask a lot of questions about it, especially this time of year.

So, Jade, when are taxes due, someone asks, and what if I'm late?

But even if you file an extension, the taxes are still here.

If you don't pay them on April 15th, the penalties and interest begin.

Oh, yeah.

So the extension is not on payment.

The extension you file is on the paperwork, on the actual filing of your taxes.

So you can file an extension to file your taxes, but you should pay them anyway.

Pay what you think they're going to be.

They're going to start penalizing you that day whether you file an extension or not.

Tax deduction versus a tax credit.

And not many things are tax credits.

Most things are tax deductions.

That's right.

So a tax deduction is $10,000 deduction means you reduce the income that is taxable by $10,000.

And so if you're in a 25% tax bracket, that then would save you $2,500 on your taxes because you don't pay taxes on $10,000 worth of income at 25%.

So that's a tax deduction.