Tax Basics Explained
Conceptos Básicos de Impuestos
Taxes don't have to be scary. Learn the essentials so you keep more of what you earn.
6 Tax Concepts Every Adult Must Know
W-2 vs 1099
W-2 = employee (taxes withheld automatically). 1099 = contractor/self-employed (you pay taxes yourself, including self-employment tax of 15.3%).
W-2 = empleado (impuestos retenidos automáticamente). 1099 = contratista/autónomo (pagas impuestos tú mismo, incluyendo el impuesto de autoempleo del 15.3%).
Tax Brackets
The US uses progressive tax brackets — you don't pay the top rate on all your income, only on the portion that falls in each bracket.
EE.UU. usa tramos impositivos progresivos — no pagas la tasa más alta en todos tus ingresos, solo en la porción que cae en cada tramo.
Standard Deduction
In 2024, the standard deduction is $14,600 (single) or $29,200 (married). This reduces your taxable income — most people take this instead of itemizing.
En 2024, la deducción estándar es $14,600 (soltero) o $29,200 (casado). Esto reduce tu ingreso gravable.
Tax Credits vs Deductions
Deductions reduce taxable income. Credits reduce your actual tax bill dollar-for-dollar. Credits are more powerful — always look for them first.
Las deducciones reducen el ingreso gravable. Los créditos reducen tu factura fiscal dólar por dólar. Los créditos son más poderosos.
Retirement Accounts
Contributing to a 401(k) or Traditional IRA reduces your taxable income now. A Roth IRA grows tax-free — you pay taxes now, not in retirement.
Contribuir a un 401(k) o IRA Tradicional reduce tu ingreso gravable ahora. Un Roth IRA crece libre de impuestos.
Filing Deadlines
Federal taxes are due April 15. You can file for a 6-month extension (to October 15) but you must still pay any taxes owed by April 15.
Los impuestos federales vencen el 15 de abril. Puedes solicitar una extensión de 6 meses pero debes pagar lo que debes antes del 15 de abril.
Tax Credits You May Qualify For
Credits reduce your tax bill dollar-for-dollar — always check eligibility.
Earned Income Tax Credit (EITC)
Up to $7,430 for low-to-moderate income workers
Child Tax Credit
Up to $2,000 per qualifying child under 17
American Opportunity Credit
Up to $2,500 for college tuition expenses
Saver's Credit
Up to $1,000 for contributing to retirement
Child & Dependent Care Credit
Up to 35% of childcare expenses
Smart Tax Tips
File even if you can't pay — the failure-to-file penalty is 10x worse than failure-to-pay.
Keep receipts for business expenses, home office, and charitable donations year-round.
Max out your 401(k) or IRA contributions to reduce taxable income before year-end.
If you're self-employed, pay estimated quarterly taxes to avoid a big bill in April.