BYB Tax Blog

Tax filing can be frustrating because it involves understanding and complying with a complex set of rules, regulations, and laws the government sets.  The tax code is constantly changing, which can make it difficult to keep up with the latest rules and requirements. Additionally, each individual's financial situation is unique, making it challenging to determine which deductions and credits apply to them.  To make matters worse, mistakes made on tax returns can lead to fines or other penalties, adding to the stress and confusion. Tax season can be confusing, but it doesn't have to be scary. Here are 10 common tax questions and their answers to help you navigate the process. 1. What is my filing status? Your filing status depends on your personal and marital situation. The five options are Single, Married Filing Jointly or Surviving Spouse, Married Filing Separately, Head of Household, and Qualifying Widow(er) with Dependent Child. (Source: Investopedia )   The choice of f...

If you received a tax document in the mail this month and were confused - you're not alone. Knowing the name, type, and purpose of each tax document can be confusing. In this article, we'll explain the names of some common tax documents, what they're for, and when you can expect them to arrive in your inbox.   Most tax documents start arriving in the middle of January and through the middle of March.  Make sure to check your "snail" mail and your email inbox for tax notifications from your employer or investing platforms.   Here are some common forms that you might receive:  1099-B: Investment sales and capital gains, arrives in Jan through Mid-Feb If you sell stocks, bonds, or other securities through a broker (in-person or via app), you can expect to receive one or more copies of Form 1099-B in January. This form is used to report gains or losses from transactions in the preceding year. The losses can actually help lower your tax liability, so make sure to i...