Tax
How taxes work — from your paycheck to the books
Walk from why taxes exist, through withholding and self-employment filings, to the bridges with GAAP accounting — book vs. tax income, MACRS, and deferred taxes. Start with Tax Fundamentals and work down. Educational content only — not tax advice.
Table of Contents
Tax Fundamentals
Why taxes exist and how the system is structured
How Taxes Work
Why governments tax and how the system is organized
Progressive, Regressive & Proportional
Three rate structures and what each means for taxpayers
Federal, State & Local Taxes
Layers of tax jurisdiction and what each typically covers
Income & Withholding
The mechanics of earning income and paying tax on it
Gross Income vs Taxable Income
From total earnings to the amount that is actually taxed
Payroll Taxes & Withholding
FICA, income tax withheld, and how your paycheck is built
Filing Status & Deductions
How filing status and deductions shape your tax bill
Tax Credits vs Deductions
Dollar-for-dollar credits vs. taxable-income reductions
Self-Employment & Business Taxes
For small business owners and the self-employed
Employee vs Independent Contractor
Classification rules and why they matter for tax and benefits
Self-Employment Tax
Social Security and Medicare when you work for yourself
Schedule C
Reporting sole-proprietor business profit or loss
Estimated Quarterly Taxes
Pay-as-you-go when no employer withholds for you
Business Deductions
Ordinary and necessary expenses that reduce taxable profit
Tax & Accounting Connections
Bridges to financial and managerial accounting
Book Income vs Taxable Income
Why GAAP profit and taxable income diverge
Depreciation: Tax vs GAAP
Book depreciation methods vs. MACRS and tax rules
Deferred Tax Assets & Liabilities
Future tax effects of temporary book-tax differences
Practice Tax Concepts
Reinforce income statements, payroll liabilities, and depreciation in the Practice Lab — then come back to apply the same numbers through a tax lens.
Try It in the Learning Lab→