Word of the Week:
Tax Returns

Definition: Most people pay taxes throughout the year. When you file a tax return, you calculate how much you legally owed for the year and compare it to how much you paid. If you paid too little, then you send a check in for the rest with the return. If you paid too much, then you sit back and wait for your refund. Filing your tax returns is important because you do not want to mess with the IRS ever.

Key Takeaway: Your annual tax return is where you add up how much you owe the government for the last year, how much you already paid, and reconcile the difference.

Challenge: Undergrads: If you had a job as a teenager, you may want to consider filing to see if there is refund money owed to you.

By law, you have a three-year window from the original due date to claim your refunds.

Fun Fact: Other countries have it much easier. Germany, Japan, and Spain are among the 36 countries in which the citizens don't have to file a tax return, the government does all the number crunching for them.