Financial literacy is one of the most important factors determining success in both personal development and business. Ensuring financial stability for yourself and ur family depends on whether you manage ur financial resources correctly, plan income and expenses, calculate taxes, distribute your own financial resources, or make investments. It is important to start setting financial goals now because everything you do today will affect ur financial means in the future. So, the first step to success has already been taken, and you are opening ur own business. understand how money works, how much investment needs to be made, what the cash flow will be, when you will get the first profit, and how to pay taxes. find answers to these questions in order to ensure ur financial well-being. Taxes in Your Financial Plan For this portfolio project, you will complete the Federal Income Tax Return for the fiscal year, 2022 (12-month period).

In this scenario, u are not married and do not have kids. Being employed as a managing director of ur limited liability company, u provided 100% on ur own and earned $48,000 last year. u have decided not to distribute the profits of ur company. u sold a car that u had bought 3 years ago and got $500 as a long-term capital loss (Schedule D is not required). Additionally, u received $300 in interest on state bonds and $200 in interest on money market accounts. During the year, u had the following expenses: • Medical and dental expenses - $4,200; • State and local income taxes - $2,300; • State and local real estate taxes - $2,000; • Home mortgage interest - $3,800 (you have indicated this amount in Form 1098); • Mortgage insurance premiums - $400; • Charitable contribution to United Way of America made by check - $200; • Federal income tax withheld $4,203.

1) Fill out ur tax return for the 2022 tax year.  

2)  You will have to define the amount of ur deductions. Note that you can only use the deduction (either standard deduction or itemized deductions) that has the highest value.

3) In order to find out how much the Standard Deduction that you are eligible for is, you can complete a short test "How Much Is My Standard Deduction?"

4) Fill out Form 1040 to calculate  Itemized Deductions. When the template is completed, save it as a PDF.

5) make brief notes on what a person could do to reduce the amount of federal income tax liability. find information on applicable deductions and tax rates