Brought to you by the Every Dollar app. Start budgeting for free today.

So, Jade, when are taxes due? Someone asks. And what if I'm late?

Well, they're due on April 15th. That's the date. But you shouldn't be late because if you think you're going to be late, just file an extension.

That's what I would say.

But even if you file an extension, the taxes are still here. You still got to pay them. If you don't pay them on April 15th, the penalties and interest begin. Oh, yeah. So the extension is not on payment. The extension you file is on the paperwork. The paperwork on the actual filing of your taxes. So you can file an extension to file your taxes, but you should pay them anyway.

Pay what you think file an extension to file your taxes,

but you should pay them anyway. Pay what you think they're going to be. Yes. And yes.

They're going to start penalizing you that day whether you file an extension or not. Tax deduction versus a

tax credit. I like this. So a deduction that's going to lower your taxable income, whereas a credit would lower the overall amount that's due.

I like to think of a credit like a coupon.

$30 off, 50% off.

And not many things are tax credits.

Most things are tax deductions.

That's right.

So a tax deduction is $10,000 deduction means you reduce the income that is taxable by $10,000.

And so if you're in a 25% tax bracket, that then would save you $2,500 on your taxes

because you don't pay taxes on $10,000 worth of income at 25%.

So that's a tax deduction. And that's 99% of the time

what we're talking about around here. Occasionally, there's something that gives you an actual

tax credit, which is dollar for dollar. $10,000 tax credit reduces your tax bill by $10,000.

That is 75% better than a deduction. Okay. But yeah, not many

them out there, but there's a few things that you get tax credits for. Okay, this one blows people

...