Taxes 101: From Understanding Forms and Filing to Using Tax Laws and Policies to Minimize Costs and Maximize Wealth, an Essential Primer on the US Tax System

Adams 101

by Michele Cagan CPA

Learn the ins and outs of paying taxes with this engaging, informative, and easy-to-navigate guide to the US tax system.

If you want to understand your finances, you need to understand your taxes. Learn everything you need to know about the US tax system and become more financially independent with Taxes 101. As people become more motivated to be as financially literate as possible, understanding every part of their financial wellness is key.

With Taxes 101, you will learn the basics of the US tax system, from the system structure and kinds of taxes to all the tax laws that lead to deductions and credits and the forms associated with filing. This all-in-one financial resource lays the foundation with basic information about the tax system so you can make better choices about your financial wellness.

Genres: Finance, Nonfiction

256 pages, Kindle Edition

Published November 5, 2024

Reviews

[Miss✧Pickypants ᓚᘏᗢ · Rating 4 out of 5]

A compact, little book that imparts a wealth of info regarding U.S. taxes. After reading I have a much better understanding of how the tax system works and was pleasantly surprised with its readability. The author did a wonderful job of taking a complex and tedious topic and making it an interesting and easy read.

[Ben DeGrieck · Rating 4 out of 5]

Quite a page turner

[Andrew Krom · Rating 2 out of 5]

Wish I just read NerdWallet a little more...

[Anthony Santiago · Rating 3 out of 5]

Taxes 101 mostly accomplished what it set out to do: provide U.S. Americans with a practical guide to their hella daunting tax laws. Of course, by 2026 Cagan's reference will likely be quite outdated, but frankly that's just how things go in the shifting catacombs of the IRC, and the author acknowledges this limitation throughout. I suspect her intuitive explanation of tax brackets, however, will remain relevant, so that's good. And the Roman pee tax was kinda funny. Vectigal urinae!!

I was glad to see Cagan dispel some common misconceptions. No, the IRS doesn't write tax law. No, tax preparers don't need any kind of certification (unless they're VITA/TCE volunteers. We actually have to know our stuff.)

Yet unsurprisingly one myth remained intact: The federal government needs tax revenue to pay for stuff (e.g., FICA payroll taxes to finance your Social Security). Repeat after me: "No, ma'am; it doesn't." Federal taxes reduce the money supply to control inflation and create demand for the currency. That's the true function of taxes when ya got fiat money!

The government prints its own money (monetary sovereignty), so it really doesn't need yours, and it certainly doesn't need to budget in the same way you or I do. This macroeconomic magic is extra true for the U.S. since we have the global reserve currency, an exorbitant privilege accrued after decades of sabotage, regime change, genocide, and an advantageous economic position after WWII.

The good thing about federal taxes not funding anything (SALT still does), is that it means we can have crazy aggressive social spending, and the deficit doesn't even matter as long as the spending doesn't outpace productive capacity. The biggest question therefore, is not "How will we pay for it?" but "How will we get politicians to cooperate?" To learn more, check out Stephanie Kelton, Warren Mosler, Bill Mitchell, and other Modern Monetary Theorists.

Now, make no mistake: We've still gotta tax the rich! Even more. First of all, even in MMT state taxes are right there. Plus, all that untaxed money gives the wealthy so much more political influence, so much more pull in corporate media, better lawyers, and so much more cash to splurge on their disproportionately destructive consumerism.

And that brings me to the second missing star, lost when Cagan started the tutorials for loopholes that most of us aren't wealthy enough to use. It's good info to be aware of, but it's presented in a very... uncritical manner. In fact, she takes an active role suggesting ways for landlords to profit more and more from their socially useless hobby, up to the endlessly deferred taxation granted by successive 1031 exchanges.

I know Cagan's going for a neutral tone here. She compiled a reference, not a polemic. But neutrality isn't really neutral is it?

[Megan · Rating 5 out of 5]

Perfect little book! So helpful and eye opening about the history of taxes. It helped me to see that things have constantly changed over the years and that we really need to go year by year since a rule one year could be gone the next.

[Camille · Rating 3 out of 5]

Great for learning the basics but not a very deep dive into minimizing cost/maximizing wealth. This is just the first step and it does a good job covering a lot while still encouraging you to research more.

[Anda Cook · Rating 4 out of 5]

Good little overview

[Dorothy · Rating 4 out of 5]

Excellent summary of taxes

[Aaron Wiley · Rating 5 out of 5]

Simple breakdown of Us tax law. Offers short history, basics about forms and different tax types, and general advice on how to handle certain situations.

[Readersaurus · Rating 5 out of 5]

Surprisingly interesting and very useful.